Page 92 - Annual Report

HONG KONG ACADEMY OF MEDICINE HONG KONG ACADEMY OF MEDICINE
香 香港醫學專科學院 香 香港醫學專科學院
醫
院
學
專
港
學
專
科
學
港
醫
學
院
科
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024 FOR THE YEAR ENDED 31 DECEMBER 2024

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

n) Revenue recognition (Continued) o) Related parties (Continued)

Revenue from contracts with customers (Continued) b) An entity is related to the Academy if any of the following conditions applies:

iii) Income from international congress and various functions 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).
Income from international congress and various functions is recognised on an accrual
basis and point in time. 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).
Revenue from other source
iii) Both the entity and the Group are joint ventures of the same third party.
i) Donations and grants
iv) One entity is a joint venture of a third entity and the other entity is an associate of
Donations income are recognised upon receipt of cash. the third entity.

Designated grant are recognised on a systematic basis in the same periods in which the v) The entity is a post-employment benefit plan for the benefit of employees of either
expenses are incurred. the company or an entity related to the Academy.

Conditional donation, government grant and sponsorship grant income is recognised in vi) The entity is controlled or jointly controlled by a person identified in (a).
the statement of financial position as deferred income initially and recognised in income
and expenditure in the period when the conditions are fulfilled. vii) A person identified in (a)(i) has significant influence over the entity or is a member
of the key management personnel of the entity (or of a parent of the entity).
ii) Interest income
viii) The entity, or any member of a group of which it is a part, provides key
Interest income is recognised as it accrues using the effective interest method. management personnel services to the Group or to the Group’s parent.

iii) Dividends Close members of the family of a person are those family members who may be expected to
influence, or be influenced by, that person in their dealings with the entity.
Dividend income is recognised when the shareholders’ right to receive payment has been
established. p) Employee benefits

iv) Rental income i) Short term employee benefits and contributions to defined contribution retirement plans

Rental income is recognised in profit or loss in equal instalments over the period covered Salaries, annual bonuses, paid annual leave, contributions to defined contribution plans
by the lease term. and the cost of non-monetary benefits are accrued in the year in which the associated
services are rendered by employees. Where payment or settlement is deferred and the
o) Related parties effect would be material, these amounts are stated at their present values.

a) A person, or a close member of that person’s family, is related to the Academy if that Contributions to the Mandatory Provident Funds as required under the Hong Kong
person: Mandatory Provident Fund Schemes Ordinance are charged to the income and
expenditure account.
i) has control or joint control over the Academy;
ii) Termination benefits
ii) has significant influence over the Academy; or
Termination benefits are recognised when, and only when, the Group demonstrably
iii) is a member of the key management personnel of the Academy or the Academy’s commits itself to terminate employment or to provide benefits as a result of voluntary
parent. redundancy by having a detailed formal plan which is without realistic possibility of
withdrawal.

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90 HKAM Annual Report 2025