Page 90 - Annual Report
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HONG KONG ACADEMY OF MEDICINE
                  香港醫學專科學院
                    港
                      醫
                              學
                            科
                  香
                                院
                          專
                        學
                  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                  FOR THE YEAR ENDED 31 DECEMBER 2021




                  19.  FINANCIAL INSTRUMENTS (Continued)

                      f)   Price risk

                           The Group is exposed to equity price changes arising from listed equity investments.
                           The  Group’s  listed  investments  are  listed  on  recognised  stock  exchange.  Listed
                           investments held in the  investments in equity instruments designated at FVOCI have
                           been chosen based on their longer term growth potential and are monitored regularly for
                           performance against expectations.

                           The Council monitors the market price risk of the investments individually and estimated
                           that a 5% increase/decrease in market prices of equity securities at 31 December 2021,
                           with all other variables held constant, would decrease/increase the Group’s deficit for
                           the year (and increase/decrease the Group’s general fund) and increase/decrease the
                           Group’s other components of reserve by HK$nil and HK$247,000 respectively (2020:
                           HK$nil and HK$274,000 respectively).


                  20.  CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

                      The  following  are  the  key  assumptions  concerning  the  future,  and  other  key  sources  of
                      estimation uncertainty at the end of the reporting period, that have a significant risk of causing
                      a material adjustment to the carrying amounts of assets and liabilities within the next reporting
                      period.

                      a)   Useful lives of property, plant and equipment

                           The Group determines the estimated useful lives and related depreciation charges for its
                           items  of  property,  plant  and  equipment.  This  estimate  is  based  on  the  historical
                           experience of the actual useful lives of items of property, plant and equipment of similar
                           nature and functions. Management will revise the depreciation charge where useful lives
                           are  different  to  the  ones  previously  estimated,  and  it  will  write-off  or  write-down
                           technically obsolete or non-strategic assets that have been abandoned or sold.

                      b)   Measurement of the ECLs for receivables

                           The  measurement  of  the  expected  loss  allowance  for  receivables  is  an  area  that
                           requires the use of complex models and significant assumptions about future economic
                           conditions  and  credit  behavior  (the  likelihood  of  debtors  defaulting  and  the  resulting
                           losses). Further details are set out in note 19(a) Credit Risk.


                  21.  RELATED PARTY TRANSACTIONS

                      In  addition  to  the  transactions  and  balances  disclosed  elsewhere  in  these  financial
                      statements, the Group entered into the following material related party transaction:

                      Transactions with key management personnel

                      All members of key management personnel are the council members of the Academy, and no
                      remuneration was paid to them during the years ended 31 December 2021 and 2020.




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