IBERSOL | 2019 Annual Report

2019 ANNUAL REPORT 2.16 PROVISIONS Contingent liabilities are defined by the Company as (i) possible obligations arising 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 or (ii) present obligations Which arise from past events but are not recog- nized because it is not probable that an outflow of resources embodying economic benefits is required to settle the obligation or the amount of the obligation can not be measured reliably. Contingent liabilities are not recognized in the Company’s financial statements and are disclosed 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 existen- ce 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. 2.17 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 rendered, 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 relevant agreements. 227