Strategic report Governance Financial statements Other information SECTION 1: RESULTS FOR THE YEAR NOTES TO THE GROUP FINANCIAL STATEMENTS INCOME STATEMENT CONTINUED 1.1 Revenue continued 1.2 Segmental reporting Under IFRS 8, operating segments are required to be determined based upon the way the Group Other generates revenue and incurs expenses and the primary way in which the Chief Operating Decision Other revenue was made up entirely of the provision of funds data services and research to Maker (CODM) is provided with financial information. In the case of the Group, the CODM is considered external parties through Funds Library. Billing was either carried out in advance or in arrears with to be the Executive Committee. transactional amounts determined in advance and agreed in line with the contract for services. For those amounts billed in advance, the income was deferred over the contract period. Those It is the view of the Board and of the Executive Committee that there is only one segment, being amounts billed in arrears were accrued for over the performance period of the contract, in line with the Group – a direct wealth management service administering investments in ISA, SIPP and Fund the estimated usage of services. & Share accounts, providing services for individuals and corporates. Given that only one segment Timing and significant judgements made in relation to revenue exists, no additional information is presented in relation to it, as it is disclosed throughout these financial statements. As at year end, the Group has discharged all of its obligations in relation to contracts with customers, other than in relation to those services that are billed in advance or arrears. These The Group does not rely on any individual customer and so no additional customer information amounts are not material and where an obligation still exists at year end and the payment exceeds is reported. the services rendered a contract liability is recognised, as deferred income in trade payables and 1.3 Operating costs spread across the period of the transaction evenly. At the end of the period the longest period of liability in relation to deferred income is three months. None of the revenue streams contain financing components. Operating costs Operating costs represent those arising as a result of our operations and include depreciation There are no significant judgements made in relation to the timing or determination of transaction and amortisation. All amounts are recognised on an accruals basis. price of any revenue streams. Leasing Leases that are considered short term or low value under IFRS 16 are charged to the income Year ended Year ended statement on a straight line basis over the term of the relevant lease. Benefits received and 30 June 2021 30 June 2020 receivable as an incentive to enter into a lease are also spread on a straight line basis over the £m £m lease term. Platform Fees 263.7 234.4 Fund Management Fees 60.8 63.6 Marketing and distribution costs Ongoing Adviser Fees 9.0 10.2 Interest earned on clientmoney 51.9 91.2 Marketing and distribution costs include advertising and marketing costs, as well as the cost Renewal commission 5.1 4.9 of providing statements and information to clients. Fees on stockbroking transactions 231.6 127.3 Dealing and financial services costs Initial adviser charges 5.1 8.6 Dealing and financial services costs are those costs associated with the cost of doing business Other transactional income 3.8 4.2 in relation to stockbroking and volume related transactions. Other revenue – 6.5 Total Revenue 631.0 550.9 145 Hargreaves Lansdown Report and Financial Statements 2021