Financial Report 2019

Notes to the Consolidated Financial Statements 合併財務報表附註 The University of Hong Kong 香港大學 103 Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below: (i) D e p r e c i a t i o n o f p r o p e r t y , p l a n t a n d equipment and amortisation of intangible assets The Group determines the estimated useful lives and related depreciation charges for property, plant and equipment and amortisation costs for intangible assets. Management will revise the depreciation charges and amortisation costs where useful lives are different from previously estimated. (ii) Recoverability of receivables The Group makes provision for impairment of accounts receivable based on an assessment of recoverability of the accounts receivable. Provisions are applied to accounts receivable where events or changes in circumstances indicate that the balances may not be collectible. The identification of impairment of receivables requires the use of judgement and estimates. Where the expectations are different from the original estimates, such differences will have impact on the carrying value of receivables and impairment of receivables is recognised in the year in which such estimates have been changed. 持續的評估作出的估計和判斷乃根據過往 經驗及其他因素，包括對未來作出合理情 況的期望。 本機構對於未來均作出估計和假設。按定 義所得出之會計估計難免偏離實際結果。 有重大可能使下個財政年度的資產及負債 面值作出重大調整之估計及判斷詳述如 下： (i) 物業、機器及設備之折舊及無 形資產之攤銷 本機構以預計使用年限以計算物 業、機器及設備之折舊機器及設備 之折舊及無形資產之攤銷。如使用 年限未能與事實相符，管理層會修 訂有關折舊及攤銷開支。 (ii) 可收回的應收賬項 本機構根據應收賬項可收回數額之 評估而計提應收賬項減值準備。當 有任何事件發生或環境變化，顯示 賬項可能無法收回時，便會確認減 值準備。鑑別應收賬項減值時需要 運用判斷及估計。當預期與當初估 計不同時，而有關差異會影響應收 賬項的賬面值，應收賬項的減值會 於該項估計改變的年度確認。 35. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS 主要會計估計及判斷 Notes to the Consolidated Financial Statements 合併財務報表附註 2019 Financial Report 二零一九財務報告 104 35. CRI T ICAL ACCOUNT ING EST IMATES AND JUDGEMENTS – Cont’d 主要會計估計及判斷－續 (ii) Recoverability of receivables – Cont’d Within accounts receivable, there is a receivable relating to a hospital project in Mainland China where the expected repayment profile extends over several accounting periods. Management has performed an assessment on the recoverability of the receivable and considered no impairment is necessary on such receivable as at 30 June 2019. Judgement has been made in estimating the timing of cash flows and an appropriate discount rate. (iii) Valuation of investments The fair values of financial instruments traded in active markets are based on quoted bid prices at the end of each reporting period. The fair values of financial instruments that are not traded in an active market, which include hedge funds and structured deposits are determined using established valuation techniques. 36. CAPITAL MANAGEMENT 資本管理 The Group’s primary objective of capital management is to safeguard the Group’s ability to continue as a going concern to provide tertiary education and research, and to maintain an optimal capital structure to reduce the cost of capital. The Group manages its capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of its activities. (ii) 可收回的應收賬項－續 其中一項應收賬項與一項預期還款 時間延伸至數個會計年度的中國內 地醫院項目有關。管理層對應收賬 項的可收回性進行了評估，並認為 不需要對二零一九年六月三十日的 應收賬項進行減值。管理層已作出 會計判斷以估計現金流量的時序和 適當的折現率。 (iii) 投資估值 在活躍市場買賣的金融工具之公平 值根據每個報告期末的市場報價列 賬。 沒有活躍市場買賣的金融工具，如 對沖基金及結構性存款，其公平值 根據既定的估值技術釐定。 本機構的資本管理宗旨是保障本機構有能 力持續經營，以提供高等教育及科研，並 維持最佳資本結構，以減低資本成本。 本機構因應經濟情况的變化和其活動的風 險特徵來管理其資本結構並作出相應調 整。