Page 104 - 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
專
科
學
港
醫
學
院
科
學
院
專
港
醫
學
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) 22. ACADEMY’S STATEMENT OF FINANCIAL POSITION

f) Price risk (Continued) Note 2024 2023
HK$ HK$
The Council monitors the market price risk of the investments individually and estimated that a
5% increase/decrease in market prices of equity securities at 31 December 2024, with all other Non-current assets
variables held constant, would increase/decrease the Group’s fair value reserve and capital by Property, plant and equipment 12,016,205 13,612,382
HK$295,000 (HK$213,000). Investments in equity instruments designated
at fair value through other comprehensive
income 5,891,406 4,261,842
20. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS 17,907,611 17,874,224
Current assets
The following are the key assumptions concerning the future, and other key sources of estimation Inventories – general merchandise 344,344 389,367
uncertainty at the end of the reporting period, that have a significant risk of causing a material Prepayments, deposits and other receivables 10,743,320 9,170,932
adjustment to the carrying amounts of assets and liabilities within the next reporting period. Amount due from a special purpose entity 19,200 19,010
Time deposits 31,706,871 44,000,000
a) Useful lives of property, plant and equipment Cash and cash equivalents 62,255,156 28,308,065
105,068,891 81,887,374
The Group determines the estimated useful lives and related depreciation charges for its items Current liabilities
of property, plant and equipment. This estimate is based on the historical experience of the Deferred income 28,680,031 3,223,902
actual useful lives of items of property, plant and equipment of similar nature and functions. Accruals and other payables 11,497,649 10,964,238
Management will revise the depreciation charge where useful lives are different to the ones (40,177,680) (14,188,140)
previously estimated, and it will write-off or write-down technically obsolete or non-strategic
assets that have been abandoned or sold. Net current assets 64,891,211 67,699,234

b) Measurement of the ECLs for receivables Non current liabilities
Deferred income (1,256,001) (1,876,632)
The measurement of the expected loss allowance for receivables is an area that requires the
use of complex models and significant assumptions about future economic conditions and credit Net assets 81,542,821 83,696,826
behavior (the likelihood of debtors defaulting and the resulting losses). Further details are set
out in note 19(a) Credit Risk. Reserve and funds
Fair value reserve 16 (816,672) (2,446,236)
General fund 82,359,493 86,143,062

21. RELATED PARTY TRANSACTIONS 81,542,821 83,696,826

In addition to the transactions and balances disclosed elsewhere in these financial statements, the
Group entered into the following material related party transaction: Approved and authorised for issue by the Council on 17 July 2025.

Transactions with key management personnel
On behalf of the Council
All members of key management personnel are the council members of the Academy, and no
remuneration was paid to the council members during the years ended 31 December 2024 and 2023.

Prof. Philip Kam-tao Li Prof. Eric Wai-Choi Tse
President Honorary Treasurer

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102 HKAM Annual Report 2025