Page 76 - Annual Report

HONG KONG ACADEMY OF MEDICINE
香港醫學專科學院
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

n) Revenue recognition (Continued)

Revenue from other source (Continued)

ii) Interest income

Interest income is recognised as it accrues using the effective interest method.

iii) Dividends

Dividend income is recognised when the shareholders’ right to receive payment
has been established.

iv) Rental income

Rental income is recognised in profit or loss in equal instalments over the period
covered by the lease term.

o) Related parties

a) A person, or a close member of that person’s family, is related to the Academy if
that person:

i) has control or joint control over the Academy;

ii) has significant influence over the Academy; or

iii) is a member of the key management personnel of the Academy or the
Academy’s parent.

b) An entity is related to the Academy if any of the following conditions applies:

i) The entity and the Academy are members of the same Academy (which
means that each parent, subsidiary and fellow subsidiary is related to the
others).

ii) One entity is an associate or joint venture of the other entity (or an associate
or joint venture of a member of a group of which the other entity is a
member).

iii) Both entities are joint ventures of the same third party.

iv) One entity is a joint venture of a third entity and the other entity is an
associate of the third entity.

v) The entity is a post-employment benefit plan for the benefit of employees of
either the company or an entity related to the Academy.

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74 HKAM Annual Report 2021