Page 138 - Urban Renewal Authority 2023-24 Annual Report

NOTES TO THE FINANCIAL STATEMENTS

(expressed in Hong Kong Dollars)

4. Critical accounting estimates and judgements (Continued)

Impairment of properties and provision for a committed project sensitivity
As at 31 March 2024, if the respective estimated upfront premium to be received on the projects had been
increased/decreased by 5% with all other variables held constant, the deficit of the Group for the year
would decrease/increase by approximately $298,500,000 (2022/23: $584,000,000) resulting from the
change in provision for impairment on properties and committed projects.

The final impairment amount for properties and the ultimate losses arise from the committed projects
would be affected by the actual realised value and development and related costs and the final
arrangements with the property developers.

5. Revenue and other income, net

(a) Revenue
(i) Disaggregation of revenue
Disaggregation of revenue from contracts with customers by major products or service lines is
as follows:

2024 2023

$’000 $’000

Revenue recognised outside the scope of HKFRS 15
– Upfront premium from property developers 1,940,000 4,841,000
– Share of property development surplus on joint
development projects 448,976 475,811

Revenue from contracts with customers within the
scope of HKFRS 15
– Sale of properties 634,946 196,572

3,023,922 5,513,383

(ii) Revenue expected to be recognised in the future arising from contracts with customers in
existence at the reporting date
At 31 March 2024, the cumulative aggregate amount of revenue expected to be recognised in
the consolidated statement of comprehensive income in the future from pre-completion sales
contracts entered into in relation to the Group’s properties held for sale pending transfer of
control amounted to $969,414,000 (2022/23: $170,501,000) which will be recognised when the
properties are legally assigned to the customers. The Group will recognise the expected
revenue in future on the basis that control over ownership of the property has been passed to
the customer, which is expected to occur over the next 36 months.

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