RWS AR 23 Final Single pages - Flipbook - Page 121
Support and maintenance (Language and Content
Technology segment)
Professional services (Language and Content
Technology segment)
Support and maintenance represents a stand ready
obligation to provide additional services to the Group’s
licence customers over the period of support included
in the contract. The Group measures the obligation by
reference to the standalone selling price, based upon
internal list prices subject to discount. The pattern of
transfer is deemed to be over time on the basis that this
is a continuing obligation over the period of support
undertaken and accordingly, recognised as revenue on a
straight line basis over the course of the contract.
The Group provides professional services to customers
including training, implementation and installation
services alongside certain contracts for software
licences. These services are sold in units of consultant
time and are therefore measured on an output method
basis. Revenue is therefore recognised on these
engagements based on the units of time delivered to the
end customer. Transaction price is allocated based upon
the standalone selling price, calculated by reference to
the internal list prices for consultant time subject to any
discounts. A small number of the Group’s professional
services contracts are on a 昀椀xed price contract and
the output method is used based on an appraisal of
applicable milestones.
Hosting services (Language and Content Technology
segment)
The Group provides managed services (hosting) as part of
certain contracts with customers. The pattern of transfer for the
service is such that the customer simultaneously receives and
consumes the bene昀椀ts provided by the Group and therefore,
is recognised over time for the duration of the agreement.
Transaction price from the contract is allocated to hosting
services obligations based upon a cost plus method.
Revenue from contracts with customers
The Group generates all revenue from contracts with its customers for the provision of translation and localisation,
intellectual property support solutions and the provision of software. Revenue from providing these services during the
year is recognised both at a point in time and over time as shown in the table below:
Timing of revenue recognition for contracts with customers
At a point in time
Over time
IP Services
At a point in time
Over time
Language and Content Technology
Over time
Language Services
Over time
Regulated Industries
Total revenue from contracts with customers
2023
£m
2022
£m
22.4
82.4
104.8
25.8
110.9
136.7
329.8
329.8
162.5
162.5
733.8
21.2
86.0
107.2
26.0
100.9
126.9
342.1
342.1
173.0
173.0
749.2
See Note 4 for information on revenue disaggregation by geographical location.
Capitalised contract costs
Capitalised contract costs primarily relate to sales commission costs capitalised under IFRS 15 and are amortised over
the length of the contract. The group has taken advantage of the practical expedient to recognise, as an expense, any
costs which would be recognised in fewer than 12 months from being incurred. This primarily relates to the Group's
language services commissions and point in time technology revenue related commissions. The value of capitalised
contract costs at year end was £1.7m (2022: £1.9m). Capitalised contract costs are recognised within other debtors on
the statement of 昀椀nancial position.
NOTES TO THE CONSOLIDATED STATEMENTS
RWS Holdings plc — Annual Report 2023
121
