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Notes to the financial statements
31 December 2012
(continued)
Annual Report 2012 KPJ Healthcare Berhad
2. Summary of significant accounting policies (continued)
2.23 Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured.
Revenue is measured at the fair value of consideration received or receivable.
(a) Sale of goods and rendering of services
Revenue from hospital operations comprises inpatient and outpatient hospital charges, consultation fees, and sales of pharmaceutical products
and medical supplies. These are recognised when services are rendered and goods are delivered, net of discounts, rebates and returns.
Other hospital revenue mainly consists of clinic rental for consultants. These are recognised on an accrual basis in accordance with the substance
of the relevant agreements.
(b) Wellness subscription fees
Wellness subscription fees are recognised over the membership period.
Annual renewal fees are recognised on the accrual basis based on fees chargeable to members upon execution and renewal of the membership.
(c) Tuition fees
Revenue from tuition fees are recognised over the period of instruction whereas non-refundable registration and enrolment fees are recognised
on a receipt basis.
(d) Deferred Management Fees Revenue
Deferred management fees represent amounts owed to the Trust in connection with Resident occupancy at the retirement village subject to long-
term management agreements. Deferred management fees are calculated in accordance with Resident contracts.
(e) Dividend income
Dividend income is recognised when the Group’s right to receive payment is established.
(f) Management fees
Management fees represent fees charged to subsidiaries for assisting in the management of the subsidiaries and these are recognised upon
performance of services.
(g) Interest income
Interest income is recognised on an accrual basis using the effective interest method.