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PPS
INTEGRATED REPORT 2018
114
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 and PPS Beneficiaries Trust, 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
(Losses)/profits on financial assets and investment property
Profits and losses (both realised and unrealised) on financial assets held at fair value through profit or
loss comprise of gains and losses on disposal or revaluation of assets to fair values and are recognised
in the Statement of Profit or Loss and Other Comprehensive Income.
GROUP ACCOUNTING
POLICIES
(continued)