HKSI Institute AR2023

HKSI Institute Annual Report 2023 66 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (Expressed in Hong Kong dollars unless otherwise indicated) 3 CHANGES IN ACCOUNTING POLICIES (continued) New HKICPA guidance on the accounting implications of the abolition of the MPF-LSP offsetting Mechanism (continued) In July 2023, the HKICPA published “Accounting implications of the abolition of the MPF-LSP offsetting mechanism in Hong Kong” that provides guidance on the accounting considerations relating to the offsetting mechanism and the abolition of the mechanism. In particular, the guidance indicates that entities may account for the accrued benefits derived from its mandatory MPF contributions that are expected to be used to reduce the LSP payable to an employee as deemed contributions by that employee towards the LSP. However, upon the enactment of the Amendment Ordinance in June 2022, it is no longer permissible to apply the practical expedient in paragraph 93(b) of HKAS 19 and recognise such deemed contributions as reduction of current service cost in the period the related service is rendered, and any impact from ceasing to apply the practical expedient is recognised as a catch-up adjustment in profit or loss with a corresponding adjustment to the LSP liability during the year ended 31 March 2023. In this financial report and in prior periods, the Group has been accounting for the accrued benefits derived from its mandatory MPF contributions that are expected to be used to reduce the LSP payable to an employee as deemed employee contributions towards the LSP and applying the above-mentioned practical expedient, which is no longer permissible under the HKICPA guidance. The Group is in the process of making an assessment of what the impact of this new guidance. The management has commenced the processes including additional data collection and impact assessment. However, the impact is not reasonably estimable at the time this financial report is authorised for issue, as the Group has yet to fully complete its assessment. The Group expects to adopt this guidance with retrospective application in its annual financial statements for the year ending 31 March 2024. 4 REVENUE AND OTHER INCOME (a) Disaggregation of revenue Revenue from contracts with customers within the scope of HKFRS 15 is analysed as follows: 2023 2022 Disaggregated by the timing of revenue recognition Revenue recognised at a point in time $ 54,436,475 $ 54,026,648 Revenue recognised over time 3,024,897 3,458,706 $ 57,461,372 $ 57,485,354 The Group has applied the practical expedient in paragraph 121 of HKFRS 15 to its contracts with customers and did not disclose information about the remaining performance obligations under the contracts that had an original expected duration of one year or less.