Page 89 - Annual Report

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

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

g) Credit losses and impairment of assets (Continued)

(i) Credit losses from financial instruments (Continued)

Write-off policy (Continued)

Subsequent recoveries of an asset that was previously written off are recognised as a
reversal of impairment in profit or loss in the period in which the recovery occurs.

(ii) Impairment of other non-current assets

Assets are tested for impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable.

Internal and external sources of information are reviewed at the end of each reporting
period to identify indications that plant and equipment including right-of-use assets may
be impaired or, an impairment loss previously recognised no longer exists or may have
decreased.

If any such indication exists, the asset’s recoverable amount is estimated:

– Calculation of recoverable amount

The recoverable amount of an asset is the greater of its fair value less costs of
disposal and value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the
asset. Where an asset does not generate cash inflows largely independent of those
from other assets, the recoverable amount is determined for the smallest group of
assets that generates cash inflows independently (i.e. a cash-generating unit).

– Recognition of impairment losses

An impairment loss is recognised in profit or loss if the carrying amount of an asset,
or the cash-generating unit to which it belongs, exceeds its recoverable amount.
Impairment losses recognised in respect of cash-generating units are allocated to
reduce the carrying amount of the assets in the unit (or group of units) on a pro rata
basis, except that the carrying value of an asset will not be reduced below its
individual fair value less costs of disposal (if measurable) or value in use (if
determinable).

– Reversals of impairment losses

An impairment loss is reversed if there has been a favourable change in the
estimates used to determine the recoverable amount.

A reversal of an impairment loss is limited to the asset’s carrying amount that would
have been determined had no impairment loss been recognised in prior years.
Reversals of impairment losses are credited to profit or loss in the year in which the
reversals are recognised.

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香港醫學專科學院 2025 年度報告