Page 80 - Annual Report

HONG KONG ACADEMY OF MEDICINE
香港醫學專科學院
專
學
學
醫
香
院
科
港
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

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

A government grant is recognised in the statement of financial position initially as
deferred income when there is reasonable assurance that it will be received and that the
Group will comply with the conditions attached to it. Grants that compensate the Group
for expenses incurred are recognised as other operating income on a systematic basis
in the same periods in which the expenses are incurred. Grants that compensate the
Group for the acquisition of an asset are presented by deducting them from the
acquisition cost of the related asset.

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 2021 for the preparation of the consolidated financial
statements:

Amendments to HKFRS 9, HKAS 39 Interest Rate Benchmark Reform – Phase 2
HKFRS 7, HKFRS 4 and HKFRS 16
Amendments to HKFRS 16 Covid-19-Related Rent Concessions

In addition, the Academy has early applied the Amendment to HKFRS 16 Covid-19-Related
Rent Concessions beyond 30 June 2021.

The application of amendments to HKFRSs 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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78 HKAM Annual Report 2022