Page 134 - Urban Renewal Authority 2023-24 Annual Report
P. 134

NOTES TO THE FINANCIAL STATEMENTS





            (expressed in Hong Kong Dollars)




            2.  Material accounting policies (Continued)

                 (u)   Related parties
                     (i)   A person, or a close member of that person’s family, is related to the Group if that
                          person:
                          (1)   has control or joint control over the Group;

                          (2)   has significant influence over the Group; or

                          (3)   is a member of the key management personnel of the Group or the Group’s parent.

                     (ii)   An entity is related to the Group if any of the following conditions applies:
                          (1)   The entity and the Group are members of the same group (which means that each parent,
                              subsidiary and fellow subsidiary is related to the others).


                          (2)   The entity is a post-employment benefit plan for the benefit of employees of either the
                              Group or an entity related to the Group.

                          (3)   The entity is controlled or jointly controlled by a person identified in (i).

                          (4)   A person identified in (i)(1) has significant influence over the entity or is a member of the
                              key management personnel of the entity (or of a parent of the entity).

                          Close members of the family of a person are those family members who may be expected to
                          influence, or be influenced by, that person in their dealings with the entity.



            3.  Financial risk management and fair value of financial instruments

                 (a)   Financial risk factors
                     The Group’s activities expose it to a variety of financial risks: cash flow interest rate risk, credit risk,
                     liquidity risk and foreign exchange risk. The Group’s overall risk management programme focuses on
                     the unpredictability of financial markets and seeks to minimise the potential adverse effects on the
                     Group’s financial performance.


                     (i)   Cash flow interest rate risk
                          The Group is exposed to cash flow interest rate risk due to the fluctuation of the prevailing
                          market interest rate on bank deposits. Nevertheless, the Group’s surplus/deficit and operating
                          cash flows are substantially independent of changes in market interest rates.



















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