Construction Industry Council - Annual Report 2024

ANNUAL REPORT 2024 227 For the year ended 31 December 2024 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Typical payment terms which impact on the amount of contract liabilities recognised are as follows: (a) Course fee and related income When the Group receives course fees before the construction training course commences, it gives rise to contract liabilities at cash receipt, until the amount is recognised as course fees and related income. The Group typically receives the full amount of the construction training course fees before the course commences. (b) Workers registration fees The workers registration fees normally have a validity period of 60 months in accordance with the Construction Workers Registration (Fees) Regulation (Cap 583 (B)). When the Group receives the registration fees from the construction workers, it gives rise to contract liabilities at cash receipt, until the amount is recognised as registration fee income over the period. (c) Registration fees from sub-contractors The registration fees from sub-contractors normally have a validity period of 60 months under the Registered Specialist Trade Contractors Scheme. When the Group receives the registration fees from the sub- contractors, it gives rise to contract liabilities at cash receipt, until the amount is recognised as registration fee income over the period. 23. TAXATION Pursuant to section 28 of the Construction Industry Council Ordinance, the Council is exempted from taxation under the Inland Revenue Ordinance. Zero Carbon Building, a wholly owned subsidiary of the Council, is exempted from Hong Kong Profits Tax under section 88 of the Inland Revenue Ordinance. Hong Kong Institute of Construction, a wholly owned subsidiary of the Council, is exempted from Hong Kong Profits Tax under section 88 of the Inland Revenue Ordinance. Construction Sector Imported Labour Quarters Limited, a wholly owned subsidiary of the Council, had applied for exemption from Hong Kong Profits Tax under section 88 of the Inland Revenue Ordinance, the ratification process is in progress. 24. CAPITAL RISK MANAGEMENT The Group manages its capital to ensure that the Group will be able to continue as a going concern through the optimisation of the debt and equity balances. The Group’s overall strategy remains unchanged from prior year. The capital structure of the Group consists of capital fund. The Council members of the Group review the capital structure periodically. As part of this review, the Group will balance its overall capital structure through obtaining finances from available sources.