Page 100 - 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 2023

19. FINANCIAL INSTRUMENTS (Continued)

f) Price risk (Continued)

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 2023, with all other
variables held constant, would increase/decrease the Group’s fair value reserve and capital by
HK$213,000 (HK$224,000).

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 the council members during the years ended 31 December 2023 and 2022.

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98 HKAM Annual Report 2024