A levy is triggered in full as soon as the entity generates revenues in a specific market
An entity with calendar year end generates revenues in a specific market in 2013. The amount of the levy is determined by reference to revenues generated by the entity in the market in 2012, although the levy is only payable when revenues are generated in 2013. The entity generated revenues in the market in 2012 and starts to generate revenues in the market in 2013 on 3 January 2013.
In this example, the liability is recognised in full on 3 January 2013 because the obligating event, as identified by the legislation, is the first generation of revenues in 2013. The generation of revenues in 2012 is necessary, but not sufficient, to create a present obligation to pay a levy. Before 3 January 2013, the entity has no obligation. In other words, the activity that triggers the payment of the levy as identified by the legislation is the first generation of revenues at a point in time in 2013. The generation of revenues in 2012 is not the activity that triggers the payment of the levy. The amount of revenues generated in 2012 only affects the measurement of the liability.