Page 88 - Annual Report

HONG KONG ACADEMY OF MEDICINE
學
學
港
科
院
專
醫
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)

o) Related parties (Continued)

b) An entity is related to the Academy if any of the following conditions applies:
(Continued)

vi) The entity is controlled or jointly controlled by a person identified in (a).

vii) A person identified in (a)(i) has significant influence over the entity or is a
member of the key management personnel of the entity (or of a parent of
the entity).

viii) The entity, or any member of a group of which it is a part, provides key
management personnel services to the Group or to the Group’s parent.

Close members of the family of a person are those family members who may be
expected to influence, or be influenced by, that person in their dealings with the entity.

p) Employee benefits

i) Short term employee benefits and contributions to defined contribution retirement
plans

Salaries, annual bonuses, paid annual leave, contributions to defined contribution
plans and the cost of non-monetary benefits are accrued in the year in which the
associated services are rendered by employees. Where payment or settlement is
deferred and the effect would be material, these amounts are stated at their
present values.

Contributions to the Mandatory Provident Funds as required under the Hong Kong
Mandatory Provident Fund Schemes Ordinance are charged to the income and
expenditure account.

ii) Termination benefits

Termination benefits are recognised when, and only when, the Group
demonstrably commits itself to terminate employment or to provide benefits as a
result of voluntary redundancy by having a detailed formal plan which is without
realistic possibility of withdrawal.

q) Translation of foreign currencies

Foreign currency transactions during the year are translated at the foreign exchange
rates ruling at the transaction dates. Monetary assets and liabilities denominated in
foreign currencies are translated at the foreign exchange rates ruling at the end of the
reporting period. Exchange gains and losses are recognised in profit or loss, except
those arising from foreign currency borrowings used to hedge a net investment in a
foreign operation which are recognised in other comprehensive income.

21

86 HKAM Annual Report 2023