Cordlife Group

[valuebuddies]

Revenue from cord blood banking contracts and umbilical cord tissue banking services is recognised by reference to the stage of completion of the service. Stage of completion is measured by reference to the percentage of costs incurred to estimated total costs to complete the contracts. Revenue received in advance for services to be rendered under cord blood and umbilical cord tissue banking contracts is accounted for as deferred revenue on the statement of financial position.

The Group recognises revenue from cord blood banking service contracts and umbilical cord tissue banking services based on the stage of completion method. The stage of completion is measured in accordance with the accounting policy stated in Note 2.22. Significant assumptions and estimates are required in determining the total estimated costs. In making the assumptions, the Group evaluates them by relying on past experience and evidence.

They recognised deferred revenue under current and non-current liabilities which I guess represents the future contractual period. Similar to some construction company's practice, the revenue are recognised to the extent that the cost been incurred to date. But the difference for Cordlife is that once contract is signed and full payments is made, there is no way for customers to claim back the fees for the "unutilised contract period".