HKSI Institute AR2023

HKSI Institute Annual Report 2023 58 (Expressed in Hong Kong dollars unless otherwise indicated) NOTES TO THE FINANCIAL STATEMENTS 1 STATUS AND PRINCIPAL ACTIVITIES OF THE INSTITUTE Hong Kong Securities and Investment Institute (the “Institute”) was incorporated on 28 November 1997 under the Hong Kong Companies Ordinance as a company limited by guarantee. Every member of the Institute has undertaken to contribute such an amount as may be required (not exceeding HK$100) to the Institute’s assets if it should be wound up while he is a member or within one year after he ceases to be a member. The Institute and its subsidiaries (together referred to as the “Group”) offer those who are interested in pursuing a career within the financial services industry a comprehensive programme of high quality professional training, events and internationally recognised examinations which aim to assist individuals achieve their own professional goals within the industry. 2 SIGNIFICANT ACCOUNTING POLICIES (a) Statement of compliance These financial statements have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards (“HKFRSs”), which collective term includes all applicable individual Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards (“HKASs”) and Interpretations issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”) and accounting principles generally accepted in Hong Kong and the requirements of the Hong Kong Companies Ordinance. Significant accounting policies adopted by the Group are disclosed below. The HKICPA has issued certain new and revised HKFRSs that are first effective or available for early adoption for the current accounting period of the Group and the Institute. Note 3 provides information on any changes in accounting policies resulting from initial application of these developments to the extent that they are relevant to the Group for the current and prior accounting periods reflected in these financial statements. (b) Basis of preparation of the financial statements The measurement basis used in the preparation of the financial statements is the historical cost basis. These financial statements presented in Hong Kong dollars (“HK$”), unless otherwise stated. The preparation of financial statements in conformity with HKFRSs requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.