Page 76 - Annual Report

HONG KONG ACADEMY OF MEDICINE
香 港 醫 學 專 科 學 院
香港醫學專科學院
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

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 continuing uncertainties around the COVID-19 pandemic for the first half of 2022 but
gradually retreated in the second half.

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 consolidated financial
statements.

b) Basis of preparation of the consolidated financial statements

The consolidated financial statements for the year ended 31 December 2022 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 consolidated 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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74 HKAM Annual Report 2023