Page 96 - 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

16. RESERVE AND FUNDS (Continued)

The Academy (Continued)

Fair value reserve comprises the cumulative net change in the fair value of equity instruments
designated at FVTOCI held at the end of the reporting period and is dealt with in accordance with the
accounting policy in note 2(h). Funds received are accounted for in the Foundation fund which is
used exclusively for the establishment and use of the Academy at such time as the Academy shall
direct. General fund represents the cumulative surplus of the Academy.

17. CAPITAL MANAGEMENT

The Group defined all components of reserve and funds as “capital”. On this basis, the amount of
capital employed at 31 December 2023 was HK$99,384,740 (2022: HK$88,943,580).

The Group’s primary objectives when managing capital are to safeguard the Group’s ability to
continue as a going concern.

The Group’s capital structure is regularly reviewed and managed. Adjustments are made to the
capital structure in light of changes in economic conditions affecting the Group, to the extent that
these do not conflict with the Council’s fiduciary duties towards the Group or the requirements of the
Hong Kong Academy of Medicine Ordinance.

The Group was not subject to externally imposed capital requirements in either the current or prior
year.

18. COMMITMENTS

Lease commitment

The Academy as lessor

The Academy’s total future minimum lease payments under non-cancellable operating leases are
receivable as follows:

2023 2022
HK$ HK$

Within 1 year 378,000 445,500
After 1 year but within 5 years 67,500 486,000

445,500 931,500

The Academy leases out certain areas of its headquarter under operating leases. None of the leases
includes contingent rentals.

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94 HKAM Annual Report 2024