Page 98 - 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)

b) Liquidity risk (Continued)

Contractual undiscounted
cash outflow
Total Carrying
Within contractual amount
1 year or undiscounted at 31
on demand cash flow December
HK$ HK$ HK$

For the year ended 31 December 2023

Non-derivative financial liabilities
Accruals and other payables 10,981,738 10,981,738 10,981,738

For the year ended 31 December 2022

Non-derivative financial liabilities
Accruals and other payables 7,506,425 7,506,425 7,506,425
c) Interest rate risk

The Group is exposed to interest rate risk only to the extent that it earns bank interest on cash
and deposits.

The effective interest rates per annum relating to cash at bank and time deposits at the end of
the reporting period ranges from 0.01% to 5.19% (2022: 0.01% to 4.85%) for the Group.

Sensitivity analysis

At 31 December 2023, it is estimated that a general increase/decrease of 100 basis points in
interest rates, with all other variables held constant, would increase/decrease the Group’s
surplus for the year and increase/decrease the Group’s general fund by approximately
HK$835,000 (2022: HK$686,000). Other components of equity would not be affected (2022:
HK$Nil) by the changes in interest rates.

The sensitivity analysis above has been determined assuming that the change in interest rates
had occurred at the end of the reporting period and had been applied to the exposure to interest
rate risk for financial instruments in existence at that date. The 100 basis point increase
represents management’s assessment of a reasonably possible change in interest rates over
the period until the end of next reporting period. The analysis is performed on the same basis for
2022.

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96 HKAM Annual Report 2024