2020 INTEGRATED REPORT

15. REVENUE 15.1 Insurance premium revenue See accounting policies 4.2.1 and 4.2.2. 15.2 Other income Other income is recognised in line with IFRS 15, “Revenue from contracts with customers”. There are no material changes to revenue recognition of other income which is recognised under IFRS 15. Other income is measured at the fair value of the consideration received or receivable. Policy administration and collection services fee income are fees arising from services rendered in conjunction with the administration of long-term insurance policies which are underwritten by other insurance companies as well as Retirement Annuities housed in the PPS Retirement Annuity Fund. Administration fees include fees charged to medical aid schemes for administration services rendered to these entities. Investment management fees include service fees earned in respect of investment management services rendered. Commission received is recognised in the accounting period in which it accrues. All fees and commission are recognised as services are rendered. 15.3 Investment income Investment income comprises interest, dividends, as well as net fair value gains or losses on financial assets held at fair value through profit or loss. Interest is recognised as income on the effective interest method. Interest income on financial assets at fair value through profit or loss is recognised as part of the fair value movement. Dividends are recognised as income on the last day to register in respect of listed shares. Dividends include shares received in terms of capitalisation issues, irrespective of whether there is an option to receive cash in lieu of shares. 15.4 Gains on financial assets and investment property Gains (both realised and unrealised) on financial assets held at fair value through profit or loss comprise of gains on disposal or revaluation of assets to fair values and are recognised in the Statement of Profit or Loss and Other Comprehensive Income. PPS INTEGRATED REPORT 2020 | 143