RWS AR 23 Final Single pages - Flipbook - Page 122
Notes to the Consolidated Financial Statements (continued)
Receivables, contract assets and contract liabilities with customers
Net trade receivables
Notes
2023
£m
2022
£m
15
138.6
148.9
Contract assets (accrued income)
15
52.7
51.2
Contract liabilities (deferred income)
17
(49.9)
(53.0)
Contract assets are recognised where performance obligations are satis昀椀ed over time until the point at which the
Group's right to consideration is unconditional when these are classi昀椀ed as trade receivables which, is generally the
point of 昀椀nal invoicing.
For performance obligations satis昀椀ed over time, judgement is required in determining whether a right to consideration
is unconditional. In such situations, a receivable is recognised for the transaction price of the non-cancellable portion of
the contract when the Group starts satisfying the performance obligation. The Group recognises revenue for partially
satis昀椀ed performance obligations as ‘Accrued Income’, which is presented in Note 15 to these 昀椀nancial statements.
The total value of the transaction price allocated to unsatis昀椀ed or partially unsatis昀椀ed performance obligations at the
year-end is £53.5m (2022: £54.1m). Support and maintenance is a stand ready obligation discharged straight line over
the duration of the Group’s software contracts, the period over which this is recognised can be identi昀椀ed based on the
value of current and non-current deferred income. Unsatis昀椀ed performance obligations in respect of language and
professional services are all short-term and expected to be recognised in less than one year.
The Group o昀昀sets any contract liabilities with any contract assets that may arise within the same customer contract,
typically, this only applies to the Group’s licence and support and maintenance revenue contracts. In all material
respects there are no signi昀椀cant changes in the Group’s contract asset or liability balances other than business-as-usual
movements during the year.
Revenue recognised in the year that was included in deferred revenue at 1 October 2022 was £49.5m (2022: £40.8m).
4. SEGMENT INFORMATION
The chief operating decision maker for the Group is identi昀椀ed as the Group’s Board of Directors collectively. The Board
reviews the Group’s internal reporting in order to assess performance and allocates resources. The Board divides
the Group into four reportable segments and assesses the performance of each segment based on the revenue and
adjusted pro昀椀t before tax. These measures are reconciled to the 昀椀nancial statements on page 165.
The four reporting segments, which match the operating segments, are explained in more detail below:
•
Language Services: The revenues are derived by providing localisation services which include translation and
adaptation of content across a variety of media and materials to ensure brand consistency.
•
Regulated Industries: Revenue is generated through the translation and linguistic validation for customers who
operate in regulated industries such as life sciences.
•
IP Services: The Group’s IP Services segment provides high quality patent translations, 昀椀ling services and a broad
range of intellectual property ("IP") search services.
•
Language and Content Technology ("L&CT"): Revenue is generated through the provision of a range of translation
technologies and content platforms to clients. This was enhanced by the acquisition of Propylon Holdings Ltd in
July 2023.
Unallocated costs re昀氀ect corporate overheads and other expenses not directly attributed to segments.
122
RWS Holdings plc — Annual Report 2023 NOTES TO THE CONSOLIDATED STATEMENTS
