by OSFI. The ICA also requires an insurance company to notify OSFI of the declaration of a dividend at least 15 days prior to the date fixed for its payment. Similarly, the ICA prohibits the purchase for cancellation of any shares issued by an insurance company or the redemption of any redeemable shares or other similar capital transactions, if there are reasonable grounds for believing that the company does not have adequate capital and adequate and appropriate forms of liquidity or the payment would cause the company to be in contravention of any regulation made under the ICA respecting the maintenance of adequate capital and adequate and appropriate forms of liquidity, or any direction made to the company by OSFI. These latter transactions would require the prior approval of OSFI. The ICA requires Canadian insurance companies to maintain adequate levels of capital at all times. Since MFC is a holding company that conducts all of its operations through regulated insurance subsidiaries (or companies owned directly or indirectly by these subsidiaries), its ability to pay future dividends will depend on the receipt of sufficient funds from its regulated insurance subsidiaries. These subsidiaries are also subject to certain regulatory restrictions under laws in Canada, the United States and certain other countries that may limit their ability to pay dividends or make other upstream distributions. Note 14 Revenue from Service Contracts The Company provides investment management services, transaction processing and administrative services and distribution and related services to proprietary and third-party investment funds, retirement plans, group benefit plans, institutional investors and other arrangements. The Company also provides real estate management services to tenants of the Company’s investment properties. The Company’s service contracts generally impose single performance obligations, each consisting of a series of similar related services for each customer. The Company’s performance obligations within service arrangements are generally satisfied over time as the customer simultaneously receives and consumes the benefits of the services rendered, measured using an output method. Fees typically include variable consideration and the related revenue is recognized to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is subsequently resolved. Asset based fees vary with asset values of accounts under management, subject to market conditions and investor behaviors beyond the Company’s control. Transaction processing and administrative fees vary with activity volume, also beyond the Company’s control. Some fees, including distribution fees, are based on account balances and transaction volumes. Fees related to account balances and transaction volumes are measured daily. Real estate management service fees include fixed portions plus recovery of variable costs of services rendered to tenants. Fees related to services provided are generally recognized as services are rendered, which is when it becomes highly probable that no significant reversal of cumulative revenue recognized will occur. The Company has determined that its service contracts have no significant financing components because fees are collected monthly. The Company has no significant contract assets or contract liabilities. The following tables present revenue from service contracts by service lines and reporting segments as disclosed in note 20. Global Corporate For the year ended December 31, 2022 Asia Canada U.S. WAM and Other Total Investment management and other related fees $ 234 $ 242 $ 445 $ 3,079 $ (250) $ 3,750 Transaction processing, administration, and service fees 292 866 13 2,416 (8) 3,579 Distribution fees and other 143 43 76 868 (44) 1,086 Total included in other revenue 669 1,151 534 6,363 (302) 8,415 Revenue from non-service lines 789 275 (76) (13) (226) 749 Total other revenue $ 1,458 $ 1,426 $ 458 $ 6,350 $ (528) $ 9,164 Real estate management services included in net investment income $ 35 $ 136 $ 126 $ – $ 8 $ 305 Global Corporate For the year ended December 31, 2021 Asia Canada U.S. WAM and Other Total Investment management and other related fees $ 217 $ 230 $ 499 $ 3,198 $ (247) $ 3,897 Transaction processing, administration, and service fees 287 918 12 2,517 (11) 3,723 Distribution fees and other 251 20 65 799 (54) 1,081 Total included in other revenue 755 1,168 576 6,514 (312) 8,701 Revenue from non-service lines 941 168 1,248 (1) 75 2,431 Total other revenue $ 1,696 $ 1,336 $ 1,824 $ 6,513 $ (237) $ 11,132 Real estate management services included in net investment income $ 37 $ 126 $ 128 $ – $ 7 $ 298 198 | 2022AnnualReport | NotestoConsolidatedFinancialStatements