Page 88 - 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)

n) Revenue recognition (Continued)

Revenue from contracts with customers (Continued)

i ii) Income from international congress and various functions

Income from international congress and various functions is recognised on an accrual
basis and point in time.

Revenue from other source

i) Donations and grants

Donations income are recognised upon receipt of cash.

Designated grant are recognised on a systematic basis in the same periods in which the
expenses are incurred.

Conditional donation, government grant and sponsorship grant income is recognised in
the statement of financial position as deferred income initially and recognised in income
and expenditure in the period when the conditions are fulfilled.

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.

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86 HKAM Annual Report 2024