Page 75 - 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)

m) Provisions and contingent liabilities

Provisions are recognised for liabilities of uncertain timing or amount when the Group
has a 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 future events 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 recognised over time.

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.

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香港醫學專科學院 2021 年度報告 73