Financial Report 2021

Notes to the Consolidated Financial Statements 合併財務報表附註 The University of Hong Kong 香港大學 99 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) Depreciation of property, plant and 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. 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 2021. Judgement has been made in estimating the timing of cash flows and an appropriate discount rate. 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。 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，並認為不需要對二零二一 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。 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 2021 Financial Report 二零二一財務報告 100 (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 alternative investments are determined using established valuation techniques. (iv) Lease term and discount rate determination In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). Potential future cash outflows have not been included in the lease liability because it is not reasonably certain that the leases will be extended (or not terminated). The assessment is reviewed if a significant event or a significant change in circumstances occurs which affects this assessment and that is within the control of the lessee. In determining the discount rate, the Group is required to exercise considerable judgement in relation to determine the discount rate taking into account the nature of the underlying assets and the terms and conditions of the leases, at both the commencement date and the effective date of the modification. (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，如另類 投資，其公平值根據既定的估值技術釐 定。 (iv) 釐定租約年期及貼現率 於釐定租約年期時，管理層會考慮引發 行使延長租約選擇權或不行使終止租約 選擇權的經濟動機的所有事實及情況。 延長租約選擇權（或終止租約選擇權後 的時期）僅於合理肯定租約將會延長（或 不會終止）時計入租約年期。由於無法 合理肯定租約將會延長（或不會終止）， 故此潛在未來現金流出並無計入租賃負 債。倘因發生重大事件或情況出現重大 改變而影響評估，並於承租人掌控之 中，則須檢討有關評估。 在釐定貼現率時，機構須於租賃開始日 期及變動生效日期，考慮相關資產的性 質與該租賃的條款及條件，就釐定貼現 率作出重大判斷。 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。 35. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS – Cont’d 主要會計估計及判斷－續 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.