Page 90 - 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

2. BASIS OF PREPARATION AND MATERIAL ACCOUNTING POLICY INFORMATION (Continued)

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 as effective hedge a net investment in a foreign operation which are
recognised in other comprehensive income.

Non-monetary assets and liabilities measured in terms of historical cost in a foreign currency are
translated using the foreign exchange rates ruling at the transaction dates. Non-monetary
assets and liabilities denominated in foreign currencies stated at fair value are translated using
the foreign exchange rates ruling at the dates the fair value was measured.

The functional and presentation currency of the Academy is Hong Kong dollars.

r) Government grants

A government grant is recognised when there is reasonable assurance that it will be received
and that the Group will comply with the conditions attached to it. Grants that compensate the
Group for expenses or losses already incurred are recognised as other operating income on a
systematic basis in the same periods in which the expenses are incurred. Grants that
compensate the Group for the acquisition of an asset are presented by deducting them from the
acquisition cost of the related asset.

3. CHANGES IN ACCOUNTING POLICIES

The Academy has applied the following new and amendments to HKFRSs issued by the HKICPA to
these consolidated financial statements for the first time, which are mandatorily effective for the
Group’s financial annual period beginning on or after 1 January 2023:

HKFRS 17 and related amendments Insurance Contracts
Amendments to HKAS 1 and HKFRS Disclosure of Accounting Policies
Practice Statement 2
Amendments to HKAS 8 Definition of Accounting Estimates
Amendments to HKAS 12 Deferred Tax related to Assets and Liabilities arising from
a Single Transaction
Amendments to HKAS 12 International Tax Reform - Pillar Two Model Rules

The application of the new and amendments to HKFRSs in the current year has had no material
effect on the Group’s financial positions and performance for the current and prior years and/or on the
disclosures set out in these consolidated financial statements.

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88 HKAM Annual Report 2024