INCOME
The group’s income is generated mainly by the sale of clothing and
cosmetics to consumers. Sales revenue is reported less value-added
tax, returns and discounts as sales excluding VAT in the income statement.
Income is reported in conjunction with sale/delivery to the
customer.
Franchise sales have two components: sales of goods to
franchisees, which are reported on delivery of the goods, and franchise
fees, which are reported when the franchisee sells goods to the
consumer. The group’s income exhibits seasonal variations. The first
quarter of the financial year is normally the weakest and the last
quarter the strongest. Interest income is reported as it is earned.