EWSC nets E104m profit
LOBAMBA – The Eswatini Water Services Corporation (EWSC) has announced profits amounting to E104 104 075 for the financial year ended March 31, 2022.
This is E42 236 421 more than the profit that the corporation declared in the previous financial year. This is contained in the corporation’s annual report for 2022, tabled by the Acting Minister of Natural Resources and Energy, Jabulani ‘Buy Cash’ Mabuza, in Parliament yesterday.
The report stipulates that revenue comprised the fair value of the consideration received or receivable for the provision of services in the ordinary course of the corporation’s activities.
“The corporation did not adjust the promised amount of consideration for the effects of a significant financing component because it has assessed that for most of the contracts the period between when the corporation transfers the goods and services to the customer and when the customer pays for the consideration is one-tier or less,” reads the report.
Billing
Revenue from the sale of potable water was recognised over time at the metering point as revealed in the report and this was the point where the units of water supplied to the customer for a specific period was read for billing purposes and recognised as revenue.
It was stated in the report that the EWSC recognised revenue when the performance obligation stipulated in the contract with the customer was satisfied, when the amount of revenue can be reliably measured and when it was probable that future economic benefits would flow to the entity and specific criteria had been met for each of the corporation’s activities.
“The amount of revenue is not considered to be reliably measured until all contingencies relating to the sale have been resolved. The corporation basis its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement,” reads the report in part.