Page 65 - Annual Report

HONG KONG ACADEMY OF MEDICINE
香港醫學專科學院
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020

1. STATUS OF THE ACADEMY

The Academy was established as a body corporate under the Hong Kong Academy of
Medicine Ordinance on 1 August 1992. The principal activities of the Academy are to promote
and advance the science of medicine by education and exchange of information as well as to
improve the standard of local health care. The Academy has its registered office and principal
place of business at 99 Wong Chuk Hang Road, Aberdeen, Hong Kong.

2. SIGNIFICANT EVENTS IN THE CURRENT REPORTING PERIOD

The outbreak of the 2019 Novel Coronavirus has grown into a large-scale, multi-country
epidemic producing a challenging situation for all industries and society generally. The Group
has assessed the overall impact of the situation on the entirety of its operations and taken all
possible effective measures to limit the adverse effects of the rapidly spreading virus on
people and activities.

The financial position and performance of the Group were affected in different aspects,
including reduction in entrance fees and other revenue during the year ended 31 December
2020.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a) Statement of compliance

These financial statements have been prepared in accordance with all applicable Hong
Kong Financial Reporting Standards (“HKFRSs”), which collective term includes all
applicable individual Hong Kong Financial Reporting Standards, Hong Kong Accounting
Standards (“HKASs”) and Interpretations issued by the Hong Kong Institute of Certified
Public Accountants (“HKICPA”) and accounting principles generally accepted in Hong
Kong. A summary of the significant accounting policies adopted by the Academy and its
structured entity (together referred to as the Group”) is set out below.

The HKICPA has issued certain new and revised HKFRSs that are first effective or
available for early adoption for the current accounting period of the Group. Note 4
provides information on any changes in accounting policies resulting from initial
application of these developments to the extent that they are relevant to the Group for
the current and prior accounting periods reflected in these financial statements.

b) Basis of preparation of the financial statements

The consolidated financial statements for the year ended 31 December 2020 comprise
the Academy and The Hong Kong Academy of Medicine Foundation Fund which is a
structured entity of the Academy.

The measurement basis used in the preparation of the financial statements is the
historical cost basis except that the following assets are stated at their fair value as
explained in the accounting policies set out below:

- financial instruments classified as investments in equity instruments designated at
fair value through other comprehensive income (see note 3(h));

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香港醫學專科學院 2021 年度報告 63