Page 84 - Annual Report

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

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

g) Credit losses and impairment of assets (Continued)

(ii) Impairment of other non-current assets (Continued)

– Reversals of impairment losses

An impairment loss is reversed if there has been a favourable change in the
estimates used to determine the recoverable amount.

A reversal of an impairment loss is limited to the asset’s carrying amount
that would have been determined had no impairment loss been recognised
in prior years. Reversals of impairment losses are credited to profit or loss in
the year in which the reversals are recognised.

h) Other financial assets

Investments other than equity investments

Non-equity investments held by the Academy are classified as fair value through profit or
loss (FVTPL) when the contractual cash flows of the investment do not represent solely
payments of principal and interest. Changes in the fair value of the investment (including
interest) are recognised in profit or loss.

Equity investments

An investment in equity securities is classified as FVTPL unless the equity investment is
not held for trading purposes and on initial recognition of the investment the Academy
makes an irrevocable election to designate the investment at fair value through other
comprehensive income (FVTOCI) (non-recycling) such that subsequent changes in fair
value are recognised in other comprehensive income. Such elections are made on an
instrument-by-instrument basis, but may only be made if the investment meets the
definition of equity from the issuer’s perspective. Where such an election is made, the
amount accumulated in other comprehensive income remains in the fair value reserve
(non-recycling) until the investment is disposed of. At the time of disposal, the
attributable amount accumulated in the fair value reserve (non-recycling) is transferred
to general fund. It is not recycled through profit or loss.

Dividends from an investment in equity securities, irrespective of whether classified as at
FVTPL or FVTOCI, are recognised in profit or loss as other income in accordance with
the policy set out in note 3(n).

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82 HKAM Annual Report 2023