Page 102 - Annual Report

HONG KONG ACADEMY OF MEDICINE HONG KONG ACADEMY OF MEDICINE
香 香港醫學專科學院 香 香港醫學專科學院
醫
港
學
學
科
專
院
醫
學
專
學
科
港
院
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024 FOR THE YEAR ENDED 31 DECEMBER 2024

19. FINANCIAL INSTRUMENTS (Continued) 19. FINANCIAL INSTRUMENTS (Continued)

b) Liquidity risk (Continued) d) Currency risk

Contractual undiscounted The Group’s functional currency is Hong Kong dollars. The Group is exposed to currency risk
cash outflow through cash and bank balances denominated in Renminbi (“RMB”) and United States dollars
Total Carrying (“USD”). As the Hong Kong dollar (“HKD”) is pegged to the USD, the Group does not expect any
Within contractual amount significant movements in the USD/HKD exchange rate. At 31 December 2024, it is estimated
1 year or undiscounted at 31 that a general increase or decrease in 5% of exchange rates, with all variables held constant,
on demand cash flow December would increase/decrease the Group’s surplus for the year and increase/decrease the Group’s
HK$ HK$ HK$ general fund by approximately HK$16,000 (2023: HK$17,000).

As at 31 December 2024 e) Fair values measurement

Non-derivative financial liabilities Fair value hierarchy
Accruals and other payables 11,515,647 11,515,647 11,515,647
The following table presents the fair value of the Group’s financial instruments measured at the
As at 31 December 2023 end of the reporting period on a recurring basis, categorised into the three-level fair value
hierarchy as defined in HKFRS 13, Fair value measurement. The level into which a fair value
Non-derivative financial liabilities measurement is classified is determined with reference to the observability and significance of
Accruals and other payables 10,981,738 10,981,738 10,981,738 the inputs used in the valuation technique as follows:

c) Interest rate risk • Level 1 valuations: Fair value measured using only Level 1 inputs i.e. unadjusted quoted
prices in active markets for identical assets or liabilities at the measurement date.
The Group is exposed to interest rate risk only to the extent that it earns bank interest on cash
and deposits. • Level 2 valuations: Fair value measured using Level 2 inputs i.e. observable inputs which
fail to meet Level 1, and not using significant unobservable inputs. Unobservable inputs
The effective interest rates per annum relating to cash at bank and time deposits at the end of are inputs for which market data are not available.
the reporting period ranges from 0.01% to 4.24% (2023: 0.01% to 5.19%) for the Group.
• Level 3 valuations: Fair value measured using significant unobservable inputs.
Sensitivity analysis
Fair value as at Valuation Significant
At 31 December 2024, it is estimated that a general increase/decrease of 100 basis points in 31 December 31 December Fair value techniques and unobservable
interest rates, with all other variables held constant, would increase/decrease the Group’s Financial assets 2024 2023 hierarchy key inputs inputs
HK$

HK$
surplus for the year and increase/decrease the Group’s general fund by approximately
HK$1,102,000 (2023: HK$835,000). Other components of equity would not be affected (2023: Investments in equity
HK$Nil) by the changes in interest rates. instruments designated at

FVTOCI Quoted bid prices
The sensitivity analysis above has been determined assuming that the change in interest rates Listed equity securities 5,891,406 4,261,842 Level 1 in an active market N/A
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 At 31 December 2024 and 2023, all financial instruments measured at fair value fall into level 1
represents management’s assessment of a reasonably possible change in interest rates over of the fair value hierarchy described above.
the period until the end of next reporting period. The analysis is performed on the same basis for
2023. f) Price risk

The Group is exposed to equity price changes arising from listed equity investments. The
Group’s listed investments are listed on recognised stock exchange. Listed investments held in
the investments in equity instruments designated at FVOCI have been chosen based on their
longer term growth potential and are monitored regularly for performance against expectations.

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100 HKAM Annual Report 2025