Page 87 - Annual Report

HONG KONG ACADEMY OF MEDICINE
香 港 醫 學 專 科 學 院
香港醫學專科學院
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2. BASIS OF PREPARATION AND MATERIAL ACCOUNTING POLICY INFORMATION (Continued)

k) Cash and cash equivalents (Continued)

Cash and cash equivalents are assessed for expected credit losses (ECL) in accordance with
the policy set out in note 2(g).

l) Funds managed by the Group

i) Foundation fund

Funds received which is used exclusively for the establishment and use of the Academy
at such time as the Academy shall direct are accounted for as Foundation fund.

ii) General fund

The fund balance represents the accumulated surplus of the Foundation after deducting
the amounts transferred to the Academy and is used to finance the general operations of
the Group.

m) Provisions and contingent liabilities

Provisions are recognised for liabilities of uncertain timing or amount when the Group has a
present legal or constructive obligation arising as a result of a past event, it is probable that an
outflow of economic benefits will be required to settle the obligation and a reliable estimate can
be made. Where the time value of money is material, provisions are stated at the present value
of the expenditure expected to settle the obligation.

Where it is not probable that an outflow of economic benefits will be required, or the amount
cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the
probability of outflow of economic benefits is remote. Possible obligations, whose existence will
only be confirmed by the occurrence or non-occurrence of one or more uncertain future events
not wholly within the control of the Group are also disclosed as contingent liabilities unless the
probability of outflow of economic benefits is remote.

n) Revenue recognition

Revenue from contracts with customers

The recognition of revenue from contracts with customers is based on the performance
obligations identified in the contracts. Revenue is recognised when (or as) the Group satisfies
as a performance obligation by transferring a promised good or service (i.e. an asset) to a
customer who obtains the control of the assets:

i) Provision of services

Revenue from provision of services is recognised when the services are rendered.

ii) Entrance fees and subscription fees

Entrance fees are recognised at a point in time, i.e. when the cash is received.
Subscription fees are recognised on an accrual basis and over time.

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香港醫學專科學院 2024 年度報告