ͦ፽CONTENTS ̡‫ࢫ‬జѓ Treasurer§sReport 002 ዹͭࣨᅰ‫ࢪ‬జѓ ReportoftheIndependentAuditor 007 ၝΥ༟ପ‫ࠋ‬ව‫ڌ‬ ConsolidatedBalanceSheet 012 ၝΥϗ˕‫ڌ‬ ConsolidatedStatementofComprehensivee 014 ၝΥ༟‫ږ‬ഐቱᜊਗ‫ڌ‬ ConsolidatedStatementofChangesinFundBalances 016 ၝΥତ‫ݴږ‬ඎ‫ڌ‬ ConsolidatedStatementofCashFlows 017 ၝΥৌਕజ‫ڝڌ‬ൗ NotestotheConsolidatedFinancialStatements 018 ุᐶܸᅺ PerformanceIndicators 088 ̡‫ࢫ‬జѓTREASURER§SREPORT ᐼᚎ Overview ɚཧɓɘЇɚཧಂ‫݊ܓ‬ϓఱ‫ڢ‬ɭձ̂တᗭҙࣛՍٙɓϋf͉ࣧ‫މ‬ᅅज़ϓͭɧɤմϋdᑘ፬əዑ༨Όϋٙɓӻΐ‫ݺ‬ਗd̋੶ၾʔΝܵ΅٫ٙᑌᖩdԨ࿎ᜑɽኪٙϓఱձ୭ᜊdνО͟ɓ‫ה‬ʃ஝ᅼٙჇ൷઺ԃዚ࿴ᜊϓνʦ೯‫࢝‬Όࠦٙɽኪfঐ੄༺ϤԳᐶdྼϞ፠Ң‫ࡁ‬Ό᜗઺ᔖ‫ࡰ‬ձኪ͛εϋԸԔාрɢeೌӷւᘠe฀ᇖၚ׼dί઺ኪe‫޼‬Ӻձٝᗆᔷ୅ɪ৛Ӌՙ൳dɽ‫࢙̍ܓ‬f 2019/2020hasbeenayearofremarkableachievementsandmemorablemoments.TheUniversitycelebratedits30thanniversarywithaseriesofeventsthroughouttheyear,strengtheninglinkswithvariousstakeholdersandhighlightingtheUniversity§sachievementandtransformationfromamodestdistancelearninginstitutiontothefull-fledgeduniversitythatitistoday.Theseessesstemfromthehardwork,dedication,andabilityofallofourstaffandstudentsovermanyyearsandtheirpursuitofexcellenceandinclusivityinteaching,research,andknowledgetransfer. ‫މ‬əৣΥɽኪٙࣨː‫ݺ‬ਗdҢ‫ٙࡁ‬ৌਕഄଫϙί༺Ї‫ڗ‬ಂٙৌਕ̙ܵᚃ‫׌‬dˈՉ݊ஷཀ੽ᐄ༶ʕପ͛ତ‫ږ‬dၪܵ਄ੰٙ༟ପ‫ࠋ‬ව‫ڌ‬˸ʿɛʑձ༟ପҳ༟d੽Ͼ˕ܵɽኪྼስࠠᓃ೯‫࢝‬ഄଫfίɚཧɓɘϋdҢ‫ࡁ‬Ҫৌ݁ϋ‫ܓ‬ϋഐ˚ҷ‫މ‬ɞ˜ɧɤɓ˚dၾኪϋ‫޶‬ᄁd˸ආɓӉ̋੶ཫၑ஝ྌe༟๕ʱৣձৌਕ၍ଣfҷᜊʘ‫ܝ‬d͉ৌ݁ಂ‫ܓ‬ᔧႊٙಂග‫މ‬ɤɖ‫˜ࡈ‬d͟ɚཧɓɘϋ̬˜ɓ˚Їɚཧɚཧϋɞ˜ɧɤɓ˚fϾৌਕజ‫ڌ‬ʕٙˢ༰ᅰο‫ۆ‬ᔧႊɤɚ‫˜ࡈ‬d͟ɚཧɓɞϋ̬˜ɓ˚Їɚཧɓɘϋɧ˜ɧɤɓ˚f TosupporttheUniversity§scoreactivities,ourfinancialstrategyisdesignedtodeliverlong-termfinancialsustainability,specificallybygeneratingcashfromoperations,maintainingahealthybalancesheet,andinvestinginpeopleandassetsthatunderpinthedeliveryoftheUniversity§sstrategicfocus.In2019,wechangedourfinancialyear-endto31stAugust,aligningitwiththeacademicyearinordertofurtherenhancebudgetplanning,resourceallocation,andfinancialstewardship.Asaresultofthechange,thecurrentfinancialperiodcoversaseventeen-monthperiodfrom1stApril2019to31stAugust2020,andparativefiguresinthefinancialstatementscoveratwelve-monthperiodfrom1stApril2018to31stMarch2019. Ң‫ࡁ‬ᘌࣸٙৌਕ஝ྌʿΌࠦٙࠬᎈ၍ଣdᜫҢ‫ࡁ‬ঐ੄уԴίவܵɮϾ٤‫ܿۃ‬኷ٙᐑྤɨdίɚཧɓɘЇɚཧಂ‫ܓ‬ʥঐ՟੻Ԅλٙৌਕุᐶfա౉׵ቇ‫ٙܓ‬ኪ͛ɛᅰᄣ‫ڗ‬d˸ʿϞࣖٙϓ͉છՓdɽኪ՟੻ʞᄂɓϵຬಥʩၝΥ዆᜗ޮቱf੽ᐄ༶ʕପ͛ٙତ‫މݴږ‬ɖᄂɘϵɧɤຬಥʩfණྠٙ༟ପଋ‫࠽‬ᄣ̋ϵʱʘɤʞᓃʞЇɧɤɖᄂɚɷɖϵʞɤຬಥʩf Ourrigorousfinancialplanning,coupledwithourthoroughriskmanagement,haveenabledustodeliversoundfinancialperformancein2019/2020againstthebackdropofprolongedandunprecedentedchallenges.TheUniversityhasbenefitedfromamoderateincreaseinstudentnumberswhileeffectivelycontrollingcostgrowth,andthishasresultedinHK$501.0millionconsolidatedoverallsurplus.CashflowfromoperationswereHK$709.3million.NetassetsoftheGroupincreasedby15.5%toHK$3,727.5million. 2019-2020ৌਕజѓFINANCIALREPORT 002 ̡‫ࢫ‬జѓTREASURER§SREPORT ˿ɛོႀٙણ݄ SomePositiveMeasures Ң‫ࡁ‬ίɚཧɓɘЇɚཧಂ‫ࠦܓ‬࿁ٙ຾᏶ձ݁‫ط‬ᐑྤ̂တܿ኷d͟׵ٟึਗᐗeɚཧɓɘ‫ًڿ‬ष‫ݭ‬षᖑ೯ձ຾᏶সৗd஢ε˙ࠦேπίʔᆽ֛‫׌‬fኋ၍νϤdɽኪٙɓʲЪ‫މ‬dʥ˸ኪ͛e઺ᔖ‫ࡰ‬ձ̹͏ɽ଺ٙ၅‫މ߀‬‫ࠅ࠯‬Ͻᅇd΋‫ܝ‬ଢ଼‫ࠇ‬ҳ༟ɚɷɖϵຬಥʩ౤ʺਿᓾண݄ձኜҿd˸˕ܵZoomൖৃʝਗ઺ኪdᒅ൯ԣᚐༀ௪ձԣ‫ޥ‬૶ᆎ؂ਕd੽Ͼ‫މ‬ኪ͛ձ઺ᔖ‫ࡰ‬౤ԶτΌሊ͛ٙࣧ෤ᐑྤdԨ‫މ‬ίϤಂග༾Ցৌ݁Ѣᗭٙኪ͛౤Զʿࣛٙ຾᏶౪пf Theeconomicandpoliticalenvironmentthatwefacedin2019/2020waschallenging,withuncertaintyonmanyfrontsdrivenbythesocialunrest,theCOVID-19outbreak,andtheeconomicrecession.Nevertheless,theUniversitycontinuesputtingitsstudents,staff,munityattheforefrontofallthatitdoes,andhasinvestedatotalofHK$27.0millioninupgradingitsinfrastructureandequipmentinordertosupportZoomteaching,procuringprotectivegearsandsterilizationservicesinordertoprovideasafeandhealthycampusenvironmentforstudentsandstaff,andassistingstudentswhohavesufferedfromfinancialhardshipduringthisperiodwithtimelyfinancialaids. ͉ࣧ࿁๟ͦᅺdᘱᚃίՉ௰బᅂᚤɢٙჯਹආБࠠɽҳ༟f‫࠰‬ಥʮකɽኪᒄ৵ึ਄ੰᚐଣኪ৫ਗ਼׵ɚཧɚཧϋୋ̬֙ක࿇dᅺႦɽኪ‫ߧ‬ɢϓ‫މ‬ჯ΋ᚐଣ਄ੰ઺ԃዚ࿴ٙӔːfኪ৫ɽᅽᅽ৷ɤɧᄴdணϞତ˾ʷٙ઺ኪ٤ගdܼ̍ᚐଣྼ᜕‫܃‬eၝΥ਄ੰྼ᜕‫܃‬e‫ي‬ଣ‫ط‬ᐕྼ᜕‫܃‬eतࣿ઺ԃʕːeኪ৫ึੀe‫޼‬ীᝂձ‫ݺ‬ਗኪ୦‫܃‬ഃf TheUniversitycontinuestomakesignificantinvestmentsinareaswhereitcanmakethegreatestimpact.TheOUHKJockeyClubInstituteofHealthcare(IOH),whichwillopeninthefourthquarterof2020,symbolizestheUniversity§mitmenttobeingaleadingproviderofnursingandhealthcareprogrammes.Thethirteen-storeyfacilityhasmodernspacesforteachingandlearning,includingtheNursingLaboratory,theComprehensiveHealthLaboratory,thePhysiotherapyLaboratory,theSpecialEducationCenter,theAcademyHallandSeminar,andtheActiveLearningClassroom,etc. ί‫࠰‬ಥ˸̮d͉ࣧ׵ɚཧɚཧϋ̬˜ၾၴᅅ̹ɛ͏ִ݁ձၴᅅኪ৫ᖦ‫ࠈ‬՘ᙄd΍Ν‫ͭܔ‬‫࠰‬ಥʮකɽኪ€ၴᅅ€˜ʮɽ€ၴᅅ™d݊ɽኪ೯‫ࠅࠠٙ࢝‬Ԣ೻຦fʮɽ€ၴᅅЦήɚɷʞϵलdਗ਼౤Զਖ਼ุྼ͜ሙ೻d‫މ‬ɽᝄਜٙɛʑ੃৅Ъ্̈ᘠf࣬ኽ՘ᙄdၴᅅִ̹݁ਗ਼‫ו‬ዄࣧ෤‫ܔ‬ண຾൬d͉ࣧ‫ࠋࠅ˴ۆ‬பᆽ‫ڭ‬อࣧՈ͉ࣧΝഃٙሙ೻઺ኪሯ९ʿ‫޼‬Ӻ˥̻fอࣧ෤ਗ਼̋੶ຽಥʘගٙ‫޼‬ӺΥЪձኪ͛ʹ‫ݴ‬f BeyondHongKong,theUniversityalsoenteredintoagreementsinApril2020withtheZhaoqingMunicipalGovernmentandZhaoqingUniversitytojointlyestablishTheOpenUniversityofHongKong(Zhaoqing)¨(OUHK(ZQ)©),markinganimportantmilestoneintheUniversity§sdevelopmentandadvancement.upyinganareaof2,500acres,OUHK(ZQ)willofferprofessionalandpracticalprogrammes,contributingtowardsthetalentdevelopmentintheGreaterBayArea¨(GBA©).ordingtotheagreements,theconstructioncostofthecampuswillbefundedbytheZhaoqinggovernment,whiletheUniversitywillmainlybetaskedwithensuringthatthequalityoftheacademicprogrammesandresearchattheZhaoqingcampusmeetsthestandardsoftheUniversity.ThenewcampuswillstrengthenresearchcooperationandstudentexchangebetweenHongKongandGuangdong. 003 ̡‫ࢫ‬జѓTREASURER§SREPORT ϗɝၾ˕̈ eandExpenditure ա౉׵ኪ͛ɛᅰٙቇ‫ܓ‬ᄣ‫ڗ‬dɤɖ‫ٙ˜ࡈ‬ၝΥϗɝ‫މ‬ɤɞᄂɚɷɓϵɚɤຬಥʩdՉʕɤɖᄂɓɷຬಥʩ‫މ‬ኪ൬ϗɝfίவԬ຾᏶ʔᖢ֛ࣛಂdҢ‫ࡁ‬ᔮ‫ٙێ‬ϗɝʿᖢ਄Ͼ‫ݴ‬ਗ༟‫̂ږ‬༃ٙ༟ପ‫ࠋ‬ව‫ڌ‬ᜫɽኪ̙˸ᎇዚᏐᜊdԘ஺ஈଣ‫߉‬೯ԫ΁d੽ϾϞԑ੄ࣛගЪ̈̀‫ٙࠅ‬ᐄ༶ሜ዆f Consolidatedefortheseventeen-monthperiodwasHK$1,821.2million,ofwhichHK$1,710.0millionwastuitionfeee,benefitingfrommoderategrowthinstudentnumbers.OurstrongrevenuestreamsandourstrongandliquidbalancesheethavecontributedtowardstheUniversity§sresilienceintheseuncertaintimes,andhaveenabledtheUniversitytomanagetheunexpectedovertheshortterm,providingtimefortheUniversitytomakethenecessaryoperatingadjustments. ᐄ༶ϓ͉ܲ๫ཫၑ੻˸ѼഛછՓfɚཧɓɘЇɚཧಂ‫ٙܓ‬ᐼᐄ༶ක˕‫މ‬ɤʞᄂ̬ɷ̬ϵʞɤຬಥʩf͉ࣧίɛɢ༟͉ɪҳ‫׳‬ɽඎ༟๕d઺ᔖ‫ࡰ‬ϓ͉‫މ‬ɤᄂʬɷɞϵɖɤຬಥʩdᘱᚃЦɽኪᐼᐄ༶ක˕ٙϵʱʘʬɤɘᓃɚ€ɚཧɓɞЇɓɘϋ‫ܓ‬jϵʱʘɖɤᓃɚfұᔚ൬͜‫މ‬ɘɷ̬ϵʞɤຬಥʩdЦᐼᐄ༶ක˕ٙϵʱʘʬᓃɓ€ɚཧɓɞЇɓɘϋ‫ܓ‬jϵʱʘʬᓃɘfٜટኪ͛ϓ͉ʿሙ೻઺ҿක˕ʱйၪܵ׵ʞɷɧϵɞɤຬಥʩʿɚɷɓϵɖɤຬಥʩdЦᐼᐄ༶ක˕ٙϵʱʘɧᓃʞ€ɚཧɓɞЇɓɘϋ‫ܓ‬jϵʱʘɧᓃʬʿϵʱʘɓᓃ̬€ɚཧɓɞЇɓɘϋ‫ܓ‬jϵʱʘɓᓃɞf Operatingcostshavebeenwellmanagedinlinewiththebudget.TotaloperatingexpenseswereHK$1,544.5millionin2019/2020.TheUniversityinvestsheavilyinhumancapital;staffingcostswereHK$1,068.7millionandcontinuedtorepresent69.2%(2018/2019:70.2%)oftheUniversity§stotaloperatingexpenses.DepreciationwasHK$94.5million,ountingfor6.1%(2018/19:6.9%)oftotaloperatingexpenses.DirectstudentcostsandcoursematerialsweremaintainedatHK$53.8millionandHK$21.7millionrespectively,representing3.5%(2018/19:3.6%)and1.4%(2018/19:1.8%)ofthetotaloperatingexpenses. ҳ༟ Investment ͟׵ɚཧɓɘ‫ًڿ‬ष‫ݭ‬षΌଢᖑ೯ኬ‫ږߧ‬ፄ̹ఙ੥ᆵdҢ‫ٙࡁ‬ҳ༟ଡ଼ΥΫజίɚཧɚཧϋୋɓ֙ቊաəࠠɽ࣒ұdҪಂ‫ڋܓ‬ಂ˸Ը՟੻ٙ‫ה‬Ϟҳ༟ϗूҁΌ‫̘כ‬fᎇ‫ܝ‬Їৌ݁ಂ‫͋ܓ‬d͟׵‫ה‬Ϟ˴‫ࠅ‬຾᏶᜗ྼ݄ৌ݁ձ஬࿆ᄱᕦ݁ഄd‫ږ‬ፄ̹ఙ੻˸੶‫ۊ‬ూ೤fΌଢ‫ږ‬ፄ̹ఙਗᐗd̉ᜑəɽኪίʔΝ༟ପᗳйeήਜձБุჯਹணໄεʩʷҳ༟ଡ଼Υٙࠠ‫׌ࠅ‬fኋ၍‫ږ‬ፄ̹ఙਗᐗdҢ‫ࡁ‬ίɚཧɓɘЇɚཧಂ‫ܓ‬ʥ፽੻ɚᄂʞɷɚϵʞɤຬಥʩٙл‫ࢹ‬ʿҳ༟ϗɝfவഅϗɝ̋ɪ຾੬‫ٙ׌‬ᐄ༶ତ‫ݴږ‬d‫މ‬Ң‫ٙࡁ‬ৌਕ༟๕౤Զə̙ఃձ‫ה‬ცٙ໾̂d˕ܵɽኪ‫ڗ‬ಂ೯‫࢝‬f Ourinvestmentportfoliohasencounteredasignificantsetbackinthefirstquarterof2020duetothefinancialmarketcrashcausedbytheCOVID-19globaloutbreak,pletelywipedoutalltheinvestmentgainsmadesincethebeginningoftheperiod.Thiswasfollowedbyastrongrecoverythroughthefinancialyear-endasaresultoffiscalandaryeasingpoliciesinallmajoreconomies.ThevolatileglobalfinancialmarketshighlighttheimportanceoftheUniversity§sinvestmentportfoliodiversificationacrossdifferentassetclasses,geographies,andindustrysectors.Despitethevolatilefinancialmarkets,wemanagedtorecordHK$252.5millioninterestandinvestmentein2019/2020.Thise,coupledwiththerecurringoperatingcashflow,providedamuchedandneededadditiontoourfinancialresources,supportingthelong-termdevelopmentoftheUniversity. 2019-2020ৌਕజѓFINANCIALREPORT 004 ̡‫ࢫ‬జѓTREASURER§SREPORT ࣏ಛʿִ݁ᅡಛ DonationsandGovernmentGrants ԸІ‫ࡈ‬ɛeʮ̡ዚ࿴ձਿ‫࣏ٙึږ‬ಛ݊ɽኪЇ‫ٙࠅࠠމ‬༟‫ږ‬Ը๕f࿚Їɚཧɚཧϋɞ˜ɧɤɓ˚dɽኪ΍፽੻ɚᄂɖɷɞϵʬɤຬಥʩ࣏ಛձ໾п‫ږ‬dՉʕɓᄂʬɷʬϵɘɤຬಥʩ‫࠰މ‬ಥᒄ৵ึʚ਄ੰᚐଣኪ৫ձSTEAMධͦʘ࣏ಛfϤ̮dீཀୋɖቃৣ࿁໾п‫ࠇږ‬ྌʿ‫޼‬Ӻৣ࿁໾п‫ࠇږ‬ྌdִ݁ഗʚ͉ࣧ΍ɓɷʞϵɖɤຬಥʩᅡಛd˸ৣ࿁Ң‫ࡁ‬ϗՑٙɚɷ̬ϵຬಥʩ࣏ಛf͉ࣧ੽ʔΝฉഛ‫࢕‬eΆุeฉഛਿ‫ږ‬ʿ΢‫ޢ‬ʾλdΥ΍ϗՑɧɷɚϵɞɤຬಥʩ࣏ಛd˸Ъ౤Զᆤeпኪ‫ږ‬ձ༟пኪ͛‫ݺ‬ਗʘ͜f˸ɪ࿓౑࣏፩d‫މ‬຅‫ٙۃ‬ᐄ༶e‫ڗ‬ಂҳ༟ձ͊Ըٙࣨː‫ݺ‬ਗ౤Զə̀‫ٙࠅ‬༟‫ږ‬Ը๕fҢ‫ࡁ‬Σɽኪཀ̘ձତί࣏ٙп٫‫˸ߧ‬হːᑽจdชᑽ˼‫ࡁ‬ᆠː༆ᚾdᜫҢ‫˸੻ࡁ‬৛Ӌՙ൳dᒕӉΣ‫ۃ‬d༺ϓԴնf Donationsfromindividuals,corporations,andfoundationsrepresentavitallyimportantsourceoffundingfortheUniversity.Inaggregate,atotalofHK$278.6millionindonationsandgrantswasrecordedinthefinancialperiodended31stAugust2020,ofwhichHK$166.9millionwasdonationfromTheHongKongJockeyClubfortheIOHandSTEAMprojects.Inaddition,atotalofHK$15.7millionmatchinggrantswasawardedbytheGovernmentundertheSeventhMatchingGrantandResearchMatchingGrantSchemesagainstatotalofHK$24.0millionmatcheddonations.AnotherHK$32.8millionofdonationsweremadebyvariousphilanthropists,corporations,charitablefoundationsandfriendsforscholarships,bursaries,andstudentactivities.Thisremarkablegenerosityprovidesthenecessaryfundingforcurrentoperations,long-terminvestments,andresourcesforcoreactivitiesforfuturegenerations.WeareenormouslygratefultotheUniversity§spastandpresentdonorsfortheirgenerosityinprovidingtheresourcesthatenabletheUniversity§smissionanditsaspirationalpursuitofexcellence. ಂ‫ุܓ‬ᐶ ResultsofthePeriod ͉ɛ್ؚజѓd͉ಂ‫ܓ‬ɽኪᘱᚃৌਕุᐶᖢ਄dˈՉίவʔᆽ֛ٙ຾᏶ձ݁‫ط‬ᐑྤɨdྼίᗭঐ̙൮fɽኪٙၝΥᐄ༶ޮቱ‫މ‬ɚᄂɖɷʬϵʬɤຬಥʩdଋл‫ࢹ‬ʿҳ༟ϗू‫މ‬ɚᄂʞɷɚϵʞɤຬಥʩd˿዆᜗ޮቱ৷༺ʞᄂɓϵຬಥʩd͉݊ࣧϞ̦˸Ը௰λٙϓᐶʘɓfᐄ༶ତ‫ݴږ‬੶‫ۊ‬d༺ɖᄂɘϵɧɤຬಥʩdΝࣛණྠٙଋ༟ପ‫ۆ‬ᄣ̋ЇɧɤɖᄂɚɷɖϵʞɤຬಥʩfϤഃԳᐶᆽ‫ڭ‬ɽኪৌਕྼɢඪ‫ێ‬dঐ੄Ꮠ࿁͊Ըٙܿ኷f͉ࣧʦ˂ٙϓఱdᓥ̌׵઺ᔖ‫ࡰ‬ձኪ͛ٙΌઋҳɝd࿁ɽኪฌᚐϞ̋fίϤdҢชᑽ˼‫ࡁ‬࿁ɽኪٙ਺֛˕ܵdᜫ͉ࣧ˜‫ึٟމ‬౤Զක‫׳‬ʿᜳ‫઺ݺ‬ԃd‫ߧ‬ɢϓ‫މ‬຅ʕٙჯኬ٫dԨ೯‫࢝‬ϓ‫މ‬ɓ‫ה‬ՙ൳ٙ৷ഃ઺ԃኪִ™f Iampleasedtoreportanotheryearofasolidfinancialperformance,particularlygiventheuncertaineconomicandpoliticalenvironmentinwhichweoperated.TheUniversityhasachievedaconsolidatedoperatingsurplusofHK$276.6millionandinterestandinvestmenteofHK$252.5million,contributingtoaHK$501.0millionoverallsurplus,whichisoneofthebestresultsintheUniversity§shistory.OperatingcashflowwasastrongHK$709.3millionassetsoftheGroupincreasedtoHK$3,727.5million.TheseresultsensuretheUniversityisfinanciallyrobustandabletorespondtothechallengesahead.Weoweouresstotheenergy,passion,andenthusiasmofourstaffandstudents,andIwouldliketothankthemfortheirunfailingsupportoftheUniversityinmitmen¨ttobealeaderinprovidingopenandflexibleeducationtoall,andtoexcelasaproviderofqualityhighereducation©. 005 ̡‫ࢫ‬జѓTREASURER§SREPORT ‫࢝‬ૐ WayForward ʕִ̯݁ձ‫࠰‬ಥतਜִ݁˕ܵຽಥዦٙ৷ഃ઺ԃዚ࿴ίɽᝄਜ΍Νᐄ༶Ъุf͉ࣧ‫ߧ‬ɢ೯‫࢝‬ʮɽ€ၴᅅࣧ෤d‫މ‬ɽᝄਜЪ্̈ᘠdவਗ਼͉݊ࣧ͊Ըٙഄଫ೯‫ࠠ࢝‬ᓃʘɓfϤධͦਗ਼‫͉ࣧމ‬ኪ͛౤Զᔮబεᅵٙኪ୦຾᜕d̋੶઺ᔖ‫ٙࡰ‬ኪஔձ‫޼‬ӺΥЪdԨ‫މ‬͊Ը੃ԃబਖ਼ุٝᗆձՈ਷ყൖ௉ٙɛʑdᜫ˼‫ࡁ‬ঐ੄ਞၾɽᝄਜٙක೯ձ၍ଣfϤ̮d‫މ‬ə‫ڮ‬ආၾʫήɽኪձ‫޼߅‬ዚ࿴ٙ‫޼‬ӺΥЪdԨ‫ن‬՟຅ή࣏п٫ٙ˕ܵd͉͍ࣧίрɢһҷଉέɿʮ̡ٙΤ၈dԨᓒɽ༈ʮุ̡ٙਕᇍఖd˸ܼ̍ίʕ਷΢ήٙ‫޼‬Ӻձ೯‫ݺ࢝‬ਗf TheCentralandHKSARGovernmentssupporthighereducationinstitutionsfromGuangdong,HongKong,andMacaojointlyoperatingeducationinstitutionsinGBA.TheUniversitymittedtomakingitscontributiontotheGBAthroughthedevelopmentoftheOUHK(ZQ)campus,whichwillbeoneoftheUniversity§sstrategicfocusesiningyears.Theprojectwillproviderichanddiverselearningexperiencesforourstudents,strengthenacademicandresearchcooperationforourstaff,andnurturefuturetalentwithprofessionalknowledgeandglobalvisionsothattheycanparticipateinthedevelopmentandmanagementoftheGBA.Additionally,inordertopromoteresearchcollaborationwithMainlanduniversitiesandscientificresearchinstitutionsandsecurefinancialsupportfromlocaldonors,theUniversityisintheprogressofchangingpanynameofitsShenzhensubsidiaryandexpandingthebusinessscopeofthesubsidiarytoincluderesearchanddevelopmentactivitiesinChina. Όଢ‫ږ‬ፄ̹ఙίɚཧɚཧЇɚɓϋ‫ܓ‬ਗ਼ᘱᚃ‫ت‬ਗfᒱ್˰‫ޢ‬΢਷ִ݁ձʕ̯ვБપ̈əՐዧ຾᏶݁ഄdШ͟׵ɚཧɓɘ‫ًڿ‬ष‫ݭ‬ष‫ޥ‬ઋኬ‫ٙߧ‬Όଢ຾᏶৾ᓖ੭Ըə຾᏶সৗd̋ɪʕ‫ߕ‬൱׸ၡੵ҅ැʺॴձ‫ߕ‬਷ᐼ୕ɽ፯dһε‫߉‬೯ԫ΁ձ̹ఙਗᐗਗ਼௔ᚃϞԸfኋ၍πίவԬʔᆽ֛Ϊ९d͉ࣧ࿁ৌਕ‫ڗ‬ಂܵᚃᖢ਄೯‫̂࢝‬တ‫ڦ‬ːfҢ‫ࡁ‬ਗ਼ᘱᚃમ՟ϞࣖٙৌਕഄଫԸ၍ଣϗ˕dਖ਼‫௴ء‬ிᄆ‫࠽‬ձ౤৷ࣖଟd˸ପ͛‫ڗ‬ಂତ‫ݴږ‬Ը༺ЇԴնf Globalfinancialmarketswillcontinuetobevolatilein2020/2021.Despitethestimuluspoliciesintroducedbygovernmentsandcentralbanksaroundtheworld,theshutdownoftheglobaleconomyresultingfromtheCOVID-19outbreakhasledtoaneconomicrecession.This,coupledwiththeescalationoftheUSChinatradetensionsandtheUSpresidentialelection,willcreatemoresurprisesandmarketvolatility.Notwithstandingtheseuncertainties,theUniversityisconfidentinitslong-termfinancialsustainability.Wewillcontinuewithoureffectivefinancialstrategiesinmanagingoureandspending,focusingonvaluecreationandefficiencyenhancementinordertogeneratethelong-termcashflowneededtodeliveritsmission. 2019-2020ৌਕజѓFINANCIALREPORT ʙᎀ๢‫࠰‬ಥʮකɽኪ̡‫ࢫ‬ PeterKTWanTreasurerofTheOpenUniversityofHongKong 006 ዹͭࣨᅰ‫ࢪ‬జѓREPORTOFTHEINDEPENDENTAUDITOR ‫࠰ߧ‬ಥʮකɽኪࣧ໨ึ TotheCouncilofTheOpenUniversityofHongKong จԈ Ң‫ࡁ‬ʊᄲ‫ٙࠇ‬ʫ‫࢙‬ Opinion Whatwehaveaudited ‫࠰‬ಥʮකɽኪ(˸ɨᔊ၈˜൮ɽኪ™)ʿՉɿʮ̡(˸ɨᔊ၈˜൮ණྠ™)ΐ༱׵ୋɤɚЇɞɤɖࠫٙၝΥৌਕజ‫ڌ‬dܼ̍j TheconsolidatedfinancialstatementsofTheOpenUniversityofHongKong(the¨University©)anditssubsidiaries(the¨Group©)setoutonpages12to87,prise: •׵ɚཧɚཧϋɞ˜ɧɤɓ˚ٙၝΥ༟ପ‫ࠋ‬ව‫ڌ‬i •theconsolidatedbalancesheetasat31stAugust2020; •࿚Їɚཧɚཧϋɞ˜ɧɤɓ˚˟ɤɖ‫ࡈ‬˜ಂගٙၝΥϗ˕‫ڌ‬i •theconsolidatedstatementprehensiveefortheseventeenmonthsended31stAugust2020; •࿚Їɚཧɚཧϋɞ˜ɧɤɓ˚˟ɤɖ‫ࡈ‬˜ಂගٙၝΥ༟‫ږ‬ഐቱᜊਗ‫ڌ‬i •theconsolidatedstatementofchangesinfundbalancesfortheseventeenmonthsended31stAugust2020; •࿚Їɚཧɚཧϋɞ˜ɧɤɓ˚˟ɤɖ‫ࡈ‬˜ಂගٙၝΥତ‫ݴږ‬ඎ‫ڌ‬iʿ •theconsolidatedstatementofcashflowsfortheseventeenmonthsended31stAugust2020;and •ၝΥৌਕజ‫ڝڌ‬ൗdܼ̍˴‫݁ࠇึࠅ‬ഄ฿‫ࠅ‬f •thenotestotheconsolidatedfinancialstatements,whichincludeasummaryofsignificantountingpolicies. Ң‫ٙࡁ‬จԈ Ouropinion Ң‫ࡁ‬Ⴉ‫މ‬d༈ഃၝΥৌਕజ‫ڌ‬ʊ࣬ኽ‫࠰‬ಥึ‫ࢪࠇ‬ʮึ཯̺ٙ‫࠰‬ಥৌਕజѓ๟‫ྼॆ‘ۆ‬Ͼʕ‫ٵ‬ήˀ݈ə൮ණྠ׵ɚཧɚཧϋɞ˜ɧɤɓ˚ٙၝΥৌਕً‫ر‬ʿՉ࿚Їɚཧɚཧϋɞ˜ɧɤɓ˚˟ɤɖ‫˜ࡈ‬ಂගٙၝΥৌਕ‫ڌ‬ତʿၝΥତ‫ݴږ‬ඎf Inouropinion,theconsolidatedfinancialstatementsgiveatrueandfairviewoftheconsolidatedfinancialpositionoftheGroupasat31stAugust2020,andofitsconsolidatedfinancialperformanceanditsconsolidatedcashflowsfortheseventeenmonthsended31stAugust2020inordancewithHongKongFinancialReportingStandards¨(HKFRSs©)issuedbytheHongKongInstituteofCertifiedPublicountants¨(HKICPA©). 007 ዹͭࣨᅰ‫ࢪ‬జѓREPORTOFTHEINDEPENDENTAUDITOR จԈٙਿᓾ BasisforOpinion Ң‫ࡁ‬ʊ࣬ኽ‫࠰‬ಥึ‫ࢪࠇ‬ʮึ཯̺ٙ‫࠰‬ಥᄲ‫ࠇ‬๟‫‘ۆ‬ආБᄲ‫ࠇ‬fҢ‫ࡁ‬ί༈ഃ๟‫ۆ‬ɨ‫ו‬ዄٙப΂ʊί͉జѓ˜ࣨᅰ‫ࢪ‬ఱᄲ‫ࠇ‬ၝΥৌਕజ‫וڌ‬ዄٙப΂™௅ʱʕЪආɓӉᙕ‫ࠑ‬f WeconductedourauditinordancewithHongKongStandardsonAuditing(¨HKSAs©)issuedbytheHKICPA.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor§sResponsibilitiesfortheAuditoftheConsolidatedFinancialStatementssectionofourreport. Ң‫ڦ޴ࡁ‬dҢ‫הࡁ‬ᐏ੻ٙᄲ‫ࠇ‬ኯᗇঐ̂ԑʿቇ຅ή‫މ‬Ң‫ٙࡁ‬ᄲ‫ࠇ‬จԈ౤Զਿᓾf Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion. ዹͭ‫׌‬ Independence ࣬ኽ‫࠰‬ಥึ‫ࢪࠇ‬ʮึ཯̺ٙਖ਼ุึ‫ࢪࠇ‬༸ᅃς‫˸)‘ۆ‬ɨᔊ၈˜ς‫(™ۆ‬dҢ‫ࡁ‬ዹͭ׵൮ණྠdԨʊᄵБς‫ۆ‬ʕٙՉ˼ਖ਼ุ༸ᅃப΂f WeareindependentoftheGroupinordancewiththeHKICPA§sCodeofEthicsforProfessionalountants¨(theCode©),andwehavefulfilledourotherethicalresponsibilitiesinordancewiththeCode. Չ˼‫ࢹڦ‬ OtherInformation ൮ɽኪࣧ໨ึ඲࿁Չ˼‫ࠋࢹڦ‬பfՉ˼‫ࢹڦ‬̡ܼ̍‫ࢫ‬జѓʿุᐶܸᅺʫٙ‫ࢹڦ‬dШʔܼ̍ၝΥৌਕజ‫ڌ‬ʿҢ‫ࣨٙࡁ‬ᅰ‫ࢪ‬జѓf TheCouncilisresponsiblefortheotherinformation.TheotherprisestheinformationincludedinTreasurer§sReportandPerformanceIndicators,butdoesnotincludetheconsolidatedfinancialstatementsandourauditor§sreportthereon. Ң‫ࡁ‬࿁ၝΥৌਕజ‫ٙڌ‬จԈԨʔ଄ႊՉ˼‫ࢹڦ‬dҢ‫͵ࡁ‬ʔ࿁༈ഃՉ˼‫ࢹڦ‬೯‫΂ڌ‬ОҖόٙᛡᗇഐሞf Ouropinionontheconsolidatedfinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon. ഐΥҢ‫ࡁ‬࿁ၝΥৌਕజ‫ٙڌ‬ᄲ‫ࠇ‬dҢ‫ٙࡁ‬ப΂݊ቡᛘՉ˼‫ࢹڦ‬dίϤཀ೻ʕdϽᅇՉ˼‫݊ࢹڦ‬щၾၝΥৌਕజ‫אڌ‬Ң‫ࡁ‬ίᄲ‫ࠇ‬ཀ೻ʕ‫ה‬ə༆ٙઋ‫ر‬πίࠠɽ‫ת‬ᙃ‫א‬٫Ч˷πίࠠɽ፹Ⴌ௓‫ٙࠑ‬ઋ‫ر‬f Inconnectionwithourauditoftheconsolidatedfinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththeconsolidatedfinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated. ਿ׵Ң‫ࡁ‬ʊੂБٙʈЪdν‫؈‬Ң‫ࡁ‬Ⴉ‫މ‬Չ˼‫ࢹڦ‬πίࠠɽ፹Ⴌ௓‫ࠑ‬dҢ‫ࡁ‬ც‫ࠅ‬జѓ༈ԫྼfίவ˙ࠦdҢ‫ࡁ‬ӚϞ΂Оజѓf If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard. 2019-2020ৌਕజѓFINANCIALREPORT 008 ዹͭࣨᅰ‫ࢪ‬జѓREPORTOFTHEINDEPENDENTAUDITOR ࣧ໨ึʿᄲࣨ։‫ึࡰ‬ఱၝΥৌਕజ‫ڌ‬඲‫ו‬ዄٙப΂ ResponsibilitiesofTheCouncilandTheAuditCommitteefortheConsolidatedFinancialStatements ൮ɽኪࣧ໨ึ඲‫ࠋ‬ப࣬ኽ‫࠰‬ಥึ‫ࢪࠇ‬ʮึ཯̺ٙ‫࠰‬ಥৌਕజѓ๟‫‘ۆ‬ʿ‫࠰‬ಥʮකɽኪૢԷᏝ௪ॆྼϾʕ‫ٙٵ‬ၝΥৌਕజ‫ڌ‬dԨ࿁ՉႩ‫މމ‬ԴၝΥৌਕజ‫ٙڌ‬Ꮭ௪ʔπί͟׵ಜൟ‫א‬፹ႬϾኬ‫ࠠٙߧ‬ɽ፹Ⴌ௓‫הࠑ‬ცٙʫ௅છՓ‫ࠋ‬பf TheCouncilisresponsibleforthepreparationoftheconsolidatedfinancialstatementsthatgiveatrueandfairviewinordancewithHKFRSsissuedbytheHKICPA,andTheOpenUniversityofHongKongOrdinance,andforsuchinternalcontrolastheCouncildeterminesisnecessarytoenablethepreparationofconsolidatedfinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror. ίᏝ௪ၝΥৌਕజ‫ࣛڌ‬d໨ԫ‫ࠋ‬ப൙П൮ණྠܵᚃ຾ᐄٙঐɢdԨίቇ͜ઋ‫ر‬ɨ‫מ‬ᚣၾܵᚃ຾ᐄϞᗫٙԫධd˸ʿԴܵ͜ᚃ຾ᐄ‫މ‬ึ‫ࠇ‬ਿᓾdৰ‫ڢ‬໨ԫϞจਗ਼൮ණྠ૶ᆵ‫৾א‬˟຾ᐄd‫א‬йೌՉ˼ྼყٙಁ˾˙ࣩf Inpreparingtheconsolidatedfinancialstatements,theCouncilisresponsibleforassessingtheGroup§sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofountingunlesstheCouncileitherintendtoliquidatetheGrouportoceaseoperations,orhavenorealisticalternativebuttodoso. ᄲࣨ։‫ึࡰ‬඲‫ࠋ‬ப္ຖ൮ණྠٙৌਕజѓཀ೻f TheAuditCommitteeisresponsibleforoverseeingfinancialreportingprocessoftheGroup. 009 ዹͭࣨᅰ‫ࢪ‬జѓREPORTOFTHEINDEPENDENTAUDITOR ࣨᅰ‫ࢪ‬ఱᄲ‫ࠇ‬ၝΥৌਕజ‫ڌ‬‫ו‬ዄٙப΂ Auditor§sResponsibilitiesfortheAuditoftheConsolidatedFinancialStatements Ң‫ͦٙࡁ‬ᅺd݊࿁ၝΥৌਕజ‫ڌ‬዆᜗݊щʔπί͟׵ಜൟ‫א‬፹ႬϾኬ‫ࠠٙߧ‬ɽ፹Ⴌ௓‫ࠑ‬՟੻Υଣ‫ڭ‬ᗇdԨ̈Ոܼ̍Ң‫ࡁ‬จԈٙࣨᅰ‫ࢪ‬జѓfҢ‫ࡁ‬සܲ๫‫࠰‬ಥʮකɽኪૢԷୋ15ૢΣტɨ€Ъ‫މ‬዆᜗జѓҢ‫ٙࡁ‬จԈdৰϤʘ̮͉జѓйೌՉ˼ͦٙfҢ‫ࡁ‬ʔึఱ͉జѓٙʫ‫࢙‬Σ΂ОՉ˼ɛɻ‫ࠋ‬ɪ‫וא‬ዄ΂Оப΂fΥଣ‫ڭ‬ᗇ݊৷˥̻ٙ‫ڭ‬ᗇdШʔঐ‫ڭ‬ᗇܲ๫‫࠰‬ಥᄲ‫ࠇ‬๟‫‘ۆ‬ආБٙᄲ‫ࠇ‬dί‫ݔ‬ɓࠠɽ፹Ⴌ௓‫ࠑ‬πίࣛᐼঐ೯ତf፹Ⴌ௓‫ࠑ‬̙˸͟ಜൟ‫א‬፹Ⴌˏৎdν‫؈‬Υଣཫಂ̴‫ࡁ‬ఊዹ‫א‬䁩ᐼৎԸ̙ঐᅂᚤၝΥৌਕజ‫ڌ‬Դ͜٫Ա፠ၝΥৌਕజ‫הڌ‬Ъ̈ٙ຾᏶Ӕ֛d‫ۆ‬Ϟᗫٙ፹Ⴌ௓‫̙ࠑ‬஗ൖЪࠠɽf Ourobjectivesaretoobtainreasonableassuranceaboutwhethertheconsolidatedfinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor§sreportthatincludesouropinion.Wereportouropinionsolelytoyou,asabody,inordancewithsection15ofTheOpenUniversityofHongKongOrdinanceandfornootherpurpose.Wedonotassumeresponsibilitytowardsoreptliabilitytoanyotherpersonforthecontentsofthisreport.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinordancewithHKSAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisoftheseconsolidatedfinancialstatements. ί࣬ኽ‫࠰‬ಥᄲ‫ࠇ‬๟‫‘ۆ‬ආБᄲ‫ٙࠇ‬ཀ೻ʕdҢ‫ࡁ‬༶͜əਖ਼ุкᓙd‫ܵڭ‬əਖ਼ุᕿဲ࿒‫ܓ‬fҢ‫͵ࡁ‬j AspartofanauditinordancewithHKSAs,weexerciseprofessionaljudgmentandmaintainprofessionalscepticismthroughouttheaudit.Wealso: •ᗆйձ൙П͟׵ಜൟ‫א‬፹ႬϾኬ‫ߧ‬ၝΥৌਕజ‫ڌ‬πίࠠɽ፹Ⴌ௓‫ࠬٙࠑ‬ᎈdண‫ࠇ‬ʿੂБᄲ‫೻ࠇ‬ҏ˸Ꮠ࿁வԬࠬᎈd˸ʿᐏ՟̂ԑձቇ຅ٙᄲ‫ࠇ‬ኯᗇdЪ‫މ‬Ң‫ࡁ‬จԈٙਿᓾf͟׵ಜൟ̙ঐऒʿЕፑe৽ிeႅจ፲ဍeൈ৿௓‫ࠑ‬d‫ࡗא‬ቷ׵ʫ௅છՓʘɪdΪϤ͊ঐ೯ତΪಜൟϾኬ‫ࠠٙߧ‬ɽ፹Ⴌ௓‫ࠬٙࠑ‬ᎈ৷׵͊ঐ೯ତΪ፹ႬϾኬ‫ࠠٙߧ‬ɽ፹Ⴌ௓‫ࠬٙࠑ‬ᎈf •Identifyandassesstherisksofmaterialmisstatementoftheconsolidatedfinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,ery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol. •ə༆ၾᄲ‫޴ࠇ‬ᗫٙʫ௅છՓd˸ண‫ࠇ‬ቇ຅ٙᄲ‫೻ࠇ‬ҏdШͦٙԨ‫ڢ‬࿁൮ණྠʫ௅છՓٙϞࣖ‫׌‬೯‫ڌ‬จԈf •Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheGroup§sinternalcontrol. •൙ᄆࣧ໨ึ‫ה‬મ͜ึ‫݁ࠇ‬ഄٙ‫ܦ‬຅‫׌‬ʿЪ̈ึ‫ࠇ‬П‫ࠇ‬ձ‫޴‬ᗫ‫מ‬ᚣٙΥଣ‫׌‬f •EvaluatetheappropriatenessofountingpoliciesusedandthereasonablenessofountingestimatesandrelateddisclosuresmadebytheCouncil. 2019-2020ৌਕజѓFINANCIALREPORT 010 ዹͭࣨᅰ‫ࢪ‬జѓREPORTOFTHEINDEPENDENTAUDITOR ࣨᅰ‫ࢪ‬ఱᄲ‫ࠇ‬ၝΥৌਕజ‫ڌ‬‫ו‬ዄٙப΂€ᚃ Auditor§sResponsibilitiesfortheAuditoftheConsolidatedFinancialStatements(continued) •࿁ࣧ໨ึમܵ͜ᚃ຾ᐄึ‫ࠇ‬ਿᓾٙ‫ܦ‬຅‫׌‬Ъ̈ഐሞf࣬ኽ‫ה‬ᐏ՟ٙᄲ‫ࠇ‬ኯᗇdᆽ֛݊щπίၾԫධ‫א‬ઋ‫ر‬Ϟᗫٙࠠɽʔᆽ֛‫׌‬d੽Ͼ̙ঐኬ‫ߧ‬࿁൮ණྠٙܵᚃ຾ᐄঐɢପ͛ࠠɽဲᅇfν‫؈‬Ң‫ࡁ‬Ⴉ‫މ‬πίࠠɽʔᆽ֛‫׌‬d‫ۆ‬Ϟ̀‫ࠅ‬ίࣨᅰ‫ࢪ‬జѓʕ౤ሗԴ͜٫‫ء‬จၝΥৌਕజ‫ڌ‬ʕٙ‫޴‬ᗫ‫מ‬ᚣf৿߰Ϟᗫٙ‫מ‬ᚣʔԑd‫ۆ‬Ң‫ࡁ‬Ꮠ຅೯‫ڭೌڢڌ‬वจԈfҢ‫ٙࡁ‬ഐሞ݊ਿ׵ࣨᅰ‫ࢪ‬జѓ˚˟‫ה‬՟੻ٙᄲ‫ࠇ‬ኯᗇf್Ͼd͊Ըԫධ‫א‬ઋ‫̙ر‬ঐኬ‫ߧ‬൮ණྠʔঐܵᚃ຾ᐄf •ConcludeontheappropriatenessoftheCouncil§suseofthegoingconcernbasisofountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheGroup§sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor§sreporttotherelateddisclosuresintheconsolidatedfinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor§sreport.However,futureeventsorconditionsmaycausetheGrouptoceasetocontinueasagoingconcern. •൙ᄆၝΥৌਕజ‫ٙڌ‬዆᜗ΐజ˙όeഐ࿴ձʫ‫࢙‬dܼ̍‫מ‬ᚣd˸ʿၝΥৌਕజ‫݊ڌ‬щʕ‫ٵ‬ˀ݈ʹ׸ձԫධf •Evaluatetheoverallpresentation,structureandcontentoftheconsolidatedfinancialstatements,includingthedisclosures,andwhethertheconsolidatedfinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation. •ఱ൮ණྠʫྼ᜗‫ุא‬ਕ‫ݺ‬ਗٙৌਕ‫ࢹڦ‬ᐏ՟̂ԑeቇ຅ٙᄲ‫ࠇ‬ኯᗇd˸‫ک‬࿁ၝΥৌਕజ‫ڌ‬೯‫ڌ‬จԈfҢ‫ࠋࡁ‬ப൮ණྠᄲ‫˙ٙࠇ‬Σe္ຖձੂБfҢ‫މࡁ‬ᄲ‫ࠇ‬จԈ‫ו‬ዄΌ௅ப΂f •ObtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithintheGrouptoexpressanopinionontheconsolidatedfinancialstatements.Weareresponsibleforthedirection,supervisionandperformanceofthegroupaudit.Weremainsolelyresponsibleforourauditopinion. ৰՉ˼ԫධ̮dҢ‫ࡁ‬ၾᄲࣨ։‫ึࡰ‬๖ஷə‫ࠇ‬ྌٙᄲ‫ࠇ‬ᇍఖeࣛගτરeࠠɽᄲ‫ࠇ‬೯ତഃdܼ̍Ң‫ࡁ‬ίᄲ‫ࠇ‬ʕᗆй̈ʫ௅છՓٙ΂Оࠠɽॹ௘f municatewiththeAuditCommitteeregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit. ᖯж‫͑ە‬༸ึ‫ࢪࠇ‬ԫਕ‫ה‬ੂุึ‫ࢪࠇ‬‫࠰‬ಥdɚཧɚཧϋɤɚ˜ɤ˚ PricewaterhouseCoopersCertifiedPublicountantsHongKong,10thDecember2020 011 012 2019-2020ৌਕజѓFINANCIALREPORT ၝΥ༟ପ‫ࠋ‬ව‫ڌ‬CONSOLIDATEDBALANCESHEET ׵ɚཧɚཧϋɞ˜ɧɤɓ˚ASAT31STAUGUST2020˸ಥʩഐၑExpressedinHongKongdollars ‫ڝ‬ൗ Note ‫ݴڢ‬ਗ༟ପ NON-CURRENTASSETS ҳ༟‫ุي‬ Investmentproperties
7 ‫ุي‬eዚኜʿண௪ Property,plantandequipment
8 ೌҖ༟ପ Intangibleassets
9 Դ͜ᛆ༟ପ Right-of-useassets 23 ɺήԴ͜ᛆ Landuseright 10 Ꮠϗኪ͛൲ಛ Studentloanreceivables 13 ܲᛅቖϓ͉ٙ‫ږ‬ፄҳ༟ Financialinvestmentsatamortisedcost 15 ‫ݴ‬ਗ༟ପሙ೻઺ҿ‫ࢫ‬πᏐϗሪಛeՉ˼Ꮠϗሪಛeཫ˹ಛධʿܲ‫ږ‬Ꮠϗኪ͛൲ಛஷཀฦू‫ڌ‬ˀ݈ʮ̻ᄆ‫࠽‬ᜊʷ֛ٙ݅‫ږ‬ፄ༟ପܲᛅቖϓ͉ٙ‫ږ‬ፄҳ༟‫ږ͛ࠃ‬ፄ༟ପ‫ࡡ‬Ցಂ˚൴ཀɧ‫˜ࡈ‬ʘვБπಛତ‫ږ‬ʿତ‫ږ‬ഃᄆ‫ي‬ CURRENTASSETS Stockofcoursematerials ountsreceivable,otherreceivables, prepaymentsanddeposits 14 Studentloanreceivables 13 Designatedfinancialassetsatfairvaluethrough profitorloss 16 Financialinvestmentsatamortisedcost 15 Derivativefinancialassets Bankdepositswithoriginalmaturitiesoverthree months 17 Cashandcashequivalents 17 ‫ݴ‬ਗ‫ࠋ‬වཫϗ΢ᗳϗ൬Ꮠ˹ሪಛeᏐ‫ࠇ‬൬͜ʿᅡ௪჈ַϗू઺ᔖ‫ࡰ‬ཇ‫ږ‬ᅡ௪‫ݴ‬ਗ௅ʱִ݁Ϟ‫ץת‬൲ಛ‫ݴ‬ਗ௅ʱॡ༣‫ࠋ‬ව‫ݴ‬ਗ௅ʱ೼ධᅡ௪ CURRENTLIABILITIES Feeereceiptinadvance 18 ountspayable,ruedexpenses andprovisions 19 Deferrede 20 Currentportionofgratuitiesprovision 21 CurrentportionofGovernmentloans,secured22 Currentportionofleaseliabilities 23 etaxpayable ‫ݴ‬ਗ༟ପଋᕘ NETCURRENTASSETS ׵ɚཧɚཧϋɞ˜ɧɤɓ˚At31stAugust2020 $§000 137,2461,877,321 4620,741 32,97393,5772,161,904 2,714 241,4932,119 1,990,604601- 301,9061,157,5203,696,957 493,345 277,982277,888 27,828- 8,34778 1,085,4682,611,489 ᐼ༟ପಯ‫ݴ‬ਗ‫ࠋ‬ව TOTALASSETSLESSCURRENTLIABILITIES 4,773,393 ‫ݴڢ‬ਗ‫ࠋ‬ව઺ᔖ‫ࡰ‬ཇ‫ږ‬ᅡ௪ִ݁Ϟ‫ץת‬൲ಛॡ༣‫ࠋ‬ව჈ַ༟͉ਿ‫ږ‬჈ַ೼ධ‫ࠋ‬ව ଋ༟ପᐼᕘ NON-CURRENTLIABILITIESGratuitiesprovisionGovernmentloans,securedLeaseliabilitiesDeferredcapitalfundDeferredtaxliability TOTALNETASSETS 21 14,954 22 440,943 23 7,768 24 576,560 25 5,699 1,045,924 3,727,469 ׵ɚཧɓɘϋ
ɧ˜ɧɤɓ˚At31stMarch2019 $§000 142,3181,435,002 3,486- 5,25724,939102,0001,713,002 2,382 117,8886,470 1,576,16241,53290 655,390781,8753,181,789 313,545 149,028252,778 23,78231,050 1,320771,5032,410,286 4,123,288 15,934452,265 425,098 3,570896,8673,226,421 ၝΥ༟ପ‫ࠋ‬ව‫ڌ‬CONSOLIDATEDBALANCESHEET ׵ɚཧɚཧϋɞ˜ɧɤɓ˚ASAT31STAUGUST2020˸ಥʩഐၑExpressedinHongKongdollars ‫޴‬຅׵ਿ‫ږ‬ၾᎷ௪‫ږ‬ REPRESENTEDBYFUNDSANDRESERVES ׵ɚཧɚཧϋ ɞ˜ɧɤɓ˚ ‫ڝ‬ൗAt31stAugust2020 Note $§000
6 3,727,469 ׵ɚཧɓɘϋɧ˜ɧɤɓ˚At31stMarch2019 $§000 3,226,421 ࣧ໨ึ׵ɚཧɚཧϋɤɚ˜ɤ˚ࣨ‫ࡘ‬ϤၝΥৌਕజѓApprovedbytheCouncilon10thDecember2020 ʙᎀ๢PeterKTWan ̡‫ࢫ‬Treasurer ර͗ʆYSWong ࣧ‫ڗ‬President Ⴛ౽ਃRaymondCWChiu ৌਕʿࣧ෤၍ଣᐼ္DirectorofFinance&FacilitiesManagement 013 ၝΥϗ˕‫ڌ‬CONSOLIDATEDSTATEMENTOFCOMPREHENSIVEINCOME ࿚Їɚཧɚཧϋɞ˜ɧɤɓ˚˟ɤɖ‫˜ࡈ‬ಂගFORTHESEVENTEENMONTHSENDED31STAUGUST2020˸ಥʩഐၑExpressedinHongKongdollars ุਕ‫ݺ‬ਗᐄ༶ϗू ኪ൬ϗूᚥਪ൬ϗूᕏධϗूᐼᐄ༶ϗू OPERATINGACTIVITIESOPERATINGINCOME TuitionfeeeConsultancyfeeeMiscellaneouseTotaloperatinge ࿚Їɚཧɚཧϋ ɞ˜ɧɤɓ˚ ˟ɤɖ‫˜ࡈ‬ Seventeenmonths ‫ڝ‬ൗended31stAugust2020 Note $§000 1,710,02732,33778,813 1,821,177 ࿚Їɚཧɓɘϋɧ˜ɧɤɓ˚˟ϋ‫ܓ‬Yearended 31stMarch2019$§000 1,185,45316,78328,093 1,230,329 ᐄ༶ක˕઺ਕක˕ ሙ೻઺ҿኬ‫ࢪ‬ϓ͉ٜટኪ͛ϓ͉઺ᔖ‫ࡰ‬ϓ͉ɓছක˕ Б݁ක˕઺ᔖ‫ࡰ‬ϓ͉ɓছක˕ұᔚ൬͜ ᐼᐄ༶ක˕ OPERATINGEXPENDITUREAcademicexpenditure CoursematerialsTutors§costsDirectstudentcostsStaffcostsGeneralexpenses AdministrativeexpenditureStaffcostsGeneralexpensesDepreciationcharge Totaloperatingexpenditure (21,651) (17,623) (50,004) (43,441) (53,816) (34,494) (614,046) (371,028) 27 (13,144) (8,981) (752,661) (475,567) (404,649) (265,701) 27 (292,769) (160,685) (94,465) (66,818) (791,883) (493,204) (1,544,544) (968,771) ᐄ༶‫ڌ‬ତ OPERATING
RESULT 276,633 261,558 ࣏ಛʿ໾п‫ږ‬༟пٙ OTHERACTIVITIESFUNDEDBY Չ˼‫ݺ‬ਗ DONATIONSANDGRANTS ϗɝ e 28 ක˕ Expenditure 28 128,318(145,889) 109,829(90,863) ࣏ಛʿ໾п‫ږ‬༟пٙՉ˼‫ݺ‬ਗ‫ڌ‬ତ RESULTOFOTHERACTIVITIESFUNDEDBYDONATIONSANDGRANTS (17,571) 18,966 2019-2020ৌਕజѓFINANCIALREPORT NETRESULTBEFOREINTEREST ‫ࠇ‬ɝл‫ࢹ‬ʿҳ༟ϗूձ ANDINVESTMENTINCOMEAND ৌਕ൬͜‫ۃ‬ʘ‫ڌ‬ତ FINANCECOST ଋл‫ࢹ‬ʿҳ༟ϗू Netinterestandinvestmente 35 ৌਕ൬͜ Financecost 23 259,062252,538 (1,108) 280,52456,789- ৰ೼‫ޮۃ‬ቱ‫೼੻ה‬ක˕ಂʫ/ϋʫޮቱ SURPLUSBEFOREINCOMETAX etaxexpense 36 SURPLUSFORTHEPERIOD/YEAR 510,492(9,274) 501,218 337,313(4,276) 333,037 014 ၝΥϗ˕‫ڌ‬CONSOLIDATEDSTATEMENTOFCOMPREHENSIVEINCOME ࿚Їɚཧɚཧϋɞ˜ɧɤɓ˚˟ɤɖ‫˜ࡈ‬ಂගFORTHESEVENTEENMONTHSENDED31STAUGUST2020˸ಥʩഐၑExpressedinHongKongdollars Չ˼ၝΥᑦฦ̙ࠠอʱᗳЇฦूʘධͦිг‫ࢨ‬ᕘ OTHERCOMPREHENSIVELOSSItemsthatmaybereclassifiedtoprofitorlossCurrencytranslationdifferences ࿚Їɚཧɚཧϋ ɞ˜ɧɤɓ˚ ˟ɤɖ‫˜ࡈ‬ Seventeenmonths ‫ڝ‬ൗended31stAugust2020 Note $§000
6 (170) ࿚Їɚཧɓɘϋɧ˜ɧɤɓ˚˟ϋ‫ܓ‬Yearended 31stMarch2019$§000 (1,362) ಂʫ/ϋʫၝΥϗूᐼᕘ TOTALCOMPREHENSIVEINCOMEFORTHEPERIOD/YEAR 501,048 331,675 ʱৣՑjਖ਼͜ਿ‫ږ‬ɓছʿිгᎷ௪ ALLOCATEDTO:SpecificfundsGeneralandexchangereserves 11,874489,174501,048 (1,889)333,564331,675 015 016 2019-2020ৌਕజѓFINANCIALREPORT ၝΥ༟‫ږ‬ഐቱᜊਗ‫ڌ‬CONSOLIDATEDSTATEMENTOFCHANGESINFUNDBALANCES ࿚Їɚཧɚཧϋɞ˜ɧɤɓ˚˟ɤɖ‫˜ࡈ‬ಂගFORTHESEVENTEENMONTHSENDED31STAUGUST2020˸ಥʩഐၑExpressedinHongKongdollars ׵ɚཧɓɞϋ̬˜ɓ˚ʘഐቱ Balanceasat1stApril2018 ਖ਼͜ਿ‫ږ‬Specific funds$§000309,598 ɓছʿිгᎷ௪Generalandexchangereserves $§0002,585,148 ϋʫ(ᑦฦ)/ޮቱՉ˼ၝΥᑦฦj ұၑऎ̮ɿʮ̡ৌਕజ‫הڌ‬ପ͛ʘිг‫ࢨ‬ᕘ ϋʫၝΥ(ᑦฦ)/ϗूᐼᕘਿ‫ږ‬ʘࠠอʱৣ (Deficit)/Surplusfortheyearprehensiveloss: Exchangedifferencearisingfromtranslationofaforeignsubsidiary§sfinancialstatements prehensive(loss)/efortheyear Reallocationoffunds (1,889) 334,926 - (1,889)2,058 (1,362)(1,362) 333,564(2,058) ׵ɚཧɓɘϋɧ˜ɧɤɓ˚ʘഐቱBalanceasat31stMarch2019 309,767 2,916,654 ׵ɚཧɓɘϋ̬˜ɓ˚ʘഐቱ Balanceasat1stApril2019 309,767 2,916,654 ಂʫޮቱՉ˼ၝΥᑦฦj ұၑऎ̮ɿʮ̡ৌਕజ‫הڌ‬ପ͛ʘිг‫ࢨ‬ᕘ ಂʫၝΥϗूᐼᕘ Surplusfortheperiodprehensiveloss: Exchangedifferencearisingfromtranslationofaforeignsubsidiary§sfinancialstatements prehensiveefortheperiod 11,874 489,344 - 11,874 (170)(170) 489,174 ׵ɚཧɚཧϋɞ˜ɧɤɓ˚ʘഐቱBalanceasat31stAugust2020 321,641 3,405,828 ਿ‫ږ‬ʿᎷ௪‫ږ‬ʘᜊਗ༉ΐ׵‫ڝ‬ൗ6fDetailsofmovementsinfundsandreservesaresetoutinnote6. ᐼᕘTotal$§0002,894,746333,037 (1,362)(1,362)331,675 3,226,4213,226,421 501,218 (170)(170)501,0483,727,469 ၝΥତ‫ݴږ‬ඎ‫ڌ‬ CONSOLIDATEDSTATEMENTOFCASHFLOWS ࿚Їɚཧɚཧϋɞ˜ɧɤɓ˚˟ɤɖ‫˜ࡈ‬ಂගFORTHESEVENTEENMONTHSENDED31STAUGUST2020˸ಥʩഐၑExpressedinHongKongdollars ԸІุਕ‫ݺ‬ਗʘତ‫ݴږ‬ඎุਕ‫ݺ‬ਗପ͛ʘତ‫ږ‬ʊ˹ऎ̮೼ಛ ุਕ‫ݺ‬ਗପ͛ʘଋତ‫ږ‬ CashflowsfromoperatingactivitiesCashgeneratedfromoperationsOverseastaxpaid Netcashgeneratedfromoperatingactivities ࿚Їɚཧɚཧϋ ɞ˜ɧɤɓ˚ ˟ɤɖ‫˜ࡈ‬ Seventeenmonths ended31stAugust ‫ڝ‬ൗ 2020 Note $§000 ࿚Їɚཧɓɘϋɧ˜ɧɤɓ˚˟ϋ‫ܓ‬Yearended31stMarch2019$§000 39 717,158 477,454 (7,824) (2,179) 709,334 475,275 ԸІҳ༟‫ݺ‬ਗʘତ‫ݴږ‬ඎʊϗл‫ࢹ‬ʊϗҳ༟ϗूʊ˹ਿ‫ږ‬၍ଣʿ‫ڭ‬၍൬͜ᒅɝܲᛅቖϓ͉ٙ‫ږ‬ፄҳ༟π‫׳‬ίஷཀฦू‫ڌ‬ˀ݈ʮ̻‫࠽‬ᜊʷ֛ٙ݅‫ږ‬ፄ༟ପٙ༟‫ږ‬౤՟Іஷཀฦू‫ڌ‬ˀ݈ʮ̻‫࠽‬ᜊʷ֛ٙ݅‫ږ‬ፄ༟ପٙ༟‫ږ‬౤՟ʊՑಂʿʊ̈ਯʘܲᛅቖϓ͉ٙ‫ږ‬ፄҳ༟ᒅɝ‫ุي‬eዚኜʿண௪̈ਯ‫ุي‬eዚኜʿண௪‫੻ה‬ಛʊબʚኪ͛ʘ൲ಛኪ͛Ꮅᒔʘ൲ಛ‫ࡡ‬Ցಂ˚൴ཀɧ‫˜ࡈ‬ʘვБπಛʘಯˇ/(ᄣ̋) ҳ༟‫ݺ‬ਗਗ͜ʘଋତ‫ږ‬ CashflowsfrominvestingactivitiesInterestreceivedInvestmentereceivedFundmanagementandcustodyfeespaidPurchasesoffinancialinvestmentsatamortisedcostFundsplacedindesignatedfinancialassetsatfairvaluethroughprofitorlossFundswithdrawnfromdesignatedfinancialassetsatfairvaluethroughprofitorlossProceedsfrommaturedanddisposedfinancialinvestmentsatamortisedcostPurchasesofproperty,plantandequipmentSaleproceedsfromdisposalofproperty,plantandequipmentStudentloansgrantedtostudentsStudentloansrepaidbystudentsDecrease/(increase)inbankdepositswithoriginalmaturitiesoverthreemonths Netcashusedininvestingactivities 38,542117,832 (7,163)- (821,092) 510,457 57,876(536,854) 183(12,922) 9,235 353,484(290,422) 18,328146,327 (3,400)(70,080) (242,951) 97,959 (133,994) 74(11,414) 5,636 (478,861)(672,376) ԸІፄ༟‫ݺ‬ਗʘତ‫ݴږ‬ඎ Cashflowsfromfinancingactivities ॡ༣˹ಛ Leasepayments -͉‫ږ‬௅ʱ -Principalelements -л‫ࢹ‬௅ʱ -Interestelements 23 Ꮅᒔִ݁е‫ࢹ‬൲ಛ Interest-freeloanrepaidtotheGovernment 39 ϗ՟ִ݁е‫ࢹ‬൲ಛ Interest-freeloanreceivedfromtheGovernment 39 Netcash(usedin)/generatedfromfinancing ፄ༟‫ݺ‬ਗ(ਗ͜)/ପ͛ʘଋତ‫ږ‬activities (10,348)(1,108) (31,700)- (43,156) (43,700)313,100 269,400 ତ‫ږ‬ʿତ‫ږ‬ഃᄆ‫ٙي‬ଋᜊਗ׵ಂ‫/ڋ‬ϋ‫ڋ‬ʘତ‫ږ‬ʿତ‫ږ‬ഃ ᄆ‫ي‬ഐቱිଟҷᜊٙഐ‫؈‬׵ಂ͋/ϋ͋ʘତ‫ږ‬ʿତ‫ږ‬ഃ ᄆ‫ي‬ഐቱ Netchangesincashandcashequivalents Cashandcashequivalentsatbeginningofthe financialperiod/year Effectofforeignexchangeratechanges Cashandcashequivalentsatendofthe financialperiod/year 17 375,756 781,875(111) 1,157,520 72,299 710,572(996) 781,875 017 ၝΥৌਕజ‫ڝڌ‬ൗNOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS ˸ಥʩഐၑExpressedinHongKongdollars
1.ɓছ༟ࣘ
1.Generalinformation 1.1‫࠰‬ಥʮකɽኪˆ˜ɽኪ™‰€‫࠰ۃ‬ಥʮකආ‫ࡌ‬ኪ৫ˆ˜ኪ৫™‰׵ɓɘɞɘϋʞ˜ɚɤʞ˚࣬ኽ‫࠰‬ಥʮකආ‫ࡌ‬ኪ৫ૢԷ€1989ϓͭ‫ྠجމ‬d˸ʮකආ‫˙ࡌ‬ό౤Զ৷ഃ઺ԃዚึdᔟ˸੃ቮኪ୦ࠬंd౤৷ٝᗆ˥̻d੽Ͼ‫ڮ‬ආ‫࠰‬ಥٙ຾᏶ʿٟึ೯‫࢝‬f 1.1TheOpenUniversityofHongKong,¨theUniversity©(formerlyTheOpenLearningInstituteofHongKong,¨theInstitute©),wasestablishedasabodycorporateon25thMay1989underTheOpenLearningInstituteofHongKongOrdinance1989fortheprovisionofopportunitiesforhighereducationinHongKongbymeansofopenlearningandtherebytoadvancelearningandknowledge,andtoenhanceeconomicandsocialdevelopmentinHongKong. 1.2࣬ኽᆽִͭ݁ၾɽኪʘගٙ༶Ъᗫ‫˜ٙڷ‬Б݁τર௪ҙ፽™dִ݁׵ӊ‫ࡈ‬ৌ݁ϋ‫ܓ‬ᅡಛʚɽኪᏐ˹௴ࣧʿਿ‫ܔ‬ක˕dٜЇɓɘɘɚāɓɘɘɧϋ‫˟ܓ‬f੽ɓɘɘɧāɓɘɘ̬ϋ‫ܓ‬ක֐dɽኪ˸І‫ޮࠋ‬ᑦ˙ό຾ᐄf 1.2UndertheMemorandumofAdministrationArrangementswhichprovidestheframeworkfortheoperationalrelationshipbetweentheGovernmentandtheUniversity,theGovernmentmetthesettingupandcapitalcostsoftheUniversitybygivingagrantineachfinancialyearupto1992/1993.Startingfrom1993/1994,theUniversitybecameself-financing. 1.3ɓɘɘʞϋʬ˜d‫࠰‬ಥኪஔ൙ᄲ҅ஷཀ࿁ኪ৫ሙ೻ආБٙୋɧϣ൙ᄲdִ݁׵ɓɘɘʬϋɤ˜ܲ๫‫࠰‬ಥኪஔ൙ᄲ҅ٙ‫ܔ‬ᙄdબʚኪ৫ІҢ൙ᄲ༟ࣸd̙˸ІБ൙ᄲ‫ה‬ϞኪЗሙ೻fͭ‫҅ج‬׵ɓɘɘɖϋʞ˜ɚɤɓ˚ஷཀə‫࠰‬ಥʮකආ‫ࡌ‬ኪ৫€‫ࡌ‬‫ૢࠈ‬Է€1997dኪ৫ᎇу׵ɓɘɘɖϋʞ˜ɧɤ˚ʺࣸ‫މ‬ɽኪdԨᄻৰ‫࠰‬ಥʮකආ‫ࡌ‬ኪ৫ૢԷ€1989ʿ‫࠰‬ಥʮකආ‫ࡌ‬ኪ৫€‫ૢࠈࡌ‬Է€1997d͟‫࠰‬ಥʮකɽኪૢԷ՟˾f 1.3UponthethirdreviewoftheInstitutebyHongKongCouncilforAcademicreditation(¨HKCAA©)inJune1995andtheessfultransferofreditingrolefromHKCAA,theGovernmentconfirmedtheInstitute§sreditingstatustovalidateitsowndegreeprogrammesinOctober1996.On30thMay1997,theInstitutewasupgradedtoauniversityfollowingTheOpenLearningInstituteofHongKong(Amendment)Ordinance1997passedbytheLegislativeCouncilon21stMay1997.TheOpenLearningInstituteofHongKongOrdinance1989andTheOpenLearningInstituteofHongKong(Amendment)Ordinance1997hadbeenrepealedandsupersededbyTheOpenUniversityofHongKongOrdinance. 1.4ɽኪɿʮ̡ٙ˴‫ุࠅ‬ਕΐ׵ၝΥৌਕజ‫ڌ‬‫ڝ‬ൗ10fɽኪʿՉɿʮ̡୕၈‫˜މ‬ණྠ™f 1.4TheprincipalactivitiesoftheUniversity§ssubsidiariesaresetoutinnote10totheconsolidatedfinancialstatements.TheUniversityanditssubsidiariesarecollectivelyreferredtoasthe¨Group©. 1.5ɽኪٙൗ̅ήѧ‫࠰މ‬ಥɘᎲО˖͞‫ى‬ฌ൑30໮f 1.5Theaddressofitsregisteredofficeis30GoodShepherdStreet,Homantin,Kowloon,HongKong. 1.6ৰ̤ЪႭ׼d͉ၝΥৌਕజ‫˸ڌ‬ಥ࿆ɷʩ‫މ‬ఊЗf 1.6TheseconsolidatedfinancialstatementsarepresentedinthousandsofunitsofHKdollars($§000),unlessotherwisestated.
2.һҷৌਕϋ‫ܓ‬ϋഐ˚
2.ChangeofFinancialYearEndDate ࣬ኽɽኪ໨ԫึ׵ɚཧɓɞϋɤɓ˜ɤʞ˚ʘӔᙄd͉ɽኪʘৌ݁ϋ‫ܓ‬ϋഐ˚͟ɧ˜ɧɤɓ˚һҷ‫މ‬ɞ˜ɧɤɓ˚f༈һҷ݊‫މ‬əԴৌ݁ϋ‫ܓ‬༧ࣧዝ‫ڌ‬ɓ‫ߧ‬f PursuanttoaresolutionoftheCouncilMeetingdated15thNovember2018,theUniversity§sfinancialyearenddatehasbeenchangedfrom31stMarchto31stAugust.Thechangeistoalignwiththeacademiccalendar. 2019-2020ৌਕజѓFINANCIALREPORT 018 ၝΥৌਕజ‫ڝڌ‬ൗNOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS ˸ಥʩഐၑExpressedinHongKongdollars
3.˴‫݁ࠇึࠅ‬ഄ฿‫ࠅ‬
3.Summaryofsignificantountingpolicies ɨࠦΐ̈ᇜႡ͉ၝΥৌਕజ‫ࣛڌ‬મٙ͜˴‫݁ࠇึࠅ‬ഄfৰ̤ЪႭ׼dၝΥৌਕజ‫ڌ‬ʕ΢ৌ݁ಂ‫/ܓ‬ϋ‫ٙܓ‬༟ࣘѩમ͜வԬ݁ഄΐͪf Theprincipalountingpoliciesappliedinthepreparationoftheseconsolidatedfinancialstatementsaresetoutbelow.Thesepolicieshavebeenconsistentlyappliedtoallthefinancialperiods/yearspresented,unlessotherwisestated. 3.1ᇜՓਿ๟ 3.1Basisofpreparation ͉ၝΥৌਕజ‫ܲ݊ڌ‬๫‫ה‬Ϟ‫޴‬ᗫٙ‫࠰‬ಥึ‫ࢪࠇ‬ʮึ€ึ‫ࢪࠇ‬ʮึ೯бٙ‫࠰‬ಥৌਕజѓ๟‫ۆ‬ձ‫࠰‬ಥึ‫ࠇ‬๟‫ۆ‬ʿՉ༕ᙑ€୕၈‫މ‬ৌਕజѓ๟‫ٙۆ‬஝֛f͉ၝΥৌਕజ‫֐ࡡ͜ضڌ‬ϓ͉ᇜႡdઓஷཀฦू‫ڌ‬ˀ݈ʮ̻ᄆ‫࠽‬ᜊʷ֛ٙ݅‫ږ‬ፄ༟ପʿ‫ږ͛ࠃ‬ፄʈՈમ͜ʮ̻‫ࠇ࠽‬ၑf TheconsolidatedfinancialstatementshavebeenpreparedinordancewithallapplicableHongKongFinancialReportingStandards(¨HKFRS©),HongKongountingStandards(¨HKAS©)andinterpretations(collectivelyHKFRS)issuedbytheHongKongInstituteofCertifiedPublicountants(¨HKICPA©).Theyhavebeenpreparedunderthehistoricalcostconvention,asmodifiedbytherevaluationofdesignatedfinancialassetsatfairvaluethroughprofitorlossandderivativefinancialinstruments,whicharecarriedatfairvalue. ܲৌਕజѓ๟‫ࠅٙۆ‬ӋdίᇜႡ͉ၝΥৌਕజ‫ࣛڌ‬ც‫ࠅ‬Ъ̈߰ʍࠠ‫ࠇึٙࠅ‬П‫ࠇ‬dΝࣛ၍ଣᄴίમ͉͜ණྠٙึ‫݁ࠇ‬ഄࣛɰ‫ࠅ‬Ъ̈кᓙf‫ڝ‬ൗ5ΐ̈əऒʿ༰εкᓙ‫א‬༰ልᕏd‫הא‬ЪٙП‫ࠇ‬࿁ၝΥৌਕజ‫ڌ‬Ϟࠠ‫ࠅ‬ᅂᚤٙή˙f ThepreparationofconsolidatedfinancialstatementsinconformitywithHKFRSrequirestheuseofcertaincriticalountingestimates.ItalsorequiresmanagementtoexerciseitsjudgementintheprocessofapplyingtheGroup§sountingpolicies.Theareasinvolvingahigherdegreeofjudgementplexity,orareaswhereassumptionsandestimatesaresignificanttotheconsolidatedfinancialstatementsaredisclosedinnote5. ͉ණྠʊ׵ɚཧɓɘϋ̬˜ɓ˚‫א‬ʘ‫ܝ‬ක֐ٙৌ݁ಂ‫࠯ܓ‬ϣમॶɨΐอ๟‫ۆ‬e຾‫ࡌ‬‫ࠈ‬ʘ๟‫ۆ‬ʿ༕ᙑ: Thefollowingnewstandards,amendmentstostandardsandinterpretationshavebeenadoptedbytheGroupforthefirsttimeforthefinancialperiodbeginningon1stApril2019: ϋ‫ܓ‬ҷආ ɚཧɓʞϋЇɚཧɓɖϋ඄ಂٙϋ‫ܓ‬ҷආ Annualimprovements AnnualimprovementstoHKFRSs2015-2017cycle ‫࠰‬ಥৌਕజѓ ॡ༣ ๟‫ۆ‬ୋ16໮ HKFRS16 Leases ‫࠰‬ಥ€਷ყৌਕజѓ༕ᙑ։‫ࡰ‬ึÑ༕ᙑୋ23໮ ‫೼੻ה‬ஈଣʘʔᆽ֛‫׌‬ HK(IFRIC)Interpretation23 Uncertaintyoveretaxtreatments ৰϤ˸̮dՉቱ׵ɚཧɓɘϋ̬˜ɓ˚‫א‬ʘ‫ܝ‬ක֐ٙৌ݁ಂ‫ࣖ͛ܓ‬ʘ‫ࡌ‬ҷ࿁ණྠԨೌࠠɽᅂᚤf Apartfromtheabove,nootheramendmentsthataremandatoryforthefinancialmencingon1stApril2019arerelevantandapplicabletotheGroup. 019 ၝΥৌਕజ‫ڝڌ‬ൗNOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS ˸ಥʩഐၑExpressedinHongKongdollars
3.˴‫݁ࠇึࠅ‬ഄ฿‫€ࠅ‬ᚃ 3.1ᇜՓਿ๟€ᚃ
3.Summaryofsignificantountingpolicies(continued) 3.1Basisofpreparation(continued) ึ‫݁ࠇ‬ഄٙᜊਗ Changeinountingpolicies ͉ණྠʊІɚཧɓɘϋ̬˜ɓ˚ৎમॶ‫࠰‬ಥৌਕజѓ๟‫ۆ‬ୋ16໮˜ॡ༣™f‫޴‬ᗫࠠอʱᗳʿሜ዆׵ɚཧɓɘϋ̬˜ɓ˚ʘಂ‫ڋ‬ၝΥ༟ପ‫ࠋ‬ව‫ڌ‬ʫᆽႩfί༈ഃึ‫ࠇ‬๟‫޴ۆ‬ᗫཀನૢ˖ʪ஢ʘઋ‫ر‬ɨdɚཧɓɞ/ɓɘϋ‫ܓ‬ʘˢ༰ᅰο͊ʚࠠΐf TheGrouphasadoptedHKFRS16¦Leases§from1stApril2019,whichresultedinchangesinountingpoliciesandadjustmentstotheamountsrecognisedinthefinancialstatements.InordancewiththetransitionalprovisionsinHKFRS16,parativefigureshavenotbeenrestated. મॶ‫࠰‬ಥৌਕజѓ๟‫ۆ‬ୋ16໮ʘᅂᚤ EffectsofadoptionofHKFRS16 ‫࠰‬ಥৌਕజѓ๟‫ۆ‬ୋ16໮˴‫ࠅ‬ᅂᚤණྠఱ຾ᐄॡ༣ٙึ‫ࠇ‬ஈଣf࣬ኽอ‫ࠈ‬๟‫ۆ‬d༟ପ€ॡ༣༟ପʘԴ͜ᛆʿ˕˹ॡ‫ږ‬ʘ‫ږ‬ፄ‫ࠋ‬ව඲׵ၝΥ༟ପ‫ࠋ‬ව‫ڌ‬ᆽႩɝሪf HKFRS16affectsprimarilytheountingfortheGroup§soperatingmitments.UnderHKFRS16,anasset(therighttousetheleaseditem)andafinancialliabilitytopayrentalsarerecognisedontheconsolidatedbalancesheet. Ъ‫וމ‬ॡɛdණྠ͟ɚཧɓɘϋ̬˜ɓ˚ৎʊᏐ͜຾‫ٙࠈࡌ‬৛๑˙όԸમॶϤ๟‫ۆ‬f࣬ኽϤ˙όd(i)ཀֻಂ‫/ܓ‬ϋ‫ٙܓ‬ˢ༰ᅰοʔʚࠠΐi(ii)ණྠ‫࠯‬ϣᏐ͜‫࠰‬ಥৌਕజѓ๟‫ۆ‬ୋ16໮ʘ˚ಂd݊ණྠ‫࠯‬ϣᏐ͜Ϥ๟‫ٙۆ‬஝֛ʘಂ‫ܓ‬జѓಂගʘ‫˚࠯‬dуɚཧɓɘϋ̬˜ɓ˚iʿ(iii)‫ה‬ϞԴ͜ᛆ༟ପІॡ༣ಂක֐˚ٙॡ༣‫ࠋ‬ව‫ࠇ‬ඎ(ܼ̍࿁΂Оཫ˹‫א‬Ꮠ‫ࠇ‬ॡ༣ක˕Ъ̈ሜ዆)f Asalessee,theGrouphasappliedthestandardusingthemodifiedretrospectiveapproachfrom1stApril2019.Underthemodifiedretrospectiveapproach,(i)parativeinformationforpriorperiods/yearsisnotrestated;(ii)thedateoftheinitialapplicationofHKFRS16isthefirstdayoftheannualreportingperiodinwhichtheGroupfirstappliestherequirementofHKFRS16,i.e.1stApril2019;and(iii)allright-of-useassetsweremeasuredattheamountoftheleaseliabilityonadoption(adjustedforanyprepaidorruedleasepayments). ͉ණྠʊ࣬ኽอ๟‫ۆ‬൙П‫ה‬Ϟॡ༣Υ‫ߒ‬d˸ʿʔୌΥॡ༣່֛ٙΥ‫ߒ‬f׵‫࠯‬ϣᏐ͜‫࠰‬ಥৌਕజѓ๟‫ۆ‬ୋ16໮ࣛdණྠ˸ֻ࣬ኽ‫࠰‬ಥึ‫ࠇ‬๟‫ۆ‬ୋ17໮˜ॡ༣™ᓥᗳ‫މ‬ᐄ༶ॡ༣ٙධͦdʊᏐ͜˸ɨ༈๟‫הۆ‬ʪ஢ཀನЇ‫࠰‬ಥৌਕజѓ๟‫ۆ‬ୋ16໮̙ٙБᛆ֝˙‫ج‬j TheGrouphasassessedallleasecontractsaswellascontractswhichdonotsatisfytheleasedefinitionunderthenewstandard.InapplyingHKFRS16forthefirsttime,theGrouphasusedthefollowingpracticalexpedientspermittedbythestandardontransitiontoHKFRS16forthoseleaseswhichwerepreviouslyclassifiedasoperatingleasesunderHKAS17¦Leases§: (i)࿁ՈϞΥଣ‫޴‬Чतᅄٙॡ༣ଡ଼ΥԴ͜ఊɓ൨ତଟi (i)Theuseofasinglediscountratetoaportfolioofleaseswithreasonablysimilarcharacteristics; (ii)࿁׵ɚཧɓɘϋ̬˜ɓ˚௵ቱॡ༣ಂˇ׵ɤɚ‫ٙ˜ࡈ‬ᐄ༶ॡ༣ٙึ‫ࠇ‬ஈଣ‫೵މ‬ಂॡ༣i (ii)Theountingforoperatingleaseswitharemainingleasetermoflessthan12monthsasat1stApril2019asshort-termleases; (iii)ί‫࠯‬ϣᏐ͜˚ಂ׵‫ࠇ‬ඎԴ͜ᛆ༟ପࣛʔܼ̍‫ٜ֐ڋ‬ટϓ͉iʿ (iii)Theexclusionofinitialdirectcostsforthemeasurementoftheright-of-useassetatthedateofinitialapplication;and (iv)຅Υ‫̍ߒ‬ўַ‫אڗ‬୞˟ॡ༣ٙ፯኿ࣛd׵ԫ‫ܝ‬ᆽ֛ॡ༣ಂf (iv)Theuseofhindsightindeterminingtheleasetermwherethecontractcontainsoptionstoextendorterminatethelease. 2019-2020ৌਕజѓFINANCIALREPORT 020 ၝΥৌਕజ‫ڝڌ‬ൗNOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS ˸ಥʩഐၑExpressedinHongKongdollars
3.˴‫݁ࠇึࠅ‬ഄ฿‫€ࠅ‬ᚃ 3.1ᇜՓਿ๟€ᚃึ‫݁ࠇ‬ഄٙᜊਗ€ᚃ
3.Summaryofsignificantountingpolicies(continued) 3.1Basisofpreparation(continued)Changeinountingpolicies(continued) ɨ‫ڌ‬༆ᙑəᏐ͜‫࠰‬ಥึ‫ࠇ‬๟‫ۆ‬ୋ17໮˜ॡ༣™׵ɚཧɓɘϋɧ˜ɧɤɓ˚‫מ‬ᚣٙ຾ᐄॡ༣‫˹ו‬ಛධၾᏐ͜‫࠰‬ಥৌਕజѓ๟‫ۆ‬ୋ16໮׵ɚཧɓɘϋ̬˜ɓ˚ᆽႩٙॡ༣‫ࠋ‬වʘගٙ‫ࢨ‬ᕘj Thetablebelowexplainsthedifferencebetweenoperatingmitmentsdisclosedat31stMarch2019byapplyingHKAS17Leasesandleaseliabilitiesrecognisedat1stApril2019byapplyingHKFRS16: ׵ɚཧɓɘϋɧ˜ɧɤɓ˚ٙ຾ᐄॡ༣‫˹ו‬ಛධ̋j࿁ॡ༣ಂٙʔΝஈଣ‫ה‬Ъʘሜ዆ಯj˸ٜᇞ˙όᆽႩ‫މ‬຾ᐄॡ༣ක˕ٙ ೵ಂॡ༣ಯjɚཧɓɘϋ̬˜ɓ˚჈ᄣ‫࠾‬ಛлଟ ൨ତʘᅂᚤ* ׵ɚཧɓɘϋ̬˜ɓ˚ᆽႩٙॡ༣‫ࠋ‬වಯj‫ݴڢ‬ਗ௅ʱ ‫ݴ‬ਗ௅ʱ *჈ᄣ‫࠾‬ಛлଟٙ̋ᛆ̻ѩᅰ‫މ‬3.84%f $'000 15,74910,130 (122) (1,601) 24,156(14,461) 9,695 Operatingmitmentsat31stMarch2019Add:AdjustmentsasaresultofdifferenttreatmentsofleasetermLess:Short-termleasesrecognisedonastraight-linebasis asoperatingleaseexpenseLess:Effectfromdiscountingatincrementalborrowingrate at1stApril2019* Leaseliabilitiesrecognisedat1stApril2019Less:Non-currentportion Currentportion *Theweightedaverageincrementalborrowingratewas3.84%. $'000 15,74910,130 (122) (1,601) 24,156(14,461) 9,695 ͉ණྠ׵મॶ‫࠰‬ಥৌਕజѓ๟‫ۆ‬ୋ16໮ϾաՑٙᅂᚤνɨj ၝΥ༟ପ‫ࠋ‬ව‫ڌ‬€࿜፽ ׵ɚཧɓɘϋ ɧ˜ɧɤɓ˚ $'000 મॶ‫࠰‬ಥৌਕజѓ ๟‫ۆ‬ୋ16໮$'000 ׵ɚཧɓɘϋ ̬˜ɓ˚$'000 ‫ݴڢ‬ਗ༟ପԴ͜ᛆ༟ପɺήԴ͜ᛆ 5,257 29,413(5,257) 29,413- ‫ݴ‬ਗ‫ࠋ‬වॡ༣‫ࠋ‬ව‫ݴ‬ਗ௅ʱ - 9,6959,695 ‫ݴڢ‬ਗ‫ࠋ‬වॡ༣‫ࠋ‬ව - 14,46114,461 TheeffectsoftheadoptionofHKFRS16areasfollows: Consolidatedbalancesheet(extract) Non-currentassetsRight-of-useassetsLanduseright CurrentliabilitiesCurrentportionofleaseliabilities Non-currentliabilitiesLeaseliabilities At31stMarch2019$§000 5,257 - - EffectsofadoptionofHKFRS16 $§000 29,413(5,257) 9,695 14,461 At1stApril2019 $§000 29,413- 9,695 14,461 021 ၝΥৌਕజ‫ڝڌ‬ൗNOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS ˸ಥʩഐၑExpressedinHongKongdollars
3.˴‫݁ࠇึࠅ‬ഄ฿‫€ࠅ‬ᚃ
3.Summaryofsignificantountingpolicies(continued) 3.1ᇜՓਿ๟€ᚃ 3.1Basisofpreparation(continued) εධ຾‫ࠈࡌ‬ʘ๟‫ۆ‬ίɚཧɚཧϋɘ˜ɓ˚‫ܝ‬ක֐ٙϋ‫ܓ‬ಂ‫ࣖ͛ܓ‬dШ͊Ϟί͉ၝΥৌਕజ‫ڌ‬ʕᏐ͜fϤഃ๟‫ۆ‬ཫಂʔึ࿁͉ණྠٙၝΥৌਕజ‫ڌ‬ிϓࠠɽᅂᚤdઓ˸ɨΐ༱٫ৰ̮j Anumberofamendmentstostandardsareeffectiveforannualperiodsbeginningafter1stSeptember2020andhavenotbeenappliedinpreparingtheseconsolidatedfinancialstatements.NoneoftheseareexpectedtohaveasignificanteffectontheconsolidatedfinancialstatementsoftheGroup,exceptthefollowingsetoutbelow: ׵ɨΐ˚ಂ‫ܝ˸א‬ʘ ึ‫ࠇ‬ϋ‫ࣖ͛ܓ‬ ‫࠰‬ಥึ‫ࠇ‬๟‫ۆ‬ୋ1໮ٙ‫ࠈࡌ‬ ‫ݴ‬ਗձ‫ݴڢ‬ਗ‫ࠋ‬වٙʱᗳ ɚཧɚɧϋɓ˜ɓ˚ ‫࠰‬ಥึ‫ࠇ‬๟‫ۆ‬ୋ1໮ʿୋ8໮ٙ‫ࠈࡌ‬ ࠠɽ‫່֛ٙ׌‬ ɚཧɚཧϋɓ˜ɓ˚ ‫࠰‬ಥึ‫ࠇ‬๟‫ۆ‬ୋ16໮ٙ‫ࠈࡌ‬ ‫ุي‬eዚኜʿண௪Ñ༺Ցཫ֛Դً͜࿒‫ٙۃ‬ᄆಛ ɚཧɚɚϋɓ˜ɓ˚ ‫࠰‬ಥৌਕజѓ๟‫ۆ‬ୋ3໮ٙ‫ࠈࡌ‬ ุਕ່֛ٙ ɚཧɚཧϋɓ˜ɓ˚ ‫࠰‬ಥৌਕజѓ๟‫ۆ‬ୋ3໮ٙ‫ࠈࡌ‬ ࿁฿ׂ࣪‫͜ˏٙݖ‬ɚཧɚɚϋɓ˜ɓ˚ ‫࠰‬ಥৌਕజѓ๟‫ۆ‬ୋ9໮e‫࠰‬ಥึ‫ࠇ‬๟‫ۆ‬ୋ39໮ʿ‫࠰‬ಥৌਕజѓ๟‫ۆ‬ୋ7໮ٙ‫ࠈࡌ‬ лଟਿ๟ҷࠧ ɚཧɚཧϋɓ˜ɓ˚ ‫࠰‬ಥৌਕజѓ๟‫ۆ‬ୋ16໮ٙ‫ࠈࡌ‬ ၾCOVID-19‫޴‬ᗫٙॡ‫ږ‬Ꮄ౉ ɚཧɚཧϋʬ˜ɓ˚ AmendmentstoHKAS1 AmendmentstoHKAS1andHKAS8 AmendmentstoHKAS16 AmendmentstoHKFRS3 AmendmentstoHKFRS3 AmendmentstoHKFRS9,HKAS39andHKFRS7 ClassificationofLiabilitiesasCurrentorNon-Current Definitionofmaterial Effectiveforountingperiodsbeginningonorafter 1stJanuary2023 1stJanuary2020 Property,PlantandEquipment:ProceedsbeforeIntendedUse 1stJanuary2022 Definitionofabusiness 1stJanuary2020 ReferencetotheConceptualFramework Interestratebenchmarkreform 1stJanuary20221stJanuary2020 AmendmentstoHKFRS16 COVID-19RelatedRentConcession 1stJune2020 2019-2020ৌਕజѓFINANCIALREPORT ϋ‫ܓ‬ҷආ ɚཧɓɞϋЇɚཧɚཧϋ඄ಂಂ࿁‫࠰‬ಥৌਕజѓ๟‫ٙۆ‬ϋ‫ܓ‬ҷආ ɚཧɚɚϋɓ˜ɓ˚ ɚཧɓɞϋৌਕజѓ຾‫ٙࠈࡌ‬ৌਕజѓɚཧɚཧϋ ʘ฿ׂ࣪‫ݖ‬ ฿ׂ࣪‫ݖ‬ ɓ˜ɓ˚ ‫࠰‬ಥৌਕజѓ๟‫ۆ‬ҳ༟٫ʿՉᑌᐄ ‫֛ܙ‬ ୋ10໮ʿ‫࠰‬ಥึ‫ࠇ‬ʮ̡‫א‬ΥᐄΆุ ๟‫ۆ‬ୋ28໮ٙ‫̈ࠈࡌ‬ਯ‫ءא‬ɝ༟ପ ͉ණྠਗ਼׵͛ࣖٙ‫޴‬Ꮠৌ݁ϋ‫ܓ‬౤ॶ˸ɪ຾‫ࠈࡌ‬ʘ๟‫ۆ‬f͉ණྠତ͍൙П˸ɪ຾‫ࡌ‬‫ࠈ‬ʘ๟‫ٙۆ‬Όࠦᅂᚤf Annualimprovements AnnualimprovementstoHKFRSs2018–2020cycle 1stJanuary2022 Conceptualframeworkforfinancialreporting2018 AmendmentstoHKFRS10andHKAS28 Revisedconceptualframeworkforfinancialreporting SaleorContributionofAssetsbetweenanInvestoranditsAssociateorJointVenture 1stJanuary2020Tobedetermined TheGroupwillapplytheamendmentstostandardsintheyearofinitialapplication.TheGroupiscurrentlyassessingtheimpactoftheadoptionoftheamendmentstostandardsandisnotyetinapositiontostatewhethertheywouldhaveasignificantimpactontheGroup§sresultsofoperationsandfinancialposition. 022 ၝΥৌਕజ‫ڝڌ‬ൗNOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS ˸ಥʩഐၑExpressedinHongKongdollars
3.˴‫݁ࠇึࠅ‬ഄ฿‫€ࠅ‬ᚃ 3.2ɿʮ̡
3.Summaryofsignificantountingpolicies(continued) 3.2Subsidiaries 3.2.1ၝΥৌਕజ‫ڌ‬ 3.2.1Consolidation ɿʮ̡ܸ͉ණྠ࿁ՉՈϞછՓᛆٙ‫ה‬Ϟ˴᜗(ܼ̍ഐ࿴‫˴׌‬᜗)f຅͉ණྠΪ‫މ‬ਞၾ༈˴᜗Ͼ‫ו‬ዄ̙ᜊΫజٙࠬᎈ‫א‬ԮϞ̙ᜊΫజٙᛆूdԨϞঐɢீཀՉ࿁༈˴᜗ٙᛆɢᅂᚤϤഃΫజࣛd͉ණྠуછՓ༈˴᜗fɿʮ̡ίછՓᛆᔷ୅Ї͉ණྠʘ˚ৎΥԻɝሪfɿʮ̡ίછՓᛆ୞˟ʘ˚ৎ৾˟ΥԻɝሪf Asubsidiaryisanentity(includingastructuredentity)overwhichtheGrouphascontrol.TheGroupcontrolsanentitywhentheGroupisexposedto,orhasrightto,variablereturnsfromitsinvolvementwiththeentityandhastheabilitytoaffectthosereturnsthroughitspowerovertheentity.SubsidiariesareconsolidatedfromthedateonwhichcontrolistransferredtotheGroup.Theyaredeconsolidatedfromthedatethatcontrolceases. ᒅ൯‫ج‬ɗ͜Ъ͉ණྠᒅ൯ุਕΥԻٙɝሪ˙‫ج‬fϗᒅɿʮ̡ᔷᜫٙ˾ᄆ‫މ‬ᔷᜫ༟ପٙʮ̻‫࠽‬eऒʿٙ‫ࠋ‬වʿණྠ೯Бٰ͉ٙᛆूf‫ה‬ᔷᜫٙ࿁ᄆܼ̍‫್א‬࿁ᄆτર‫ה‬ପ͛ٙ΂О༟ପձ‫ࠋ‬වٙʮ̻‫࠽‬fุਕΥԻ‫ה‬ϗᒅ̙ٙᗆй༟ପʿ‫ו‬ዄٙ‫ࠋ‬වၾ‫א‬್‫ࠋ‬ව‫ܲ֐ڋ‬ϗᒅ˚ٙʮ̻‫ࠇ࠽‬ၑfఱ‫ࡈ‬йϗᒅਿ๟d͉ණྠ̙ܲʮʪᄆ‫ڢܲא࠽‬છՓᛆूᏐЦ஗ᒅ൯˙ଋ༟ପٙˢԷd‫ࠇ‬ඎ஗ϗᒅ˙ٙ‫ڢ‬છՓᛆूf TheGroupappliestheacquisitionmethodtoountforbinations.Theconsiderationtransferredfortheacquisitionofasubsidiaryisthefairvaluesoftheassetstransferred,theliabilitiesincurredtotheformerownersoftheacquireeandtheequityinterestsissuedbytheGroup.Theconsiderationtransferredincludesthefairvalueofanyassetorliabilityresultingfromacontingentconsiderationarrangement.Identifiableassetsacquiredandliabilitiesandcontingentliabilitiesassumedinabinationaremeasuredinitiallyattheirfairvaluesattheacquisitiondate.TheGrouprecognisesanynon-controllinginterestintheacquireeonanacquisition-byacquisitionbasis,eitheratfairvalueoratthenon-controllinginterest§sproportionateshareoftherecognisedamountsofacquiree§sassets. ᒅ൯‫޴‬ᗫϓ͉ίପ͛ࣛ˕ቖf Acquisition-relatedcostsareexpensedasincurred. ණྠʫʮ̡ʘගٙʹ׸eഐቱʿʹ׸ٙ͊ᜊତл੻ʚ˸࿁ቖf͊ᜊତฦ̰͵ʚ˸࿁ቖdৰ‫ʹڢ‬׸౤Զ‫ה‬ᔷᅡ༟ପٙಯ‫࠽‬ᗇኽfɿʮ̡జѓٙᅰᕘʊܲც‫ࠅ‬Ъ̈ҷᜊd˸ᆽ‫ڭ‬ၾ͉ණྠમٙ݁͜ഄୌΥɓ‫ߧ‬f Intra-grouptransactions,balancesandunrealisedgainsontransactionsbetweenpaniesareeliminated.Unrealisedlossesarealsoeliminatedunlessthetransactionprovidesevidenceofanimpairmentofthetransferredasset.Whennecessary,amountsreportedbysubsidiarieshavebeenadjustedtoconformwiththeGroup§sountingpolicies. 023 ၝΥৌਕజ‫ڝڌ‬ൗNOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS ˸ಥʩഐၑExpressedinHongKongdollars
3.˴‫݁ࠇึࠅ‬ഄ฿‫€ࠅ‬ᚃ 3.2ɿʮ̡€ᚃ
3.Summaryofsignificantountingpolicies(continued) 3.2Subsidiaries(continued) 3.2.1ၝΥৌਕజ‫€ڌ‬ᚃ 3.2.1Consolidation(continued) ‫ุࡊ‬ਕΥԻʱච‫ݬ‬ආБdϗᒅ˙ʘ‫ۃ‬׵஗ᒅ൯˙ܵϞٰ͉ٙᛆू׵ᒅ൯˚ಂࠠอ‫ࠇ‬ඎ‫ܲމ‬ʮ̻‫ࠇ࠽‬ɝޮᑦf Ifthebinationisachievedinstages,th