Page 78 - 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

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

q) Translation of foreign currencies (Continued)

Non-monetary assets and liabilities measured in terms of historical cost in a foreign
currency are translated using the foreign exchange rates ruling at the transaction dates.
Non-monetary assets and liabilities denominated in foreign currencies stated at fair
value are translated using the foreign exchange rates ruling at the dates the fair value
was measured.

The functional and presentation currency of the Academy is Hong Kong dollars.

r) Government grants

Government grants are recognised in the statement of financial position initially when
there is reasonable assurance that they will be received and that the Group will comply
with the conditions attaching to them. Grants that compensate the Group for expenses
incurred are recognised as income in profit or loss on a systematic basis in the same
periods in which the expenses are incurred. Grants that compensate the Group for the
cost of an asset are deducted from the carrying amount of the asset and consequently
are effectively recognised in profit or loss over the useful life of the asset by way of
reduced depreciation expense.

4. CHANGES IN ACCOUNTING POLICIES

The Academy has applied the Amendments to References to the Conceptual Framework in
HKFRS Standards and the following amendments to HKFRSs issued by the HKICPA to these
financial statements for the first time, which are mandatory effective for the annual period
beginning on or after 1 January 2020 for the preparation of the consolidated financial
statements:

Amendments to HKAS 1 and HKAS 8 Definition of Material
Amendments to HKFRS 3 Definition of a Business
Amendments to HKFRS 9, HKAS 39 and Interest Rate Benchmark Reform
HKFRS 7

The Academy has not applied any new standard or interpretation that is not yet effective for
the current accounting period.

The application of the Amendments to References to the Conceptual Framework in HKFRS
Standards and amendments to HKFRS in the current accounting period has had no material
effect on the amounts reported and/or disclosures set out in these consolidated financial
statements.

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76 HKAM Annual Report 2021