Consolidated Financial Statements
of the obligation can not be measured reliably.
Contingent liabilities are not recognized in the Company’s financial statements and are disclo-
sed in these Notes to the Financial Statements, unless the possibility of an outflow of funds
affecting future economic benefits is remote, in case they are not even disclosed.
Contingent assets are possible assets that arise from past events and whose existence will
only be confirmed by the occurrence or not of one or more uncertain future events not wholly
under the control of the Company.
Contingent assets are not recognized in the Company’s financial statements but are disclosed
in these Notes to the Financial Statements when it is probable that there will be a future
economic benefit.
2.16 RECOGNISING REVENUE
Revenue comprises the fair value of the sale of goods and rendering of services, net of taxes
and discounts and after eliminating internal sales. Revenue is recognised as follows:
a) Sale of goods - retail
The sale of goods is recognised when the product is sold to the customer. Retail sales are
normally made in cash or through debit/credit cards. Sales of goods to customers, associated
to events or congresses, are recognised when they occur.
b) Rendering of services
Rendering of services is recognised in the accounting period in which the services are ren-
dered, in reference to the transaction end date on the consolidated statement of financial
position date.
c) Royalties
Royalties are recognised according to the accrual policy, according to the content of the rele-
vant agreements.
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