Financial Statements for the Year Ended 30 June 2007

Abstract

[evdate 2007-06-30] 香港科技大學 THE HONG KONG UNIVERSITY OF SCIENCE AND TECHNOLOGY 財務報表 Financial Statements 截止2007年6月30日止年度 For the Year Ended 30 June 2007

CONTENTS

司庫報告1-3 Treasurer's Report

獨立核數師報表4-5 Independent Auditor's Report

綜合收支報表 Consolidated Income and Expenditure Statement

大學收支報表8 -9 University Income and Expenditure Statement

綜合資產負債表10-11 Consolidated Balance Sheet

大學資產負債表12-13 University Balance sheet

綜合基金變動表14 -15 Consolidated Statement of Changes in Fund Balances

大學基金變動表16-17 University Statement of Changes in Fund Balances

綜合現金流動表18-19 Consolidated Cash Flow Statement

財務報表附註20 -67 Notes to the Financial Statements

香港科技大學 截止2007年6月30日止年度 財務報表 HONG KONG UNIVERSITYOF SCIENCE AND TECHNOLOGY FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007

司庫報告 TREASURER'S REPORT

全年營運情況 受惠於配對補助金計劃，大學於上一個年度錄得 802,200,000元盈餘，創歷史新高，並於2006/07 年度，持續錄得4873600,000元的可觀盈餘。

綜合收入 本年度綜合收入為2，721，100，000元（2005／06年度 為3，040，600，000元），其中，，647，700，000元 （60．6％）為政府補助，537，600，000元（19．8％）為學 費及課程收費，141，500，000元（5．2％）為利息及投 資收入，194，600，000元 （7.1%）為捐款， 136，800，000元（5．0%）為輔助服務收入及62，900，000 元（2.3%）其他項目收入。由於從第三期配對補助 金計劃所得之捐款及配對補助金減少致令綜合收 入下降。

隨著自負盈虧之教育課程及活動的持續擴展，相 關的學費及課程收費增加了大學的收益。由於本 年之平均銀行利率較2005/06年為高，加上現金 餘額的增長，大學在投資及利息方面的收益皆有 增長。

大學於2006年2月成功完成第二期配對補助金計 劃（2005/06年度，大學共籌集了約700，000，000 元的配對補助金及相關捐款），並隨即在第三期 配對補助金計劃下為2006/07年度加添了約 300，000，000元的捐款及相關配對補助金。

綜合開支 本年度綜合開支為2，237，600，000元2005/06年度 為2，241，900，000元），其中，1，659，000，000元 （74．2％）為學術及研究活動，114，600，000元（5．1％） 為管理及一般事務，334，400，000元（14．9％）為校 舍及有關費用，129，600，000元（5．8％）為其他項 目。

Operating Results for the Year After having achieved a record-high surplus of $802.2 grants had been received for 2005/06), the University million in the last financial year, the University continued to produce a handsome surplus of $487.6 million for 2006/07 as a result of the UGC Matching Grant Schemes.

Consolidated Income Consolidated income for the year was $2,721.1 million ($3,040.6 million in 2005/06), comprising $1,647.7 million (60.6%) from government subventions, $537.6 million (19.8%) from tuition and program fees, $141.5 million (5.2%) from interest and investment income, $194.6 million (7.1%) from donations, $136.8 million (5.0%) from auxiliary services and other income of $62.9 million (2.3%). The decline in consolidated income in 2006/07 was mainly attributable to the decrease in donations and related matching grants received under the third Matching Grant Scheme.

With the continuous expansion in self-financing education programs and activities, additional revenue was collected from tuition and program fees. Investment and interest income has also increased due to a higher average bank interest rate than that of 2005/06 and the growth in surplus cash balance.

Shortly after the successful completion of the second Matching Grant Scheme in February 2006 (a total of some $700 million of donations and related matching grants had been received for 2005/060,the University secured further donations and related matching grants of some $300 million under the third Matching Grant Scheme for 2006/07.

Consolidated Expenditure

Consolidated expenditure for the year was $2,237.6 million ($2,241.9 million in 2005/06), comprising 1,659 million (74.2%) for learning and research activities, $1 14.6 million (5.1%) for management and general expenditure, $334.4 million (14.9%) for premises and related expenses, and $129.6 million (5.8%) for other items.

1

大學的總開支基本上維持平穩，於薪金支出方面 有所下調，惟下調幅度被學習、研究及學生活動 等營浬支出的增加所抵消。

因為需要支付自願離職計劃的一筆過款項而導致 2005/06年度的不尋常高級薪金支出。由於 2005/06年度的自困離職計劃，因而節省了 2006/07年度的薪金支出，但部分被2007年4月跟 隨公務員的加薪調整所抵銷。

教資會資助活 動 本年度教資會撥款為1，611，500，000元，佔政府補 助的97．8％，包括整筆經常撥款1，216，400，000元 ，為房屋、研究、建設工程、退還差的及地租而 設的指定撥款共279，000，000元，額外配對補助撥 款為11，100，000元。

整筆經常撥款與來自學費及其他收入總額為 1，601，900，000元，而教資會資助經常開支為 1，503，200，000元，按照教資會的指引 98，700，000元（2005/06年度為中7，700，000元）的盈餘 已轉田至一般及發展儲備。於2007年6月30日， 儲備餘額為1，019，600，000元。

建設項目 為配合大學計劃中的發展方向，一系列的建設項 目正在籌建之中。香港的高等教育將進入四年制 的新時代，預期大學對校園宿位及學術場所的需 求將持續上升，為此大學將增建新的學生宿舍及 擴建學術大樓。其它校園發展項目還包括科大高 等研究院大樓及宿舍、李兆基商學院大樓等等。 國內的發展中項目則包括位於南沙的霍英東研究 院及深圳的香港科大產學研大樓。

While the total expenditure was maintained at a steady level, there was a decrease in salaries expense which was offset by an increase in operating expenditure for learning and research, as well as student activities.

A one-off voluntary redundancy (VR) payment was made in 2005/06 resulting in the unusually high level of salaries expenditure in that year. While salaries saving was achieved in 2006/07 as a result of the 2005/06 VR Scheme, it was partly offset by an upward cost of living salary adjustment made in line with that for the civil servants effective April 2007.

UGC-funded Activities

UGC grants accounted for $1,611.5 million or 97.8% of government subventions. This included recurrent block grant of $1,216.4 million; earmarked grants for housing, research, capital works and rates and government rent refunds of $279.0 million; and extra matching grants of $116.1 million.

The recurrent block grant together with tuition fees and other income totalled $1,601.9 million for the year, and related expenditure amounted to $1,503.2 million. The

surplus of $98.7 million ($47.7 million in 2005/06) was transferred to the General and Development Reserve in accordance with University Grants Committee's guidelines. As at 30 June 2007, the reserve balance stood at $1,019.6 million.

Capital Projects

To facilitate the University's planned development, a number of capital projects are in the pipeline. New student halls and academic extensions will be constructed to cope with the anticipated increasing demand for on-campus residence and academic space as a result of the change in the tertiary education system to a 4-year UG-program. Other on-campus development projects include the Institute for Advanced Study (IAS) Building and Residences as well as the Lee Shau Kee Business Building. Across the border in the Mainland, the Fok Ying Tung Graduate School in Nansha and the HKUST IER (Industry- Education-Research) Building in Shenzhen are also underway.

展望

所有為2012年實行四年新學制而興建的各項 校園基礎設施建設項目都是大學2020策略計 劃的組成部分，確保大學可順利完成為教學與研 究所訂下的各項目標。要進一步支持大學對教學 及研究卓越領域的追求，一個具備先進而完善資 訊信息系統的高效率行政部門是必不可少的。大 學最近進行揀選企業資源計劃系統（ERP），這是 新出台的信息系統發展策略的一環，不但能幫助 大學為學生及職員提供更好及更快捷的服務，更 能提升資訊內容的質素以助高層管理人員決策之 用。

教資會為四年新學制提供了項目撥款，使大學可 以進行各項基建及信息設施的發展。大學亦會抽 調部分非教資會資源及教資會儲備資金補助相關 的發展。大學為將於四年新學制下收到的經常撥 款作出更完善的內部資源分配，最近成立了一個 工作小組，就預算模式進行檢討並提交建議。今 後，大學將積極加強籌資能力，並繼續堅持謹慎 理財的原則，確保大學在新學制下仍能保持健康 的財務狀況。

已簽署 大學司庫 孫德基 2007年11月9日

Outlook

The capital projects for the development of the campus physical infrastructure in preparation for the 4-year UG-program in 2012 is part of the University Strategic Plan 2005-2020 to ensure our teaching and research goals are met. To further support the University 's pursuit of excellence in teaching and research, an efficient and effective administration supported by a state-of-the-art information infrastructure is also very important. The University has been assessing commercial Enterprise Resources Planning (ERP) system packages as part of its Information System (IS) Strategy roll-out. The implementation of the strategy will enable the University to provide better and faster services to students and staff, and enhance the quality of management information for senior management's decision making.

These physical and information infrastructure developments are made possible by capital grants to be provided by UGC under the 4-year UG-program system. The University will also draw on its non-UGC resources as well as its UGC reserves to supplement the development. To facilitate the University to make continuous improvement on its internal resources allocation for recurrent grants to be received under the 4-year UG-program, a taskforce has been established recently to review and make recommendations on budgetary methodologies and models. The University will also continue to strengthen its fund-raising capability and uphold a prudent financial management approach to ensure a healthy financial position in its transition to the 4-year UG-program system and beyond.

SIGNED David Tak-Kei SUN Treasurer of the University 9 November 2007

獨立核數師報告書 INDEPENDENT AUDITOR'S REPORT

Deloitte 德勤

致：香港科技大學校董會 本核數師行已完成審核載於第6直至第67頁內的 香港科技大學(”大學”)及其附屬公司(以下合稱” 集團”)的財務報表，該等財務報表包括於2007年 6月30日的綜合資產負債表與大學資產負債表， 以及截至當日止年度的綜合收支報表與大學收 支報表、綜合基金變動表與大學基金變動表與 綜合現金流動表，以及主要會計政策概要及其 他附註解釋。

校董會在財務報表的責任 貴校董會負責遵照香港會計師公會頒佈的香港 財務報表準則，編製及其實公乎地呈列該等財 務報表。有關責任包括設計、實施及維護與編 製及其實而公平地呈列財務報表有關的內部監 控，以使財務報表不存在由於欺詐或錯誤引起 之重大錯誤陳述、選擇並應用適當的會計政 策；及在不同情況下作出合理的會計估計。

To : The Council of The Hong Kong University of Science and Technology

We have audited the financial statements of The Hong Kong University of Science and Technology (the 'University') and its subsidiaries (collectively referred to as the 'Group') set out on pages 6 to 67, which comprise the consolidated and University balance sheets as at 30 June 2007, and the consolidated and University income and expenditure statements, the consolidated and University statements of changes in fund balances and the consolidated cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory notes.

Council's responsibility for the financial statements The Council of the University is responsible for the preparation and the true and fair presentation of these financial statements in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants (the 'HKICPA'). This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and the true and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

核數師的責任

本行的責任乃根據核數的結果，對該等財務報 表發表意見，並僅向 貴校董會報告，除此之 外本報告概不可用作其他用途。本行無須就本 報告的內容向任何其他人士負上或承擔任何法 律責任。本行乃按照香港會計師公會頒佈的香 港核數準則進行審核工作。該等準則規定本行 須遵照道德規定以計劃及進行審核，以合理確 保此等財務報表是否存有重大錯誤陳述。

審核包括進行程序以取得與財務報表所載金額 及披露事項有關的審核憑證。選取的該等程序 規乎核數師的判斷，包括評估由於欺詐或錯誤 引起財務報表出現重大錯誤陳述的風險。在作 出該等風險評估時，核數師考慮與實體編製及 其實而公平地呈列財務報表有關的內部監控， 以設計適用於不同情況的審核程序，但並非為 對實體的內部監控是否有效表達意見。審核亦 包括評價 貴校董會所採用的會計政策是否恰 當及所作的會計估算是否合理，以及評價財務 報表的整體呈列方式。

本行相信，本行已取得充份恰當的審核憑證， 可為本行提供審核意見的基礎。

意見 本行認為，財務報表已按照香港財務報告準則 其實及公平地反映大學及集團於2007年6月30日 的財務狀況大學及集團截至當日止年度的收支 結算和集團之現金流動。

已簽署 德勤．關黃陳方會計師行 香港執業會計師 2007年11 月9日

Auditor's responsibility

Our responsibility is to express an opinion on these financial statements based on our audit and to report our opinion solely to you, as a body, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report. We conducted our audit in accordance with Hong Kong Standards on Auditing issued by the HKICPA. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and true and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Council, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements give a true and fair view of the state of affairs of the University and of the Group as at 30 June 2007 and of the results of the University and the Group and the Group's cash flows for the year then ended in accordance with Hong Kong Financial Reporting Standards.

SIGNED Deloitte Touche Tohmatsu Certified Public Accountants HONG KONG 9 November 2007

綜合收支報表 截止2007年6月30日止年度

CONSOLIDATED INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 30 JUNE 2007

2007 Notes $'000 $000

收入 Income 政府輔助 Government Subventions 學費課程及其他收費 Tuition, Programmes and Other Fees 利息及投資收入 Interest and Investment Income 外界捐款 Donations and Benefactions 輔助服務 Auxiliary Services 其他收入 Other Income

開支 Expenditure 學術及研究 Learning and Research 教學及研究 Instruction and Research 圖書館 Library 中央電腦設備 Central Computing Facilities 其他教學服務 Other Academic Services 校務支緩 Institutional Support 管理及一般事務 Management and General 校舍及有關費用 Premises and Related Expenses 學生及一般教育服務 Student and General Education Services 其他活動 Other Activities 本年度營運所得盈餘 Surplus from operation for the year

CONSOLIDATED INCOME AND EXPENDITURE STATEMENT (Cont'd) FOR THEYEAR ENDED 30 JUNE2007 Notes 2007 $'000 2006 $'000 所佔共同控制個體的經營業績 Share of Result of a Jointly Controlled Entity 所佔聯營公司的經營業績 Share of Result of an Associate 本年度轉撥前盈餘 Surplus for the year before transfers 轉撥 至 Transfers to : 限定基金 Restricted Funds 其他基金 Other Funds

大學收支報表 截止2007年6月30日止年度 UNIVERSITY INCOME ANDEXPENDITURE STATEMENT FOR THE YEAR ENDED 30 JUNE 2007

2007 Notes $'000

Income Government Subventions Tuition, Programmes and Other Fees Interest and Investment Income Donations and Benefactions Auxiliary Service Other Income Expenditure Learning and Research Instruction and Research Library Central Computing Facilities Other Academic Services Institutional Support Management and General Premises and Related Expenses Student and General Education Services Other Activities Surplus for the year before transfers

UNIVERSITY INCOME AND EXPENDITURE STATEMENT(Cont'd) FOR THE YEAR ENDED 30 JUNE 2007 Notes 2007 $'000 2006 $'000 Transfers to : Restricted Funds Other Funds

綜合資產負債表 2007年6月30日 CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2007

2007

Notes $'000 $'000 非流動資產 Non-Current Assets 物業及設備 Property and Equipment 持至到期日財務資產 Held-to-Maturity Financial Assets 可供出售財務資產 Available-for-Sale Financial Assets 於聯營公司權益 Interest in an Associate 於合資企業權益 Interest in a Joint Venture 定期存款 Bank Deposits 流動資產 Current Assets 存貨 Stocks 應收賬款及預付款項 Accounts Receivable and Prepayments 銀行款項及現金 Bank and Cash 流動負債 Current Liabilities 應付賬款及應計費用 Accounts Payable and Accruals 教職員福利撥備 Provision of Staff Benefits 遞延收益 Deferred Income 流動資產淨值 Net Current Assets 資產總值減流動負債 Total Assets Less Current Liabilities

CONSOLIDATED BALANCE SHEET (Cont'd) AS AT 30 JUNE 2007

Notes 2007 $'000 2006 $'000 非流動負債 Non-Current Liabilities 教職員福利撥備 Provision of Staff Benefits 資產淨值 NET ASSETS 遞延設備基金 Deferred Capital Funds 限定基金 Restricted Funds 其他基金 Other Funds 基金總和 TOTAL FUNDS

校董會於2007年11月9日核准本財務報表 Approved by the Council on 9 November 2007

已簽署 孫德基 大學司庫 SIGNED David T.K. SUN Treasurer of the University

已簽署 朱經武 校長 SIGNED Paul C.W. CHU President

已簽署 黃世邦 財務處處長 SIGNED Philip S.P. WONG Director of Finance

大學資產負債表 2007年6月30日 UNIVERSITY BALANCE SHEET AS AT 30 JUNE 2007

Non-Current Assets

Notes 2007 $'000 2006 $'000

Property and Equipment Held-to-Maturity Financial Assets Available-for-Sale Financial Assets Investment in an Associate Investments in Subsidiaries Bank Deposits Current Assets Stocks Accounts Receivable and Prepayments Bank and Cash Current Liabilities Accounts Payable and Accruals Provision of Staff Benefits Deferred Income Net Current Assets Total Assets Less Current Liabilities UNIVERSITY BALANCE SHEET (Cont'd) AS AT 30 JUNE 2007

Notes 2007 $'000 2006 $'000

Non-Current Liabilities Provision of Staff Benefits NET ASSETS Deferred Capital Funds Restricted Funds Other Funds TOTAL FUNDS 綜合基金變動表 CONSOLIDATED STATEMENT OF CHANGES IN FUND BALANCES

遞延設備基金 限定基金 其他基金 基金總和 Deferred Capital Funds Restricted Funds Other Funds Total Funds

2005 年7月 1日至結餘 Balance as at 1 July 2005

本年度盈餘 Surplus for the year 留本基金收入 Endowment Funds received 於可供出售財務資產未實現之盈利 Unrealised gain on Available-for-Sale Financial Assets 可供出售財務資產之未實現盈利於出售時被確認及轉撥至收支報表 Recognition of unrealised gain on disposal of Available-for-Sale Financial Assets transferred to income and expenditure 於年內已收及應收的輔助及捐款用作購置業務及設備 Subventions and donations received and receivable during the year for Property and Equipment 為以輔助及捐款購置的物業及設備所需折舊之款項而轉賬至收支報表 Amount transferred to income and expenditure statement representing the depreciation charge on Property and Equipment funded by subventions and donations 於聯營公司所佔法定儲備之變動 Change in share of statutory reserves of an Associate 匯兌儲備之變動 Change in exchange reserve 基金轉撥 Inter-fund transfer 2006年6月30日之結餘 Balance as at 30 June 2006

122,899 (139,537)

CONSOLIDATED STATEMENT OF CHANGES-INFUND BALANCES (Cont’d)

Deferred Capital Funds $'000 Restricted Funds $’000 Other Funds $’000 Total Funds

2006年6月30日之結餘 Balance as at 30 June 2006

Surplus for the year

Endowment Funds received

Unrealised gain on Available-for-Sale Financial Assets

Recognition of unrealised gain on disposal of Available-for-Sale Financial Assets transferred to income and expenditure (25,956) 0 (25,956)

Subventions and donations received and receivable during the year for Property and Equipment

Amount transferred to income and expenditure statement representing the depreciation charge on Property and Equipment funded by subventions and donations

Change in share of statutory reserves of an Associate

Change in exchange reserve

Inter-fund transfer

2007年6月30日之結餘 Balance as at 30 June 2007

大學基金變動表 UNIVERSITY STATEMENT OF CHANGES IN FUND BALANCES

Deferred Capital Funds Restricted Funds Other Funds Total Funds

2005年7月 1日之結餘 Balance as at 1July 2005

Surplus for the year

Endowment Funds received

Unrealised gain on Available-for-Sale Financial Assets

Recognition of unrealised gain on disposal of Available-for-Sale Financial Assets transferred to income and expenditure

Subventions and donations received and receivable during the year for Property and Equipment

Amount transferred to income and expenditure statement representing the depreciation charge on Property and Equipment funded by subventions and donations (139,537)

Inter-fund transfer

2006年6月30日之結餘 Balance as at 30 June 2006

UNIVERSITY STATEMENT OF CHANGES IN FUND BALANCES (Cont'd)

Deferred Capital Funds Restricted Other Total

2006年6月 30日之結餘 Balance as at 30 June 2006

Surplus for the year

Endowment Funds received

Unrealised gain on Available-for-Sale Financial Assets

Recognition of unrealised gain on disposal of Available-for-Sale Financial Assets transferred to income and expenditure

Subventions and donations received and receivable during the year for Property and Equipment

Amount transferred to income and expenditure statement representing the depreciation charge on Property and Equipment funded by subventions and donations

Inter-fund transfer

2007年6月30日之結餘 Balance as at 30 June 2007

綜合現金流動表 截止2007年6月30日止年度 CONSOLIDATED CASH now STATEMENT FOR THE YEARENDED 30 JUNE 2007

營運活動 Operating Activities 本年度淨盈餘 Net Surplus for the year 折舊 Depreciation 壞帳沖銷 Bad debt written off 出售物業及設備之溢利 Gain on disposal of Property and Equipment 利息及投資收入 Interest and Investment Income 持至到期日財務資產溢價攤銷／（折實） Amortisation of premium I (discount) on Held-to-Maturity Financial Assets 所佔聯營公司／共同個體的經營業績 Share of results of an Associate / a Jointly Controlled Entity 轉撥自遞延設備基金 Transfer from Deferred Capital Fund 資本之變 Operating 存貨之増加 Increase in Stocks 應收賬款及預 Increase in Accounts Receivable and Prepayments 應付賬款及應計費用之增加 Increase in Accounts Payable and Accruals 遞延收益之增加（減少） Increase 1(Decrease) in Deferred Income 教職員福利撥備之減少 Decrease in Provision of Staff Benefits 營運活動淨現金流入 Net Cash from Operating Activities

綜合現金流動表（續） CONSOLIDATED CASH FLOW STATEMENT (Cont'd) FOR THE YEAR ENDED 30 JUNE 2007

2007 2006

投資活動 Investing Activities 購買物業及設備 Payment for purchase of Property and Equipment 於三個月後到期之銀行存款之增加 Increase in Bank Deposits maturing after three months 購買持至到期日財務資產 Purchase of Held-to-maturity Financial Assets 投資於可供出售財務資產之增加 Increase in Investments in Available for-Sale Financial Assets 從持之到期日財務資產所得之回贖收入 Proceeds from redemption of Held-to-Maturity Financial Assets 出售物業及設備之收入 Proceeds from disposal of Property and Equipment 利息及投資收入 Interest and investment income received 投資活動淨現金流出 Net Cash Used in Investing Activities 融資活動 Financing Activities 留本基金收入 Endowments received 用以購買無業及設備之補助及捐款收入 Subventions and donations received for purchase of Property and Equipment 融資活動淨現金（流出）流入 Net Cash from Financing Activities 現金及等同現金之淨增加 Net Increase in Cash and Cash Equivalents 年初之現金及等同現金 Cash and Cash Equivalents at the Beginning of the Year 匯兌變動之影響 Effect of Foreign Exchange Rate Changes 年終之現金及等同現金 Cash and Cash Equivalents at the End of the Year

分析年終之現金及等同現金 Analysis of Cash and Cash Equivalents at the End of the Year

銀行款項及現金 Bank and Cash 減 Less 於一年後到期之銀行存款 Bank Deposits maturing after one year 於三個月後到期之銀行存款 Bank Deposits maturing after three months

財務報表附註 2007年6月30日 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2007

主要活動 大學主要提供理學、科技、工程、管 理及商學等科目的學士學位及研究生 課程，並與政府、商業機構、工業界 及其它高等教育院校緊密合作，促進 香港經濟及社會的發展。大學的附同 公司的主要活動及其他事頂詳列於附 註15內。

大學之註冊地址及主要營種地點為香 港清水灣。 本財務報表以港元呈覽，港元亦為大 學之功能貨幣。

主要會計政策 本財務報表乃根據原始成本慣例而編 製，惟可供出售財務資產按公允值列 賬除外。本財務報表根據香港會計師 公會頒佈的香港財務報告準則編製。 主要會計政策如下。

綜合財務報表包括截至每年6月30日大 學及受大學控制之個體的財務報表。 控制權為大學有權掌管該機構的財務 及營運政策，而自其業務獲取利益。

1. PRINCIPAL ACTIVITIES The principal activities of the University are offering programmes leading to the award of first degrees and postgraduate qualifications particularly in science, technology, engineering, management and business studies; and collaborating closely with government, business, industry as well as other higher education institutions to assist the economic and social development of Hong Kong. The principal activities and other particulars of the subsidiaries are set out in note 15.

The registered address and principal place of operation is Clear Water Bay, Hong Kong.

The financial statements are presented in Hong Kong dollars, which is the same as the functional currency of the University.

2. PRINCIPAL ACCOUNTING POLICIES The financial statements have been prepared on the historical cost basis except for available-for- sale financial assets which are measured at fair value. The financial statements have been prepared in accordance with the Hong Kong Financial Reporting Standards ('HKFRSs') issued by the Hong Kong Institute of Certified Public Accountants ('HKICPA'). The principal accounting policies adopted are as follows:

2.1 Basis of Consolidation The consolidated financial statements incorporate So the financial statements of the University and entities controlled by the University made up to 30 June each year. Control is achieved where the University has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

20 於年內所收購或出售附屬公司的業績 ，分別由收購生效日期起或至出售生 效日期止計入綜合收支報表。

如有需要，會對附屬公司的財務報表 作出調整，使其會計政策與集團其他 成員公司所使用的會計政策保持一 致。 集團內部所有重大交易及結錄均在綜 合賬內抵銷。

投資於附屬公司 大學於附屬公司的投資按成本值扣除 任何可確認減債虧損後在資產負債表 中入帳。

於聯營公司權益 聯營公司指本集團可對其政策決定作 重要影響之機構，而該機構又不屬於 集團之附屬公司或於合資企業權益。

聯營公司之業績、資產及負債以權益 會計法列入綜合財務報表。聯營公司 權益按成本偕列入綜合資產負債表， 其後會就收購後集團應佔聯營公司之 淨資產，扣除所屬投資減值虧損入 賬。

集團內的機構與聯營公司交易而產生 之未實現盈利或虧損均於集團所佔權 益內抵銷，惟未實現虧損如顯示轉移 資產有所減值時，該等虧損地全數確 認。

於合資企業權益 合資企業是一個合約上的安排，由集 團與其他參與者進行一項經濟活動， 該項活動由合資各方面共同控制，凡 政策決定涉及財務及道理上之策略， 必須合資各方決議一致通過。

The results of subsidiaries acquired or disposed of during the year are included in the consolidated income and expenditure statement from the effective date of acquisition or up to the effective date of disposal, as appropriate.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by other members of the Group.

All significant transactions and balances between group entity are eliminated on consolidation.

Investmentsin Subsidiaries

Investments in subsidiaries are included in the University's balance sheet at cost less any identified impairment loss.

Interest in an Associate

An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture.

The results and assets and liabilities of an associate are incorporated in the consolidated financial statements using the equity method of accounting. Interest in an associate is carried in the consolidated balance sheet at cost as adjusted by post-acquisition changes in the Group's share of the net assets of the associate, less any impairment loss.

Where a group entity transacts with an associate of the Group, unrealized profits or losses are eliminated to the extent of the Group's interest in the relevant associate, except to the extent that unrealised losses provide evidence of an impairment of the asset transferred, in which case, the full amount of losses is recognized.

Interest in a Joint Venture

A joint venture is a contractual arrangement whereby the Group and other parties undertake an economic activity that is subject to joint control, that is when the strategic financial and operating policy decisions relating to the activities require the unanimous consent of the parties sharing control.

21 共同控制實體是透過成立一個獨立樓 樁的合資企業安排，每個合資者均佔 有該獨立機構之權益。共同控制實體 之業績、資產及負債以權益會計法列 入綜合財務報表。共同控制實體榣益 按成本值列入綜合資產負債表，其後 會就收個後集目應佔共同控制實體之 損益及權益變動扣除所同投資減值虧 損入賬。

集團與共同控制實體交易而產生之未 實現盈利或虧損均於集目所佔權益內 抵銷，惟未實現虧損如顯示轉移資產 有所減值時，該等虧損均全數確認。

物業及設備

除在建工程外，物業及設備按成本值 滅累積折舊及累積減值後入帳。

除在建工程外，計除剩餘估值後，物 業及設備按估計可使用年期以直線法 計算折舊。

在建工程按成本值減去任何已確認之 減值虧損入限及至工程完沒後才攤銷 折舊。完竣工程成本將轉撥至適當之 物業及設備分類。

物業及設備項目會在出售或預期繼續 使用該資產將不會帶來未來經濟利益 時刪除確認。資產出售或報廢所得收 入與資產帳面值的差額，從收支報表 確認為收益或虧損。

A joint venture arrangement that involves the establishment of a separate entity in which each venturer has an interest are referred to as a jointly controlled entity. The results and assets and liabilities of a jointly controlled entity are incorporated in the consolidated financial statements using the equity method of accounting. Interest in a jointly controlled entity is carried in the consolidated balance sheet at cost as adjusted by post-acquisition changes in the Group's share of the profit or loss and of changes in equity of the jointly controlled entity, less any impairment loss.

Where the Group transacts with its jointly controlled entity, unrealised profits or losses are eliminated to the extent of the Group's interest in the jointly controlled entity, except to the extent that unrealised losses provide evidence of an impairment of the asset transferred, in which case, the full amount of losses is recognized.

Property and Equipment

Property and equipment, other than construction in progress, are stated at cost less accumulated depreciation and accumulated impairment losses.

Depreciation is provided to write off the cost of property and equipment, other than construction in progress, over their estimated useful lives and after taking into account their estimated residual value, using the straight-line method.

Construction in progress is stated at cost less any identified impairment loss and is not depreciated until completion of construction. Cost of completed construction works is transferred to appropriate categories of property, plant and equipment.

An item of property and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. The gain or loss arising from disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the income and expenditure statement.

由政府補助及指定捐款支付的物業及 設備列為資本項目，而相關的金額會 計入遞延設備基金內。等同有關物業 及設備之折舊費用的金額將每年由遞 延設備基金轉至收支報表中。

金融工具 當集團成為金融工具合約條文之參與 者時，雙關交易會於集團之資產負債 表內確認為財務資產及財務負債。財 務資產和財務負債在初次確認時會以 公允值進行計量。從購置或發行財務 資產和財務負債的直接交易費用在初 步確認時計入財務資產之公允值或於 財務負債的公允值中扣除（規何者適用 而定）

應收賬款及附屬公司應付款項 應收賬款及附屬公司應付款項於初步 確認時按公允價值釐定，其後按攤銷 成本以實際利率法釐定。倘有客觀證 據顯示資產出現減值，則估計不可收 回金額之適當撥備將於收支報表中確 認。獲確認之減值撥備乃根據資產之 賬面金額與按於初步確認時計算之實 際利率折算之估計未來現金流量現值 之間的差額而釐定。

投資 投資初步按公允值加上直接相關交易 成本依據交易日基準確認及刪除確認 ，其買賣按所屬市場定立之交收期限 定下合約條款。

Expenses on property and equipment funded by government subventions and specific donations are capitalised and credited to Deferred Capital Funds. Each year, an amount equal to the depreciation charges for the respective property and equipment is transferred from Deferred Capital Funds and credited to the income and expenditure statement. Financial Instruments

Financial assets and financial liabilities are recognised on the Group's balance sheet when the Group becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition.

Accounts receivable and amounts due from subsidiaries

Accounts receivable and amounts due from subsidiaries are measured at initial recognition at fair value, and are subsequently measured at mortised cost using the effective interest rate method. Appropriate allowances for estimated irrecoverable amounts are recognised in income and expenditure statement when there is objective evidence that the asset is impaired. The allowance recognised is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows discounted at the effective interest rate computed at initial recognition.

Investments

Investments are recognised and derecognised on a trade date basis where the purchase or sale of an investment is under a contract which terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, plus directly attributable transaction costs.

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從其後報表日，集團計劃及有能力持 至到期日的債務証券（持至到期日的債 務証券），是按攤銷成本以實際利率法 釐定，減去減債虧損所代表之不可收 回值，倘有客觀證據顯示資產出現減 值虧損則於收支報表中確認。獲確認 之減值乃根據投資之賬面金額與按於 初步確認時計算之實際利率折算之估 計未來現金流量現疸之間的差額而釐 定。如其後出現已確認減疸之投資可 收回升值金額，則將予以回撥，惟回 撥後之賬面金額不能多於此減值虧損 之前已確認攤銷之成本值。

除持至到期日債務証券以外，持有之 投資將分類為可交易或可供出售，並 於日後報表日以公允值計算。持有作 交易用佳之証券，其公允這變動引致 的收益或虧損，包括在當期之收支報 表中。持作可供出售之投資其因公允 值變動引致的收益或虧損，於基金銘 餘內確認，直至出售或決定為該証券 減債，其於基金結餘累計之收益或虧 損才列入當期之收支報表中。

At subsequent reporting dates, debt securities that the Group has the expressed intention and ability to hold to maturity (held-to-maturity debt securities) are measured at amortised cost using the effective interest rate method, less any impairment loss recognised to reflect irrecoverable amounts. An impairment loss is recognised in income and expenditure statement when there is objective evidence that the asset is impaired, and is measured as the difference between the investment's carrying amount and the present value of estimated future cash flows discounted at the effective interest rate computed at initial recognition. Impairment losses are reversed in subsequent periods when an increase in the investment's recoverable amount can be related objectively to an event occurring after the recognition of the impairment loss, subject to the restriction that the carrying amount of the investment at the date the impairment is reversed shall not exceed what the amortised cost would have been had the impairment not been recognised.

Investments other than held-to-maturity debt securities are classified as either investments held for trading or as available-for-sale, and are measured at subsequent reporting dates at fair value. Where securities are held for trading purposes, gains and losses arising from changes in fair value are included in income and expenditure statement for the period. For available-for-sale investments, gains and losses arising from changes in fair value are recognised directly in fund balances, until the security is disposed of or is determined to be impaired, at which time the cumulative gains or losses previously recognised in fund balances are included in the income and expenditure statement for the period.

For available-for-sale equity investments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured and derivatives that are linked to and must be settled by delivery such unquoted equity instruments, they are measured at cost less any identified impairment losses at each balance sheet date subsequent to initial recognition. An impairment loss is recognised in income and expenditure statement when there is objective evidence that the asset is impaired. The amount of the impairment loss is measured as the difference between the carrying amount of the asset and the present value of the estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment losses will not be reversed in subsequent periods.

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該等並無活躍市場之交投報價，而其 公允值未能可靠計量的可供出售股權 投資及與其掛鉤而必須以該等沒有報 價之股權作為交收之衍生工具，於首 次確認後之各個結算日按成本值減任 何已確認減債虧損計算倘具備客觀 證明資產減債，則減疸虧損於收支報 表確認。減債虧損數額乃根據資產之 賬面金額與按類似財務資產之現行市 場回報率折算之估計未來現金流量現 值之間的差額而釐定。有關減值虧損 將不會於以後期間回撥。

為可供出售証券投資於收支報表所確 認之減值不可於其後經收支報表圓 撥。為可供出售債務証券於收支報表 所確認之減值，倘其公允償於減值虧 損確認後有所調高，可於日後回撥。

應付賬款及應計費用、遞延收益及附 屬公司應收款項

應付賬款及應計費用、遞延收益及附 屬公司應收款項初步按公允值計算， 日後按使用實際利率法計算的已攤銷 成本列賬。

現金及等同現金 現金及等同現金包括存於銀行之手頭 的現金及原到期日為三個月或以下以 現行市場利率之活期存款。

Impairment losses recognised in income and expenditure statement for equity investments classified as available-for-sale are not subsequently reversed through income and expenditure statement. Impairment losses recognised in income and expenditure statement for debt instruments classified as available-for- sale are subsequently reversed if an increase in the fair value of the instrument can be objectively related to an event occurring after the recognition of the impairment loss.

Accounts payable and accruals, deferred income and amounts due to subsidiaries

Accounts payable and accruals, deferred income and amounts due to subsidiaries are initially measured at fair value, and are subsequently measured at mortised cost, using the effective interest rate method.

2.6 (d) Cash and cash equivalents Cash and cash equivalents comprise cash on hand and demand deposits with an original maturity of three months or less at prevailing market rate.

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集日因過往事件招致現行責任，可能 需要償還債務。在此情況下，集團需 要撥補確認負債。用償款額由管理層 於結賬日對責任所需作出最適當估 計。倘同重大影響，以貼現現值計 算。

存貨 自籌資金業務持作轉售之存貨按成本 或可變現淨值兩者較低者入帳。成本 以加權平均法計算。

減值 在每年結算日，集團會審查資產的帳 面值，確定資產有沒有出現減債虧損 跡象。若估計資產的可收回金額較帳 面值為低，則須將帳面值調低至可收 回金額。而所產生的活值會即時確認 為開支。 倘若所作出的活值虧損可於日後回撥 ，資產的帳面疸會調高至重估的可收 回金額，惟調高後之可收回金額不可 多於資產於以前年度未有減債虧損的 帳面值。所回撥的減債虧損會即時確 認為收入。

收入 政府補助及指定捐款必須與開支配對 及按有關開支的會計期予以確認為收 入。剩餘的用筆經常撥款根據現行教 資會的規定亦會列為收入及轉撥至大 學一般及發展儲備基金。

2.6 (e) Provisions Provisions are recognised when the Group has a present obligation as a result of a past event, and it is probable that the Group will be required to settle that obligation. Provisions are measured at the management's best estimate of the expenditure required to settle the obligation at the balance sheet date, and are discounted to present value where the effect is material.

Stocks

Stocks held for resale in respect of self-financing operations are valued at the lower of cost and net realisable value. Cost is calculated using the weighted average method.

Impairment

At each balance sheet date, the Group reviews the carrying amounts of its assets to determine whether there is any indication that those assets have suffered an impairment loss. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, such that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately.

Income

Government subventions and designated donations are recognised as income over the periods necessary to match them with the related expenditure. Any Recurrent Block Grant in excess of related expenditure is recognised as income and transferred to the General and Development Reserve Fund in accordance with the prevailing University Grant Committee ' s guidelines.

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用作購置會折舊的物業及設備的補助 及捐款會入帳為遞延設備基金並按會 計政策附註2.5及11的規定在有關資產 的可使用年限內攤銷。

一般捐款在收取或應收時確認為收入。

學費、輔助服務及租金收入概於完成 服務後確認入帳。

財務資產的利息收入以時間基準按結 存金額及適用利率計算。適用利率即 按財務資產預計於可使用年期內收取 之估計未來現金款項折算至該資產脹 面淨值之利率。

留本基金於收受的年度內列入限定基 金帳項。留本基金所產生的收入於收 支報表中入帳。當保存本金之要求之 期限橋止或捐贈人放棄該要求，留本 基金會由限定基金轉入收支報表。

來自科研合約之收入按完成百份比並 開立賬單予以確認。

營運租約 集團為出租者 來自營運租約的租金收入在有關租約 年期內按直線基準確認。初期商討及 安排營浬租約所產生的直接成本會計 入出租資產的帳面金額，並於有關租 約年期內按直線基準確認。

集團為承租者 根據營運租約應付之租金以直線基準 按有關租約之年期於收支報表內列 賬。作為訂立期營運租約誘因之已收 及應收利益，亦按直線基準於有關租 約年期分攤。

Subventions and donations for depreciable property and equipment are recognised as Deferred Capital Funds and are mortised over the estimated useful lives of the related assets in accordance with the policies as stated in notes 2.5 and 11.

General donations are recognised as income when the amounts have been received or are receivable from the donors.

Tuition fees, auxiliary services and rental income are recognised when services are provided.

Interest income from a financial asset is accrued on a time basis, by reference to the principal outstanding and at the interest rate applicable, which is the rate that exactly discount the estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount.

Endowments are credited to restricted funds in the year in which they are received. Income generated from endowments are recognised in the income and expenditure statement. Endowments are transferred from restricted funds and credited to the income and expenditure statement when the condition for maintenance of the principal amounts has expired or been waived by donors.

Income from contract research is recognized on a percentage of completion basis when the fee notes are issued.

2.10 Operating Leases 2.10 (a) The Group as lessor Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight-line basis over the lease term.

2.10 (b) The Group as lessee Rentals payable under operating leases are charged to income and expenditure statement on a straight-line basis over the term of the relevant lease. Benefits received and receivable as an incentive to enter into an operating lease are also spread on a straight-line basis over the lease term.

27

退休福利開支 為界定供款退休計劃所支付之款頂， 從僱員作出供款所頭之服務後列為支 出。

每一集團成員之個別財務報表乃以其 主要的經自所在地之貨幣（其功能貨幣） 呈覽。為製定綜合財務報表，每一實 體之業績及財務狀況則需以港幣編算 ，港幣為大學之功能貨幣及作為呈覽 綜合財務報表所用貨幣。

於編制個別實體之財務報表時，以有 關實體功能貨幣以外之貨幣（外幣）進行 交易，乃按交易當日邇用之匯率入 脹。於各結算日，以外幣計疸之貨幣 項目按結算日之匯率重新換算。按公 允償列隨之非貨幣項目按公允償定價 當日發用之匯率重新換算。以外幣並 按歷史成本計算之非貨幣頂目則不會 重新換算。

因結算貨幣項目及重新換算貨幣項目 而產生之匯兄差額撥入其產生的期間 之收支報表。因重新換算按公允償列 限之非貨幣項目而產生之匯兄差額撥 入當期之收支報表，惟因重新換算非 貨幣頂目之收益或虧損而產生之匯兌 差額，而該收益或虧損需直接於基金 結餘內確認者除外。該等非貨幣項目 之有關收益或虧損之任何外匯成份會 一併直接於基金結餘內確認。

Retirement Benefits Costs

Payments to defined contribution retirement benefit plans are charged as an expense when employees have rendered service entitling them to the contribution.

Foreign Currencies

The individual financial statements of each member of the Group are presented in the currency of the primary economic environment in which the entity operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial position of each entity are expressed in Hong Kong Dollars, which is the functional currency of the University and the presentation currency for the consolidated financial statements.

In preparing the financial statements of the individual entity, transactions in currencies other than the entity's functional currency (foreign currencies) are recorded at the rates of exchange prevailing on the dates of the transactions. At each balance sheet date, monetary items denominated in foreign currencies are retranslated at the rates prevailing on the balance sheet date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary items, are included in the income and expenditure statement for the period in which they arise. Exchange differences arising on the retranslation of non-monetary items carried at fair value are included in the income and expenditure statement for the period except for differences arising on the retranslation of non-monetary items in respect of which gains and losses are recognised directly in fund balances. For such non-monetary items, any exchange component of that gain or loss is also recognised directly in fund balances.

28 為呈列綜合財務報表，本集團境外業 務的資產及負債均以結算日適用匯率 換算為本集團的呈列貨幣（即港元），而 其收入及開支則以本年度平均匯率予 以換算。產生的匯兌差異確認為基金 結餘內一個獨立部份（換算儲備）該匯 兌差異於該境外業務被出售期間之收 支報表內確認。

For the purposes of presenting the consolidated financial statements, the assets and liabilities of the Group's operations outside Hong Kong are translated into the presentation currency of the Group (i.e. Hong Kong dollars) at the rate of exchange prevailing at the balance sheet date, and their income and expenses are translated at the average exchange rates for the year. Exchange differences arising, if any, are recognized as a separate component of fund balances (the translation reserve). Such exchange differences are recognized in the income and expenditure statement in the period in which the foreign operation is disposed of.

29 應用新訂及絰修訂香港財務報準則 香港財務報告準則 集團於本年度首次應用多項由香港書計師公會 會計師公會 頒佈之新準則、修訂及詮釋＊”新香港財務報告準則’該等準則均 由集團2006年7月1日開始之財政年度起生效。採田新香港財務報告準則對集團於本會計年度或過往會計年度之業縝及財務狀 況之編製及呈報方式並無任何重大影響。因此，毋須作出任何前期調整。 本集團並無提早應用以下香港會計師公會已頒佈但尚未生效之新訂及經修訂準則、修訂及詮釋。本集團預期採納該等新及經修 訂準則、修訂及詮釋將不會對本集團之財務狀況產生重大影響。 香港會計準則第1號（修訂） 香港會計準則第23號（修訂） 香港財務報告準則第7號 香港財務報告準則第8號 香港（國際財務報告準則詮釋委員會）－詮釋10 香港（國際財務報告準則詮釋委員會）－詮釋11 香港（國際財務報告準則詮釋委員會）－詮釋12 香港（國際財務報告準則詮釋委員會）－詮釋13 香港（國際財務報告準則詮釋委員會）－詮釋14 資本披露 借貸成本 金融工具：被露 業務分部 中期務報告及減值 香港財務報告準則第2號－集團及庫存股份交易 服務專營權安排 客戶忠誠度計劃 香港會計準則第19號－定額福利資產之限制、最低資金要求及兩者之互動 關係 於2007年1月1日或以後開展之年度期間生效 於2009年1月1日或以後開展之年度期間生效。 於2006年11月1日或以後開展之年度期間生效 於2007年3月1日或以後開展之年度地間生效。 於2008年1月1日或以後開展之年度期間生效 於2008年7月1日或以後開展之年度期間生效

2-13

APPLICATION OF NEW AND REVISED HONG KONG FINANCIAL REPORTING STANDARD ('HKFRSs”)

In the current year, the Group has applied, for the first time, a number of new standards, amendments and interpretations ('new HKFRSs') issued by the Hong Kong Institute of Certified Public Accountants ('HKICPA') that are effective for the Group's financial year beginning 1 July 2006. The adoption of the new HKFRSs had no material effect on how the Group's results and financial position for the current or prior accounting years have been prepared and presented. Accordingly, no prior period adjustment has been required.

The Group has not early applied the following new and revised standards, amendments and interpretations that have been issued by the Hong Kong Institute of Certified Public Accountants, but are not yet effective. The Group anticipates that the application of these new and revised standards, amendments and interpretations will have no material impact on the financial position of the Group:

HKAS 1 (Amendment) Capital disclosures HKAS 23 (Revised) Borrowing Financial instruments: Disclosures Operating segments 2 HK(IFRIC) – INT 10 Interim Financial Reporting and impairment HK(IFRIC) -INT 11 HKFRS 2 -Group and Treasury Share Transaction HK(IFRIC) -INT 12 Service Concession Arrangements HK(IFRIC) -INT 13 Customer Loyalty Programmes HK(IFRIC) -INT 14 HKAS 19 -The Limit on a Defined Benefit Assets, Minimum Funding Requirements and their Interaction 5 Effective for accounting periods beginning on or after January 1, 2007. Effective for accounting periods beginning on or after January 1, 2009. Effective for accounting periods beginning on or after November 1, 2006. Effective for accounting periods beginning on or after March 1, 2007. Effective for accounting periods beginning on or after January 1, 2008. Effective for accounting periods beginning on or after July 1, 2008.

30 政府補助 教資會補助 整筆經常撥款／增補撥款 指定撥款 研究 房屋福利 其他 退還差的及地租 建設撥款及校舍妀建、加建及改善工程之整筆撥款 配對撥款 政府有關機構撥款 綜合 GOVERNMENT SUBVENTIONS Consolidated Subventions from University Grants Committee (UGC) Recurrent Block Grant 1 Supplementary Grants Earmarked Grants Research Housing Benefits Others Rates and Government Rent Refunds Capital Grants and Alterations, Additions & Improvements Block Allocation Matching Grants Grants from Government Agencies

31 政府補助(續) 教資會補助 整筆經常撥款／增補撥款 指定撥款 大學 研究 房屋福利 其他 退還差的及地租 建設撥款及校舍改建、加建及改善工程之整筆撥款 配對嚴款 政府有關機構撥款 GOVERNMENT SUBVENTIONS (Cont'd) University Subventions from University Grants Committee (UGC) Recurrent Block Grant / Supplementary Grants Earmarked Grants Research Housing Benefits Others Rates and Government Rent Refunds Capital Grants and Alterations, Additions & Improvements Block Allocation Matching Grants Grants from Government Agencies

32 學費、課程及其他收費 教資會資助課程 學費 入學申請及其他收費 非教資會資助課程 教資會資助課程 學費 入學申請及其他收費 非教資會資助課程

TUITION, PROGRAMMES AND OTHER FEES

Consolidated UGC-Funded Programmes Tuition Fees Application and Other Fees Non UGC-Funded Programmes UGC-Funded Programmes Tuition Fees University Application and Other Fees Non UGC-Funded Programmes

33 利息及投資收入 綜合 利息收入 可供出售財務資產之已實現盈利及投資收入 來自聯營公司之股息收入 利息收入 可供出售財務資產之已實現盈利及投資收入 來自聯營公司之股息收入

34

INTEREST ANDINVESTMENT INCOME Consolidated Interest Income Realized gains and investment income on Available-for-Sale Financial Assets Dividend received from an Associate University Interest Income Realized gains and investment income on Available-for-Sale Financial Assets Dividend received from an Associate

34 外界捐款 綜合及大學 建設項目 獎學金及助學金 學術及研究活動（附註） DONATIONS AND BENEFACTIONS Consolidated and University Capital Projects Scholarships and Bursaries Learning and Research Activities (Note)

Note :

The amount included a donation of $217,000 (2006: $943.695) from the Hong Kong Jockey Club Charities Trust. Apart from this, the Hong Kong Jockey Club Charities Trust donated $36,193,859 (2006: $14,637,395) for construction of the University's Enterprise Center, which amount was recognised in defied income; and a total sum of $26,428,723 (2006: $20,026,032) through the University to the Biotechnology Research Corporation Limited (BRC) for conduction of biotechnology research activities, which amount was not recognised as income of the University.

7 輔助服務 綜合 學生宿舍 膳食服務 紀念品部 租金收入 教職員繳納之租金 其他 大學 學生宿舍 膳食服務 紀念品部 租金收入 教職員繳納之租金 其他

AUXILIARY SERVICES Residence Halls Catering Services Souvenir Shop Rental Income Rental Contribution from Staff Others Residence Halls Catering Services Souvenir Shop Rental Income Rental Contribution from Staff Others

2007 2006 $'000 $'000 Consolidated University 50,937 50,117

36 其他收入 研究合約 其他 研究合約 其他 綜合 大學

OTHER INCOME

Consolidated Contract Research Others University 9,064 15,500 Contract Research Others

37 開支

營運支出 折舊 總計 綜合 學術及研究 教學及研究 圖書館 中央電圖設備 其他教學服務 小計 管理及一般事務 校舍及有國費用 學生及一般教育服務 其他活動 2007年度總開支 2006年度總開支 薪酬及福利包括集團於有關年度為退休金計劃所支付之供款共116，300，000元（200：118，800，000元）O

EXPENDITURE

Learning and Research Instruction and Research Library Central Computing Facilities Other Academic Services Subtotal Institutional Support Management and General Premises and Related Expenses Student and General Education Services Other Activities Subtotal

2007 Total Expenditure for Year 2007 2006 Total Expenditure for Year 2006

Salaries and Operating 2007 2006 Benefits Expenses Depreciation Total Total $'000 $'000 $'000 $'000 $'000

Consolidated

Included in Salaries and Benefits was a total sum of $1 16.3 million (2006: $1 18.8 million) representing the Group's contributions towards retirement benefits schemes for the respective accounting period.

9. 開支（續） 薪酬及福利 營運支出 學術及研究 Learning and Research 教學及研究 圖書館 中央電腦設備 其他教學服務 小計 校務支緩 管理及一般事務 校舍及有關費用 學生及一般教育服務 其他活動 小計 Subtotal 2007年度總開支 Total Expenditures for Year 2007 2006年度總開支 EXPENDITURE (Cont'd) Salaries and Benefits $'000 Operating Expenses Depreciation 2007 Total $'000 2006 Total S'OOO Learning and Research University Instruction and Research Library Central Computing Facilities Other Academic Services Subtotal Institutional Support Management and General Premises and Related Expenses Student and General Education Services Other Activities Subtotal 2007 Total Expenditure for Year 2007 2006 Total Expenditure for Year 2006

9-1 高收入員工 高收入員工歸納於以下組別內 綜合及大學 營運支出分析 學術及研究 一般辦公室／教學及科研費用／設備 綜合 圖書館書籍及期刊 研究生助學金

管理及一般事務 核數師酬金 財務費用 一段保險 一般辦公室費用設備 法律費用

REMUNERATION OF HIGHERPAID STAFF The remunerations of higher paid staff were within the following bands

Number of Employees 2007 2006

Consolidated and University

35 31 14 12 15 14 9 8 6 2 4 1 1 0 0 1 1 1 1 0 0 1 1 0

9.2 ANALYSIS OF OPERATING EXPENSES

2007 2006 Consolidated Learning and Research General Office Teaching and Research Expenses Equipment Library Books and Periodicals Postgraduate Studentships Management and General Auditors' Remuneration MBSM Financial Charges General Insurance General Office Expenses Equipment Legal Fee

營運支出分析(續)

校舍及有關費用 一般辦公室費用／設備 物業保險 差餉的及地租 維修及保養／小型工程 公共事業、清潔及保安支出 學生及一段教務 一般辦公室費用／設備 學生醫療及牙科保健 宿舍 獎學金及助學金 學生活動 其他活動 ANALYSIS OF OPERATING EXPENSES (Cont'd) 2007 2006 $'000 Consolidated Premises and Related Expenses General Office Expenses / Equipment Property Insurance Rates and Government Rent Repair and Maintenance / Minor Works Utilities, Cleaning and Security Services Expenses Student and General Education Services General Office Expenses / Equipment Medical and Dental Care for Students Residence Halls Scholarships and Bursary Student Activities Other Activities 41

9-2 營運支出分析(續) 大學 學術及研究 一般辦公室／教學及科研費用／設備 圖書館書籍及期刊 研究生助學金 管理及一般事 務 核數師酬金 財務費用 一般保瞼 一段辦公室費用／設備 法律費用 ANALYSIS OF OPERATING EXPENSES (Cont'd) University Learning and Research General Office Teaching and Research Expenses Equipment Library Books and Periodicals 233,276 Postgraduate Studentships Management and General Auditors' Remuneration Financial Charges General Insurance General Office Expenses / Equipment Legal Fee

42

9.2 營運支出分析（續） 校舍及有關費用 一般辦公室費用／設備 物業保險 差餉及地租 維修及保養／小型工程 公共事業、清潔及保安支出 學生及一般發育服務 一般辦公室費用／設備 學生醫療及牙科保健 宿舍 獎學金及助學金 學生活動 其他活動 大學 ANALYSIS OF OPERATING EXPENSES (Cont'd) University Premises and Related Expenses General Office Expenses / Equipment Property Insurance Rates and Government Rent Repair and Maintenance / Minor Works Utilities, Cleaning and Security Services Expenses Student and General Education Services General Office Expenses / Equipment Medical and Dental Care for Students Residence Halls Scholarships and Bursary Student Activities Other Activities

10 轉撥至限定/其他基金(續） 限定基金 其他基金 限定基金 其他基金 收入 政府補助 學費、課程及其他收費 利息及投資收入 外界捐款 輔助服務 其他收入 口支 學術及研究 教學及研究 圖書館 中央電腦設備 其他教學服務 校務支援 管理及一般事務 校舍及有關費用 學生及一般教育服務 其他活動 本年度可轉撥之盈餘

TRANSFERS TO RESTRICTED /OTHER FUNDS

Income and expenditure for the year are categorised between specific use and general use. Any surplus from the former category is

transferred to Restricted Funds and the latter to Other Funds.

Restricted Funds Government Subventions Tuition, Programmes and Other Fees Interest and Investment Income Donations and Benefactions Auxiliary Services Other Income Expenditure Learning and Research Instruction and Research Library Central Computing Facilities Other Academic Services Institutional Support Management and General Premises and Related Expenses Student and General Education Services Other Activities Surplus from operation for the year

Share of Results of an Associate jointly Controlled Entity Surplus for the year available for transfers Other Restricted Other Funds Funds Funds Consolidated

45

TRANSFERS TO RESTRICTED / OTHER FUNDS (Cont'd)

Income Government Subventions Tuition, Programmes and Other Fees Interest and Investment Income Donations and Benefactions Auxiliary Services Other Income Expenditure Learning and Research Instruction and Research Library Central Computing Facilities Other Academic Services Institutional Support Management and General Premises and Related Expenses Student and General Education Services Other Activities Surplus for the year available for transfers Restricted Other Restricted Other Funds Funds Funds Funds University 45

11. 物業及設備 樓宇 在建工程 傢具及設備 總計

2005年7月1日之結餘 匯兌差額 出售/撇銷 2006年6月30日之結餘 添置 轉撥 匯兌差額 出售/撇銷 2007年6月30日之結餘

折舊 DEPRECIATION 2005年7月1日之結餘 本年度計算之折舊 匯兌差額 出售／撇銷 2006年6月30日結餘 本年度計算之折舊 出售l撇銷 2007年6月30日之結餘 賬面淨值 NET BOOK VALUES 2007年6月30日之結餘

2006年6月30日之結餘 以上之物業及設備項目直線法依照下列年率計算折舊： 樓宇 傢具及設用 每年

PROPERTY AND EQUIPMENT Buildings Construction Fixtures and Buildings in progress equipment Total Consolidated COST 1,661,997 5,945,178 4,268,115 15,066 Balance as at 1 July 2005 3 1,337 76,114 50,736 128,187 Additions 47 47 Exchange translation difference (74,030) (74,030) Disposals/Written Off 1,638,750 5,999,382 2006 4,269,452 91,180 Balance as at 30 June 2006 BE7 2,920 38,327 64,038 105,285 Additions 125,567 (125,567) 0 0 Transfers 112 112 Exchange translation difference (84,478) (84,478) Disposals/ Written Off 1,618,422 6,020,301 2007-8 4,397,939 3,940 Balance as at 30 June 2007

DEPRECIATION

1,032,490 0 1,570,121 2,602,611 Balance as at 1July 2005 87,173 0 68,403 155,576 Provided for the year Exchange translation difference (73,836) (73,836) Disposals Written Off 1,564,690 2,684,353 2006 1,119,663 0 Balance as at 30 June 2006 88,134 0 54,764 142,898 Provided for the year Exchange translation difference (84,428) (84,428) Disposals/ Written Off 1,535,040 2,742,837 2007 1,207,797 0 Balance as at 30 June 2007 NETBOOK VALUES 83,382 3,277,464 3,190,142 3,940 Balance as at 30 June 2007 74,060 3,3 15,029 2006 3,149,789 91,180 Balance as at 30 June 2006

The above items of property and equipment are depreciated on straight-line basis at the following rates per annum: Buildings 2% per annum

Buildings Fixtures and equipment 20% -25% per annum

46

11. PROPERTY AND EQUIPMENT (Cont'd)

Construction Fixtures and Buildings in progress equipment Total

5'000 S'OOO S'OOO S'OOO University COST 2005年7月1日 4,268,115 15,066 Balance as at 1 July 2005 1,653,374 5,936,555 1,337 76,114 Additions 49,715 127,166

Disposals /Written Off (74,030) (74,030) 2006年6月30日4,269,452 91,180 Balance as at 30 June 2006 1,629,059 5,989,691 2,920 38,327 Additions 58,920 100,167 125,567 (125,567) Transfers Disposals / Written Off (84,478) (84,478) 2007年6月30日4,397,939 3,940 Balance as at 30 June 2007 1,603,501 6,005,380 DEPRECIATION 2005年7月1日1,032,490 0 Balance as at 1 July 2005 1,566,673 2,599,163 87,173 0 Provided for the year Disposals / Written Off 66,569 (73,836) 153,742 (73,836) 2006年6月30日1,119,663 0 Balance as at 30 June 2006 1,559,406 2,679,069 Provided for the year 52,509 140,643 Disposals/ Written Off (84,428) (84,428) 2007年6月30日 1,207,797 0 Balance as at 30 June 2007 1,527,487 2,735,284 NET BOOK VALUES 2007年6月30日3,190,142 3,940 Balance as at 30 June 2007 76,014 3,270,096 2006年6月30日3,149,789 91,180 Balance as at 30 June 2006 4 69,653 3,310,622

The University campus located in Sai Kung of approximately 60 hectares was granted by the Government at a nominal rent for 58 years through30 June 2047. The above items of property and equipment are depreciated on straight-line basis at the following rates per annum: Buildings 2% per annum Fixtures and equipment 20% -25% per annum 47

12. 財務資產 綜合 持至到期日財務資產 可供出售財務資產 非上市財務資產之公允值（附註1） 非上市財務資產之成本（附註2） 上市財務資產之市值 附註 非上市可供出售財務實產之公允值乃參考活躍市場或基金經理報價釐定。 由私人公司發行之非上市股本證券乃結算日安成本扣除減值計量，原因為合理公允值值估計範圍太大，集團管理層認為其公允值不能靠計量 附註 大學表面上擁有香港物流計供應鏈管理應用技術研發中心有限公司值部分權益，該公司為一間香港註冊值無股本計保證有限償還公司，但根據公司組織大綱及章程，大學並沒有控制權或重大影響力於LSCM的營運計財務政策上，更沒有權利分佔其盈利及資產，因此LSCM界定為非上市財務資產 大學表面上擁有納米及先進材料研發院有限公司之100%權益，該公司為一間於香港註冊之無股本及保證有限償還公司，但根據公司組織大綱及章程，大學並沒有控制權於NAMI的營運及財務政策上，更沒有權利分佔其盈利及資產，因此NAMI界定為非上市財務資產．

FINANCIAL ASSETS Consolidated Held-to-Maturity Financial Assets Available-for-Sale Financial Assets Unlisted, at fair value (Note 1) Unlisted, at cost (Note 2) Listed, at market value Notes : The unlisted available-for-sale financial assets at fair value were determined by reference to bid prices quoted in active markets or by fund managers.

The unlisted available-for-sale fiMncia1 assets at cost represents investment in an unlisted equity security issued by a private entity. It is measured at cost less impairment at each balance sheet date. The range of reasonable fair value of the asset is quite wide. Management of the Group is of the opinion that its fair value cannot be measured reliably.

University Held-to-Maturity Financial Assets Available-for-Sale Financial Assets (Note) Unlisted, at fair value Listed, at market value

969,257 855,901

Note :

The University holds, prima facie, a partial interest in Hong Kong R&D Centre for Logistics and Supply Chain Management Enabling Technologies Limited ('LSCM'?, a company incorporated in Hong Kong and limited by guarantee and not having a share capital. However, pant to the Memorandum and Articles of Association of LSCM the University has no control or significant influence over the operating and financial policies of LSCM and has no entitlement to share in its profits and assets. There, LSCM is classified as an unlisted available-for-sale financial asset.

The University holds, prima facie, 100% interest in Nano and Advanced Materials Institute Limited ('NAMI'I), a company incorporated in Hong Kong and limited by guarantee and not having a share capital. However, pursuant to the Memorandum and Articles of Association of NAM, the University has no control over the operating and financial policies of NAM and has no entitlement to share in its prof6 and assets. Therefore, NAMI is classified as an unlisted available-for-sale financial asset. 48

13. 從聯營公司權益 非上市投資成本值 所佔收購後溢和，儲備及扣除已收股息 所佔淨資產 非上市投資成本值

聯營公司 業務架構模式 註冊地點營運地點 擁有權益 持有股本類別 主要活動 深港產學研基地 有限責任公司 中華人民共和國 注入資本 促進深圳經濟特區高新科技的發展，並培育精英專才 下文載列為聯營公司之財務資料概要 總資產 總負債 資產淨值 集團應佔聯營公司之資產淨值 本年度溢利 集團年內應佔聯營公司業績

INTEREST IN AN ASSOCIATE 2007 2006 3'000 3'000 Consolidated 9,430 9,430 Unlisted shares, at cost Share of post-acquisition profits, reserves and net of dividends received Share of net assets University Unlisted shares, at cost Proportion of Nominal Value of Form of Place of Incorporation 1 Issued Capital Associate Form of Business Structure Place of Incorporation Principal Place of Operation Proportion of nominal value of issued capital directly held by the University Class of Shares Held 39% Principal Activity

PKU-HKUST Shenzhen-Hong Kong Institution Limited Liability Company People's Republic of China Capital contribution To foster the development of high technologies in Shenzhen and to cultivate high quality human resources

2007 2006

The summarised financial information in respect of an Associate is set out below:

Total assets

Total liabilities

Net assets

Group's share of net assets of the associate Turnover Profit for the year Group's share of results of the associate for the year 49

14.

於合資企業權益 非上市投資成本值 所佔收購後溢利 所佔淨資產 共同控制實體 業務架構模式 註冊地點／營運地點 只有股本類別 擁有股權 於董事局之投票權 業務性質 淅江港科大先進製造研究所有限公司 中外合資 中華人民共和國 注入資本 促進製造業的研究工作

集團持有“浙江港科大”之５１％股權，並於5席之董事局內佔有3席，擁有60％之投票權，但是，根據“浙江港科大”之公司章程及股東協議 ，所有重大之事項包括財務及營運之決策必須得到集權及其他主要股東一致決議通過，因此，集團把“浙江港科大”歸類為共同控制之實體

INTEREST IN A JOINT VENTURE

Consolidated Jointly controlled entity Unlisted shares, at cost Share of post-acquisition profits Share of net assets

Name of Entity Form of Business Structure Country of Incorporation and Operation Class of Shares Held of issued Capital Held by the Group Proportion of Nominal Value Percentage of Voting Power of the Board Nature of Business

Zhejiang Advanced Manufacturing Institute of HKUST Co. Ltd. ('ZAMI') Sino-foreign joint venture People's Republic of China Capital contribution Promotion of manufacturing research

The Group holds 51% of the share capital of ZAMI and has appointed3 out of 5 directors in the Board representing 60%of voting power of the Board However, under the memorandum and articles and shareholders' agreement of ZAMI, all significant events including financial and operating policies must be mutually agreed by the Group and the other significant shareholder. Therefore, ZAMI is classified as a jointly controlled entity of the Group.

50

15 投資於附屬公司 非上市投資成本值 附屬公司 註冊地點／國家 擁有股權 主要活動 香港科技大學持續進修學院有限公司 香港科大地產有限公司 香港科大研究開發有限公司 廣州香港科大研究開發有限公司 港科大研究開發（深圳）有限公司 廣州市香港科大霍英東研究院 香港 中華人民共和國 開辦教育科目及課程 不活動 把大學的研究項目所引發的創新科技轉化為商業投資 提供研究及開發服務 提供研究及開發服務 中華人民共和國 提供研究及開發服務

INVESTMENTS IN SUBSIDIARIES

Unlisted shares, at cost Subsidiaries HKUST College of Lifelong Learning Limited HKUST Properties Limited Hong Kong University of Science and Technology R and D Corporation Limited HKUST R and D Corporation (Guangzhou) Limited HKUST R and D Corporation (Shenzhen) Limited Guangzhou HKUST Fok Ying Tung Research Institute Place / Country of Incorporation Hong Kong Hong Kong Hong Kong People's Republic of China People's Republic of China People's Republic of China Proportion of Nominal Value of Issued I Registered Capital Held by the University

Direct Indirect

University

Principal Activity

Conducting educational courses and programs Dormant To engage in developing scientific and technical innovations produced by university research projects into commercial ventures Provision of research and development services Provision of research and development services Provision of research and development services

16.

存貨 綜合及大學 紀念品部之存貨 於年內確認作支出之存貨為港幣383，611元（2006年：港幣329，634元）。 應收賬款及預付款項 綜合 預付款項及按金 教資會應付款項 應收賬款 大學 預付款頂及按金 教資會應付款項 應收賬款 應收賬款於發出通知後須立即償還。

STOCKS

Consolidated and University Stocks held by Souvenir Shop The amount of stocks recognised as an expense during the year was HK$383,611 (2006: HK$329,634).

17. ACCOUNTS RECEIVABLE AND PREPAYMENTS 2007 $'OOO 2006 $'OOO

Consolidated

Prepayments and Deposits Amount due from UGC Accounts Receivable University Prepayments and Deposits Amount due from UGC Accounts Receivable Accounts receivable are repayable on demand.

52

銀行款項及現金 銀行存款 於三個月內到期 於三個月後到期 於一年後到期 其他銀行及現金結餘 分析如下： 到期日超過一年之定期存款 銀行款項及現金 銀行存款 於三個月內到期 於三個月後到期 從一年後到期 其他銀行及現金結餘 到期日超過一年之定期存款 銀行款項及現金 其他銀行及現金結餘包括已簽發但未兌現之支票2007年6月30日時並無實質超支（2006：沒有）。

BANK AND CASH 2007 S'OOO 2006 S'OOO Consolidated Bank Deposits Maturing within three months Maturing after three months Maturing after one year Other Bank and Cash Balances

Analysis as follows:

Bank Deposits with maturity after one year shown under noncurrent assets Bank and Cash University Bank Deposits Maturing within three months Maturing after three months Maturing after one year Other Bank and Cash Balances Analysis as follows: Bank Deposits with maturity after one year shown under non-current assets Bank and Cash

2,520,5 13 2,065,773

Other bank and cash balances included cheques issued but not yet presented for payment. There was no physical overdraft at 30 June 2007 (2006: nil).

53

19. 應付帳款及應計費用 綜合 其他應付賬款及應計費用 教資會應收款項 其他應付賬款及應計費用 大學 教資會應收款項 ACCOUNTS PAYABLE AND ACCRUALS Be Consolidated Other Accounts Payable and Accruals

Amount due to UGC Other Accounts Payable and Accruals Amount due to UGC University 175,857 158,008

54

20. 教職員福利撥備 退職金 代假期金及其他

PROVISION OF STAFF BENEFITS Gratuities Leave Pay and Others Payable: Within 1 year After 1 year Gratuities Leave Pay and Others Payable: Within 1 year After 1 year

2007 2006 $'OOO $'OOO

Consolidated 30,401 26,866

University

55

21. 遞延收益 教資會補助 政府有關機構撥款 捐款 總計 綜合及大學 2005年7月１日之結餘 補助收益 計入收支報表 轉入遞延設備基金 2006年6月30日之結餘 補助收益 計入收支報表 轉入遞延設備基金 2007年6月30日之結餘

DEFERRED INCOME Balance as at 1July 2005 Subventions received Credited to income and expenditure statement Transferred to Deferred Capital Funds Balance as at 30 June 2006 Subventions received Credited to income and expenditure statement Transferred to Deferred Capital Funds Balance as at 30 June 2007 UGC Subventions S'OOO Grants from Government Agencies 5'000 Donations $'OOO Total $'OOO Consolidated and University 56

22. 遞延設備基金 7月1日之結餘 樓宇 傢具及設備 於年內已收及應收的補助及捐款用作購買物業及設備 樓宇 傢具及設備 為以補助及捐款購置的物業及設備所需折舊之款頂而轉限至收支報表（附註） 樓宇 傢具及設備 6月30日之結餘 樓宇 傢具及設備

DEFERRED CAPITAL FUNDS 2007 2006

S'OOO S'OOO Consolidated and University Balance as at 1July Buildings Fixtures and equipment Subventions and donations received and receivable during the year for Property and Equipment Buildings Fixtures and equipment Amount transferred to income and expenditure statement representing the depreciation charge on Property and Equipment funded by subventions and donations (Notes) Buildings Fixtures and equipment Balance as at 30 June Buildings Fixtures and equipment Notes :

(I) Deferred Capital Fun& represent subventions and donations used specifically for the acquisition of property and equipment. The amounts are recognised as income to match the depreciation charge on the property and equipment acquired

(2)

Out of $126.371 million (2006: $139.537 million) transferred to income and expenditure statement, $81.938 million (2006: $94.241 million) has been included in Government Subventions and $44.433 million (2006: $45.296 million) in Donations and Benefactions.

57

23. 限定基金(續） 留本基金 投資中估儲備 其他限定基金 總計 大學 2005年7月1日之結餘 本年度盈餘 留本基金收入 於可供出售財務資產未實現之盈利 可供出售財務資產之末實現盈利於出售時被確認及轉撥 至收支報表 基金轉撥 226年6月30日之結餘 本年度盈餘 留本基金收入 於可供出售財務資產未實現之盈利 可供出售財務資產之未實現盈利於出售時被確認及轉撥 至收支報表 基金轉撥

2007年6月30日之結餘 RESTRICTED FUNDS Endowment Funds S'OOO Investment Revaluation Reserve $'OOO Other Restricted Funds $'OOO Total S'OOO Consolidated Balance as at 1 July 2005 50,108 704,192 Surplus for the year Endowment Funds received Unrealised gain on Available-for-Sale Financial Assets Recognition of unrealised gain on disposal of Available-for-Sale Financial Assets transferred to income and expenditure statement Inter-fund transfer Balance as at 30 June 2006 Surplus for the year Endowment Funds received Unrealised gain on Available-for-Sale Financial Assets

Recognition of unrealised gain on disposal of Available-for-Sale Financial Assets transferred to income and expendim statement Inter-fund transfer Balance as at 30 June 2007

58

RESTRICTED FUNDS (Cont'd) Balance as at 1July 2005 Surplus for the year Endowment Funds received Unrealised gain on Available-for-Sale Financial Assets Recognition of unrealised gain on disposal of Available-for-Sale Financial Assets transferred to income and expenditure statement Inter-fund transfer Balance as at 30 June 2006 Surplus for the year Endowment Funds received Unrealised gain on Available-for-Sale Financial Assets

Recognition of unrealised gain on disposal of Available-for-Sale Financial Assets transferred to income and expenditure statement Inter-fund transfer

Balance as at 30 June 2007

Endowment Funds Investment Revaluation Reserve Other Restricted Funds Total University 59

24. 其他基金 一段般及發展儲備基金 其他一般基金 總計 綜合 2005年7月1日之結餘 本年度盈餘 於聯營公司所佔法定儲備之變動 匯兌儲備之變動 2006年6月30日之結餘 基金轉撥 200７年6月30日之結餘 本年度盈餘 於聯營公司所佔法定儲備之變動 匯兌儲備之變動 基金轉撥 2005年7月1日之結餘 本年度盈餘 基金轉撥 2006年6月30日之結餘 本年度盈餘 基金轉撥 2007年6月30日之結餘

OTHER FUNDS General & Development Reserve Fund $'OOO Other General Funds $'OOO Total $'OOO Consolidated Balance as at 1 July 2005 Surplus for the year Change in share of statutory reserves of an Associate Change in exchange reserve Inter-fund transfer Balance as at 30 June 2006

Surplus for the year Change in share of statutory reserves of an Associate Change in exchange reserve Inter-fund transfer 0 (1,292) (1,292) Balance as at 30 June 2007 University Balance as at 1 July 2005 873,267 450,058 1,323,325 Surplus for the year Inter-fund transfer Balance as at 30 June 2006 Surplus for the year Inter-fund transfer Balance as at 30 June 2007

60 配對撥款及關連捐款 大學教育資助委員(教資會)安排配對補助金計劃，教資會根據院校所籌集的合規格捐款配發撥款，計劃中所籌集的撥 款及捐款及相關開支已於收支表中入帳。而未使用的餘領則留存在有關基金項下。此外，教資會要求領額外披露配對撥款 及相關捐款的資料，為附合要求有關收支的詳情摘錄如下： 7月1日之結餘 收入 撥款／捐款 投資／利息收入 支出 推進教學及研究 學術強化及特訂頭域發展 國際化及學生交流活動／學生發展／獎學金／助學金 6月30日之結餘

MATCHING GRANTS AND RELATED DONATIONS

The University Grants Committee (UGC) has arranged Matching Grant Schemes under which qualified donations raised by institutions are matched by UGC grants. The amounts of grants and donations raised and expenses incurred under the Schemes have been included in the income and expenditure statement and unspent balances of grants and donations have been retained in the respective funds. In compliance with UGC's requirement for separate disclosure of the matching grants and related donations, details of income and expenditure are extracted and set out below: UGC UGC Matching Matched Matching Matched Grant Donations Grant Donations

$'OOO S'OOO $'OOO S'OOO Consolidated 381,341 595,363 127,055 1 18,576 Balance as at 1 July Income Grants / Donations Investment / Interest Income Expenditure Teaching and Research Enhancement Academic Strength and Niche Area Development Internationalization and Student Exchange Activities I Student Development I Scholarship

Bursary

Balance as at 30 June

61

26 有關連人士的交易 所有牽涉大學校董會成員或主要管理人員或與該等人士有利益關係的機構之採購及捐款活動均按照大學的條例及程序於日常業務 運作下進行，在此財務報表，大學及集團與政府部門、機關或政府單位之間的一切交易，均被視為與有關連人士的交易。惟政府 與大學間因日常業務關係而支付的差餉及費用等交易除外，於年內與有關連人士的交易大致已包括於附註3及附註２１之政府補助內， 除上述者外，大學及集團與其他有關連人士訂立的交易如下： 附屬公司 Subsidiaries 與附屬公司之交易 支付于附屬公司之租金 附屬公司支付之管理費 附屬公司支付之租金 附同公司支付之項目經常開支 附屬公司（退還）／代收之學費 附屬公司償還代支之其他費用 附屬公司應付款項 附屬公司應收款頂 附屬公司應付／應收款項並無抵押，不計利息，於收到知自後須立即償還。 聯營公司 從聯營公司收取之股息 與聯營公司之交易 支付聯營公司之租金／其他費用 主要管理人員的酬金 薪金及其他短期僱員福利 離職福利

26 RELATED PARTY TRANSACTIONS

All transactions including procurement of goods and services as well as donations involving members of the University Council or key management personnel or organizations in which they may have an interest are conducted during the normal course of operation in accordance with the University’s regulations and procedures. For the purpose of these financial statements, transactions between the University and Government department, agencies of Government entities, other than those transactions such as payment of rates and fees etc. That arise in the normal dealing bwteen the Government and the University, are considered as related party transactions. Significant related party transactions during the year principally included Government Subventions as disclosed in notes 3 and 21. In addition, the University and the Group have entered into the following transactions with other related parties:

Subsidiaries Transactions with subsidiaries Rental paid to subsidiaries Management fee charged to subsidiaries Rental income/ occupancy fee charged to subsidiaries Project overhead charged to subsidiaries Tuition fee(refunded) / collected through subsidiaries Other expenses recharged to subsidiaries Amount due from subsidiaries Amount due to subsidiaries Amount due from/to subsidiaries are unsecured, non-interest bearing and are repayable on demand An Associate Dividend received from an Associate Transactions with an Associate Rental/other fee paid to an Associate Key management personnel compensation Salaries and other short-term employee benefits Post employment benefits

62 承擔 資本承擔 以下為尚未於財務報表作出準備之資本承擔： 已簽約 已獲授權但尚未簽的 營運租約之承擔 截至六月三十日止，集團於不可撤銷營運租約之條款下所簽定之日後最低租賃付款合共如下： 首年內 第２至第5年內 截至六月三十日止，集團擁有不可撤銷營運租賃之日後最低租賃收入合共如下： 首年內 第2至第5年內

27 COMMITMENTS

(a)

Capital Commitments

Outstanding capital commitments not provided for in the financial statements were as follows: Consolidated and University Contracted for Authorised but not contracted for Operating Lease Commitments Consolidated As at 30 June, the Group had future aggregate minimum lease payments under non-cancellable operating leases as follows:

In the first year

In the second to fifth years inclusive

(ii)

As at 30 June, the Group had future aggregate minimum lease income under non-cancellable operating leases as follows:

In the first year

In the second to fifth years inclusive 63

27 63 27承擔（續） 營運租約之承擔（續） 截至至六月三十日止，大學於不可撤銷營運租的之條款下所簽定之日後最低租賃付款合共如下： 大日 首年內 第2至第5年內 大學以市值租出校內宿舍予外界，截至六月三十日止，大學擁有不可撤銷營運租賃之日後最低租賃 收入合共如下： 首年內 第2至第5年內 稅項 大學根據香港稅務條例第88條之規定獲豁免日繳付稅項，因此不需作出撥備。 COMMITMENTS(Cont'd)

Operating Lease Commitments (Cont’d) 2007 2006

As at 30 June, the University had future aggregate minimum lease payments under non-cancellable operating leases as follows: In the first year In the second to fifth years inclusive

The University leases surplus on-campus accommodations to outsiders at commercial market rent. As at 30June, the University had future aggregate minimum lease income under non-cancellable operating leases as follows: In the first year

In the second to fifth years inclusive

28. TAXATION

No taxation is provided as the University is exempt from taxation by virtue of Section 88 of the Inland Revenue Ordinance.

29. 金融工具 財務風險管理目標及政策 信貸風險 集團之主要財務資產為現金及等同現金、 應收賬款、預付款項、持至到期日財務資 產及其他投資，該等為集團所承受最高之 信貸風險。 集團之信貸風險主要來自應收賬款。結算 日金額為呆賬準備後淨額，由集團管理層 根據過往經驗及經濟現況作評估。

因對手均為國際信貸機構給予高評級之銀 行，所以現金及等同現金之信貸風險有 限。持至到期日財務資產均為投資級別， 而其他投資，經由財務委員會挑選及監察 之下具豐富經驗之投資經理所管理。

集團並無過度集中信貸風險，因擁有多名 對手，可分散風險。 利率風險 集團因利率轉變對銀行結餘之影響而須承 受利率風險。 價格風險 於結算日，本集團可供出售財務資產乃按 公允值計量。因此，本集團須承受價格風 險。管理層藉委任有關專才安排不同風險 之投資組合來管理此類風險。 外匯風險 集團之外匯風險主要來自港元和人民幣之 外匯變動。 集團以人民幣計算之資產和營運交易為數 不多，因此沒有參與任何外匯前衍生工具合 約作為對沖外匯風險。 流通資金風險 集團有足夠資金應付其現有營運資金需 要。

FINANCIAL INSTRUMENTS 29(a) FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

Credit risk

The Group's principal financial assets are cash and cash equivalents, accounts receivable, prepayments, held-to- maturity financial assets and investments, which represent the Group's maximum exposure to credit risk in relation to financial assets.

The Group's credit risk is primarily attributable to its accounts receivable. The amounts represented in the consolidated balance sheet are net of allowances for doubtful receivables, estimated by the Group ' s management based on past experience and their assessment of the current economy.

The credit risk on cash and cash equivalents is limited because the counterparties are banks with high credit-ratings assigned by international credit-ratings agencies. All held-to-maturity financial assets are of investment grade and investments are managed by experienced fund managers who are selected and monitored by the Finance Committee.

The Group has no significant concentration of credit risk, with exposure spread over a large number of counterparties.

Interest rate risk

The Group has exposure to interest rate risk through the impact of the rate changes on bank balances.

Price risk

The Group's available-for-sale financial assets are measured at fair value at each balance sheet date. Therefore, the Group is exposed to price risk. In order to manage this exposure, the management has appointed professional parties to arrange a portfolio of investments with different risk profiles.

Foreign currency risk

The Group's foreign currency exposures arise mainly from the exchange rate movements of the Hong Kong dollars and Reminbi.

The Group does not enter into any derivative foreign exchange contracts to hedge its foreign currency risk, as the Reminbi assets and operations of the Group is not significant.

Liquidity risk

The Group has sufficient funds to finance its ongoing working capital requirements.

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金融工具（續） 公允值 金融資產及金融負債的公允值之釐定基準 如下： 符合規條而又於活躍流通市場買賣之 金融資產的公允值，乃參考市場報價 釐定；及 其他金融資產和金融負債的公允值， 乃按貼現現金流量之定價模式或依據 觀察所得之現行市場交易價格釐定。 校董會認為，按攤銷成本在綜合財務報表 記賬之金融資產及金融負債的限面值與其 允值相若。

29. FINANCIAL INSTRUMENTS (Cont'd) The fair value of financial assets and financial liabilities are determined as follows:

the fair value of financial assets with standard terms and conditions and traded on active liquid markets are determined with reference to quoted market bid prices; and

the fair value of other financial assets and financial liabilities are determined in accordance with generally accepted pricing models based on discounted cash flow analysis or using prices from observable current market transactions. The Council considers that the carrying amounts of financial assets and financial liabilities recorded at amortized cost in the financial statements approximate the fair value.

主要會計估計及判斷 在釐定部分資產和負債的賬面金額時， 集團就不確定的未來事件對於資產負債 表日該等資產和負債的影響作出了假 設。這些估計涉及對現金流量風險調整 或貼現率、未來薪金變動和影響其他成 本的價格未來變動的假設。集團根據過 去的經驗和對未來事件的預計作出估計 和假設，並定期覆檢。除對未來事件的 假設和估計外，集團探用會計政策時亦 需要作出判斷。

持有至到期投資 就持有的固定或可確定的付款和固定到 期日的非衍生金融資產，集團如有意及 有能力待有至到期的，則歸類為持至到 期日財務資產投資。在評估某金融資產 是否符合歸類為持至到期日投資的條件 時，管理層需要作出重大判斷。如果未 能對集團是否有意及有能力持有某特定 投資至到期日作出準確的判斷，可能會 導致整個投資組合需被重新歸類為可供 出售投資財務資產。

呆壞賬撥備 本集團之呆壞賬撥備政策是根據對收回 款項之可能性之評估、賬戶之賬齡分析 及管理層之判斷作出。在評估該等應收 款頂之最終變現時需要作大量判斷，包 括每名客戶之現時信警及過往收款紀 錄。倘本集團客戶之財務狀況惡化，會 損壞其還款能力，因而有可能需要額外 撥備。

30. SIGNIFICANT ACCOUNTING ESTIMATES ANDJUDGEMENTS In determining the carrying amounts of some assets and liabilities, the Group makes assumptions of the effects of uncertain future events on those assets and liabilities at the balance sheet date. These estimates involve assumptions about such items as risk adjustment to cash flows or discount rates used, future changes in salaries and future changes in prices affecting other costs. The Group's estimates and assumptions are based on historical experience and expectations of future events and are reviewed periodically. In addition to assumptions and estimations of future events, judgements are also made during the process of applying the Group's accounting policies.

Held-to-maturity financial assets

Non-derivative financial assets with fixed or determinable payments and fixed maturity are classified as held-to-maturity financial assets if the Group has the intention and ability to hold them until maturity. In evaluating whether the requirements to classify a financial asset as held-to-maturity are met, management make significant judgements. Failure in correctly assessing the Group's intention and ability to hold specific investments until maturity may result in reclassification of the whole portfolio as available-for-sale financial assets.

Allowances for bad and doubful debts

The provision policy for bad and doubt5.d debts of the Group is based on the evaluation of collectibility and aging analysis of accounts and on management's judgement. A considerable amount of judgment is required in assessing the ultimate realisation of these receivables, including the current creditworthiness and the past collection history of each customer. If the financial conditions of customers of the Group were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required.

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