24 REVENUE
Revenue represents the invoiced value of goods sold and services rendered, less discounts, and the value of work done on
cabling and installation projects that are undertaken.
Group
2015
2014
$’000
$’000
Equipment and cards sales
452,077
394,232
Voice services, mobile data and location tracking services
8,640
8,191
Cabling and installation projects
57,414
51,275
Logistic and consultancy services
25,152
11,097
Information technology projects
37,370
52,009
580,653
516,804
Revenue for cabling and installation projects and information technology projects mainly represents contract revenue.
Equipment and cards sales revenue includes Personal Communications Solutions Services (“PCS”) business, in which certain
sales of mobile communication devices and accessories are made to a related corporation. During 2014, the Group renewed
its contract with the related corporation and management has considered the following factors in distinguishing between an
agent and a principal and concluded that the Group acts as a principal in the transaction rather than as the agent:
• The Group has the primary responsibility for fulfilling the order and providing the equipments to the related corporation;
• The Group is required to bear inventory risk of loss and damage upon delivery of equipments by manufacturers. The related
corporation has the rights or entitlement to cancel the purchase order issued to the Group prior to the receipt of such
equipment ordered; and
• Credit risk with customers or counterparties is borne by the Group.
The conclusion that the Group act as a principal continues to be consistent in 2015.
Deferred revenue in the balance sheet comprised:
Group
2015
2014
$’000
$’000
Information technology maintenance services
4,728
4,870
102
TELECHOICE INTERNATIONAL LIMITED
2015 ANNUAL REPORT
NOTES TO THE
FINANCIAL STATEMENTS
