Page 113 - KELAG Annual Report 2019
P. 113

year, is based on a cut-off in the statement of financial position and a simulation of volumes which
           have been supplied but for which no meter reading is available yet nor which have been invoiced.
           Revenue  is  recognised  net  of  any  sales  deductions  and  VAT  as  well  as  after  elimination  of
           intercompany transactions. The payment terms for retail, business and industry customers using
           electricity,  gas  and  heat  is  typically  14  days.  There  are  therefore  no  significant  financing

           The practical expedients of IFRS 15 to recognise revenue in the amount invoiced by the KELAG
           Group, to not include significant financing components with a term between rendering a service
           and payment of up to one year and to expense the costs of obtaining a contract if the amortisation
           period had been one year or less, are exercised where possible.

           Earnings from and measurement of derivative financial instruments relating to energy whose
           primary purpose is a physical delivery of energy are presented in revenue for sales transactions
           and in cost of materials and of purchased services for purchase transactions.

           Earnings from and measurement of derivative contracts in energy trade whose primary purpose
           is not a physical delivery of energy, but the management of an energy trade item, are recognised
           as revenue. The underlying revenue, incidental purchasing costs and measurements are offset
           against each other and presented net in revenue.
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