2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.24 Revenue
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, medical supplies and surgical products. 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 in the period the services are provided over the term of the membership
contract.
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
Deferred management fees represent amounts charged to residents at the retirement village under the long-term
management agreements. Deferred management fees are recognised upon performance of services, calculated in
accordance with terms stipulated in 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.
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Notes to the
Financial Statements
For the financial year ended 31 December 2014 (continued)
KPJ Healthcare Berhad annual report
2014
