Page 92 - Annual Report

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

10. PROPERTY, PLANT AND EQUIPMENT (Continued)

The Academy entered into an agreement with the Hong Kong Special Administrative Region
Government for grant by Private Treaty of Aberdeen Inland Lot No. 414 for a term of 50 years
less 3 days with effect from 1 July 1997 and on which the headquarters of the Academy were
built. The Academy is required to pay an amount equal to 3% of the rateable value per annum,
which has been charged to the income and expenditure account.

11. INTEREST IN A SPECIAL PURPOSE ENTITY

Details of the special purpose entity are as follows:

Proportion of
Place of ownership
Form of incorporation interest
Name of the special business and Principal held by
purpose entity structure operation activity Academy

The Hong Kong Incorporated Hong Kong Fund raising and 100%
Academy of Medicine investment
Foundation Fund management

12. INVESTMENTS IN EQUITY INSTRUMENTS DESIGNATED AT FAIR VALUE THROUGH
OTHER COMPREHENSIVE INCOME

2022 2021
HK$ HK$

Investments designated at FVTOCI:
- Equity securities listed in Hong Kong 4,483,002 4,934,040

At 31 December 2022, the amounts comprise equity securities listed in Hong Kong of
HK$4,483,002 (2021: HK$4,934,040) that are carried at fair value. These investments are not
held for trading, instead, they are held for long-term strategic purposes. The council members
have elected to designate these investments in equity instruments as at FVTOCI as they
believe that recognising short-term fluctuations in these investments’ fair value in profit or loss
would not be consistent with the Academy’s strategy of holding these investments for
long-term purposes and realising their performance potential in the long run.

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90 HKAM Annual Report 2023