Page 78 - 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

1. STATUS OF THE ACADEMY

The Academy was established as a body corporate under the Hong Kong Academy of Medicine
Ordinance on 1 August 1992. The principal activities of the Academy are to promote and advance the
science of medicine by education and exchange of information as well as to improve the standard of
local health care. The Academy has its registered office and principal place of business at 99 Wong
Chuk Hang Road, Aberdeen, Hong Kong.

2. BASIS OF PREPARATION AND MATERIAL ACCOUNTING POLICY INFORMATION

a) Statement of compliance

These financial statements have been prepared in accordance with all applicable Hong Kong
Financial Reporting Standards (“HKFRSs”), which collective term includes all applicable
individual Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards
(“HKASs”) and Interpretations issued by the Hong Kong Institute of Certified Public Accountants
(“HKICPA”) and accounting principles generally accepted in Hong Kong. Material accounting
policy information adopted by the Academy and its structured entity (together referred to as the
Group”) is set out below.

The HKICPA has issued certain new and amendments to HKFRSs which are mandatorily
effective or available for early adoption for the current accounting period of the Group. Note 4
provides information on any changes in accounting policies resulting from initial application of
these developments to the extent that they are relevant to the Group for the current accounting
period reflected in these consolidated financial statements.

b) Basis of preparation of the financial statements

The consolidated financial statements for the year ended 31 December 2023 comprise the
Academy and The Hong Kong Academy of Medicine Foundation Fund which is a structured
entity of the Academy.

The measurement basis used in the preparation of the consolidated financial statements is the
historical cost basis except that the following assets are stated at their fair value as explained in
the accounting policies set out below:

- financial instruments classified as investments in equity instruments designated at fair
value through other comprehensive income (see note 2(h));

The preparation of consolidated financial statements in conformity with HKFRSs requires
management to make judgements, estimates and assumptions that affect the application of
policies and reported amounts of assets, liabilities, income and expenses. The estimates and
associated assumptions are based on historical experience and various other factors that are
believed to be reasonable under the circumstances, the results of which form the basis of
making the judgements about carrying values of assets and liabilities that are not readily
apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimate is revised if the revision
affects only that period, or in the period of the revision and future periods if the revision affects
both current and future periods.

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76 HKAM Annual Report 2024