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NOTES
Consolidated financial statements • 83
REVENUE BY PRODUCT CATEGORY
DKK million
11,991
Charms
3,672
Bracelets
2,643
Rings
1,975
Other jewellery
Accounting policies
Revenue is recognised to the extent that it is probable that
economic benefits will flow to PANDORA, the revenue
can be reliably measured and when the significant risks
and rewards of ownership of the goods have passed to
the buyer, usually on delivery of the goods. Revenue is
measured at the fair value of the consideration received,
excluding discounts, rebates and sales taxes and duties
when they are passed on to customers. Sales taxes and
duties incurred on sales that are not recoverable from the
taxation authority are reported gross as part of revenue and
cost of sales.
Provisions for rebates and discounts granted to
wholesalers and franchisees are recognised as a reduction
of revenue, whereas the effect of expected returns is
recorded as a reduction of gross profit, i.e. revenue and cost
of sales. The provisions are measured on the basis of the
terms in the specific agreements and historical experience.
Significant accounting estimates
Recognition and measurement of revenue is based on
estimates and judgements relating to the expected sales
returns allowed to customers in most countries. These
judgements can have a material impact on the timing and
measurement of the recognised revenue as well as the
level of the return provision. Reductions in revenue from
expected sales returns is calculated based on historical
return patterns and on a case-by-case basis, if extended
returns are allowed for specific goods for commercial
reasons.
REVENUE
Revenue by product category
1
DKK million
2016
2015
Charms
11,991
10,833
Bracelets
3,672
2,690
Rings
2,643
2,066
Other jewellery
1,975
1,148
Total revenue
20,281
16,737
1
Figures include franchise fees of DKK 155 million (2015: DKK 138 million), which are allocated to the product categories.
SECTION 2: RESULTS FOR THE YEAR, CONTINUED
2.1