Page 99 - Annual Report

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

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 2022,
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$224,000 respectively (2021:
HK$nil and HK$247,000 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 2022 and 2021.

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香港醫學專科學院 2023 年度報告 97