4. Revenue from contracts with customers

in thousand EUR   2020   2019
Revenues from sale of timber and roundwood   46 121   43 445
Revenue from sales of certified emission reductions (CERs)   65   73
Total revenues   46 186   44 380
Accounting policies

Revenue from contracts with customers – according to IFRS 15 – is recognized when control of the goods or services is transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services.

The Group generates revenues from sale of logs and sale of sawn timber products and recognizes the revenue at a point in time when the goods are at the point the customer purchases them. Payment of the transaction price is due immediately at the point the customer purchases the goods, or within 30 days for account holding customers. For international sales the Group recognizes the revenue for goods at a point in time, according to the agreed Incoterms (International Commercial Terms).

BK Energia Itacoatiara – the associate of Precious Woods – generates CERs (Certified Emission Reductions) in the Amazon region of Brazil. These CERs are purchased by Precious Woods Holding. The produced CERs are recognized as inventory and valued at the lower of cost or net realizable value as long as the certification is not yet achieved, and sold afterwards.