Page 121 - Urban Renewal Authority 2023-24 Annual Report

NOTES TO THE FINANCIAL STATEMENTS

(expressed in Hong Kong Dollars)

1. General information

The Urban Renewal Authority (the “Authority”) is a statutory body established by the Government of the
Hong Kong Special Administrative Region (“Government”) under the Urban Renewal Authority Ordinance
(Chapter 563). The principal activities of the Authority and its subsidiaries (the “Group”) have been to
promote urban renewal in Hong Kong by way of redevelopment, rehabilitation, retrofitting, preservation
and revitalisation. As a result of the Urban Renewal Strategy promulgated on 24 February 2011, the Group
is to focus on redevelopment and rehabilitation as its core business.

The address of the Authority is 26/F, COSCO Tower, 183 Queen’s Road Central, Hong Kong.

As part of the financial support for the Authority, the Government has agreed that all urban renewal sites
for new projects set out in the Corporate Plans and Business Plans of the Authority, approved by the
Financial Secretary (“FS”) from time to time, may in principle be granted to the Authority at nominal
premium, subject to satisfying FS of the need therefor.

2. Material accounting policies

The material accounting policies applied in the preparation of these consolidated financial statements are
set out below. These policies have been consistently applied to all the years presented, unless otherwise
stated.

(a) Basis of preparation of the financial statements
The consolidated financial statements have been prepared under the historical cost convention and in
accordance with accounting principles generally accepted in Hong Kong and comply with all
applicable Hong Kong Financial Reporting Standards (“HKFRSs”) (which include all applicable
individual Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards and
Interpretations) issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”) and
the disclosure requirements of the Hong Kong Companies Ordinance.

The preparation of financial statements in conformity with HKFRSs requires the use of certain critical
accounting estimates. It also requires management to exercise its judgement in the process of
applying the Group’s accounting policies. The areas involving a higher degree of judgement or
complexity, or areas where assumptions and estimates are significant to the consolidated financial
statements, are disclosed in Note 4.

URA ANNUAL REPORT 2023-24 119