149 SWIRE PROPERTIES ANNUAL REPORT 2024 4. Revenue (continued) Accounting Policy (continued) Definition of terms Contract asset: An entity’s right to consideration in exchange for goods or services that the entity has transferred to a customer when that right is conditional on something other than the passage of time (for example, the entity’s future performance). Contract liability: An entity’s obligation to transfer goods or services to a customer for which the entity has received consideration from the customer. When the Group enters into sale and purchase contracts for properties or sale contracts for services other than tenancy agreements, if the performance obligations fulfilled by the Group exceed the total payments received to date, a contract asset is recognised; if the total payments received to date exceed the performance obligation fulfilled, a contract liability is recognised. Deposits received upon signing of sale and purchase contracts, or sale contracts are recognised as contract liabilities. Contract asset and contract liability are defined in HKFRS 15 “Revenue from Contracts with Customers”. These two terms do not apply to rental income from lease agreements, which is specifically excluded from the scope of HKFRS 15. Revenue represents sales by the Company and its subsidiary companies to external customers which comprises: 2024 HK$M 2023 HK$M Gross rental income from investment properties 13,316 13,408 Property trading 88 166 Hotels 888 979 Rendering of other services 136 117 14,428 14,670 2024 HK$M 2023 HK$M Revenue recognised in the current reporting period that was related to the contract liability balance at the beginning of the year 5 14 Of the contract liabilities of HK$637 million outstanding at 31st December 2024 (2023: HK$5 million), HK$637 million is expected to be recognised as revenue after one year (2023: HK$5 million was expected to be recognised as revenue within one year). The following table shows unsatisfied performance obligations resulting from contracts with customers. 2024 HK$M 2023 HK$M Aggregate amount of the transaction price allocated to revenue contracts that are partially or fully unsatisfied at the end of the year 5,286 46 Of the amount disclosed above at 31st December 2024, HK$5,286 million is expected to be recognised as revenue after one year (2023: HK$46 million was expected to be recognised as revenue within one year).