Financial Statements for the Year Ended 30 June 2008

Abstract

[evdate 2008-06-30] Financial Statement for the year ended 30 June 2008

CONTENTS Treasurer's Report Independent Auditor's Report Consolidated Income and Expenditure Statement University Income and Expenditure Statement Consolidated Balance Sheet University Balance sheet Consolidated Statement of Changes in Fund Balances University Statement of Changes in Fund Balances Consolidated Cash Flow Statement University Cash Flow Statement Notes to the Financial Statements THE HONG KONG UNIVERSITY OF SCIENCE AND TECHNOLOGY FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2008

TREASURER'S REPORT Operating Results for the Year 2007/08 is another fruitful year for the University. After catering for the increased expenditure for the expanding activities, the University was able to $487.6 million for 2006/07). This has further strengthened the University's financial position in transition to 2012 when the 4-year undergraduate (UG) system is launched. Consolidated Income Consolidated income for the year was $2,780.5 million ($2,721 1 million in 2006/07), comprising $1,68 (212 ) 234 million (60.4%) from government subventions, $589.5 from tuition and program fees, from interest and investment income, from donations, $140.0 million (5.0%) from auxiliary services and other income of $79.8 million (2.9%). 2007/08 The increase in consolidated income in 2007/08 was mainly attributable to a supplementary grant from the University Grants Committee (UGC) for the cost of living salary adjustment, a growth in tuition fees from the expanding self-financing education programs and activities, but partly offset by a decrease in investment and interest income due to a downturn in the investment market and lowering of bank deposit interest rates. Consolidated Expenditure Consolidated expenditure for the year was $2,401 million ($2,237.6 million in 2006/07), comprising $1,774.4 million (73.9%) for learning and research activities, $120.6 million (5.0%) for management and El0 general expenditure, $36 1.3 million (1 5.1 %) for premises and related expenses, and $144.9 million (6.0%) for other items. The increase in consolidated expenditure was partly due to an upward cost of living salary adjustment made in line with that for the civil servants, and additional expenses for the expanding self-financing programs, the growing research activities in the Mainland through the Fok Ying Tung Graduate School in Nansha, and the beginning of front-end spending on the 4-year UG system. UGC-funded Activities UGC grants accounted for $1,656.1 million or 98.5% of government subventions. This included recurrent block grant off $1,255.4 million; earmarked grants for housing, research, capital works and rates and government rent refunds of $292.2 million; and extra matching grants of $108.5 million. As at 30 June 2008, the General and Development Reserve (representing accumulated surpluses of recurrent block grant) stood at $1,00 1.4 million. Matching Grant Scheme Under the UGC Fourth Matching Grant Scheme, the University received donations and related matching grants of some $280.0 million for the year ($273.0 million in 2006107). Capital Projects With the local tertiary education system changed to a 4- year UG program, the University has plans to construct a number of additional facilities in the coming years including the New Academic Building, the IAS Academic Building, extension to the existing Academic Building, two new student hostels (total 700 places), etc.. While funding support for these facilities will mainly come from the Government, supplementary funding support are being sought from potential donors. Formal approval for each of these capital projects will be given when the relevant funding has been secured. Outlook Preparation work for the construction of the New Academic Building, the IAS building, and extension to the existing Academic Building has been started. The tender for the Enterprise Resources Planning (ERP) information system is approaching the final award stage. These projects will draw on the University's private and General and Development Reserves. With the sizeable donations and matching grants raised under the UGC Matching Grant Scheme, the University has recently embarked on an investment consultancy to review the investment asset allocation strategies to enhance its long-term return. The University will continue to be prudent in managing its finance to ensure adequate funding is available to meet its strategic development needs in transition to 2012 on the one hand; and continue to maintain a healthy reserve on the other. SIGNED David Tak-Kei SUN Treasurer of the University 14 November 2008

INDEPENDENT AUDITOR'S REPORT Deloitte.

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 71, which comprise the consolidated and University balance sheets as at 30 June 2008, and the consolidated and University income and expenditure statements, the consolidated and University statements of changes in fund balances and the consolidated and University cash flow statements 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. 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 the Group as at 30 June 2008 and their surplus and cash flows for the year then ended in accordance with Hong Kong Financial Reporting Standards. SIGNED Deloitte Touche Tohmatsu Certified Public Accountants HONG KONG 14 November 2008

CONSOLIDATED INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 30 JUNE 2008 2008 2007 Notes $'OOO $'OOO 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 from operation for the year

CONSOLIDATED INCOME AND EXPENDITURE STATEMENT (Cont'd) FOR THE YEAR ENDED 30 JUNE 2008 2008 2007 Notes Share of Result of a Jointly Controlled Entity Share of Result of an Associate Surplus for the year before transfers Transfers to : Restricted Funds Other Funds

UNIVERSITY INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 30 JUNE 2008 2008 2007 Notes 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 before transfers

UNIVERSITY INCOME AND EXPENDITURE STATEMENT (Cont'd) FOR THE YEAR ENDED 30 JUNE 2008 2008 2007 Notes Transfers to : Restricted Funds Other Funds CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2008 2008 2007 Notes Non-Current Assets Property and Equipment Held-to-Maturity Financial Assets

Available-for-Sale Financial Assets Interest in an Associate Interest in a Joint Venture Bank Deposits with Maturity over One Year Current Assets Held-to-Maturity Financial Assets Stocks Accounts Receivable and Prepayments Bank Deposits with Original Maturity over Three Months Cash and Cash Equivalents Current Liabilities Accounts Payable and Accruals Provision of Staff Benefits Deferred Income Net Current Assets

Total Assets Less Current Liabilities

CONSOLIDATED BALANCE SHEET (Cont'd) AS AT 30 JUNE 2008 Notes Non-Current Liabilities Provision of Staff Benefits NET ASSETS Deferred Capital Funds Restricted Funds Other Funds TOTAL FUNDS

Approved by the Council on 14 November 2008 SIGNED David T.K. SUN Treasurer of the University SIGNED Paul C.W. CHU President SIGNED Philip S.P. WONG Associate Vice-President for Administration and Business and Director of Finance

UNIVERSITY BALANCE SHEET AS AT 30 JUNE 2008 Notes Non-Current Assets Property and Equipment Held-to-Maturity Financial Assets Available-for-Sale Financial Assets Investment in an Associate Investments in Subsidiaries Bank Deposits with Maturity over One Year Current Assets

Held-to-Maturity Financial Assets Stocks Accounts Receivable and Prepayments Bank Deposits with Original Maturity over Three Months Cash and Cash Equivalents 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 2008

Notes Non-Current Liabilities Provision of Staff Benefits NET ASSETS Deferred Capital Funds Restricted Funds Other Funds

TOTAL FUNDS

CONSOLIDATED STATEMENT OF CHANGES IN FUND BALANCES Deferred Capital Funds Restricted Other Funds Funds Total Funds Balance as at 1 July 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 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 Balance as at 30 June 2007

CONSOLIDATED STATEMENT OF CHANGES IN FUND BALANCES (Cont'd) Deferred Capital Restricted Other Total Funds Funds Funds Funds Balance as at 1 July 2007 Surplus for the year Endowment Funds received Unrealised gain on Available-for-Sale Financial Assets Loss realised upon 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 Change in share of statutory reserves of an Associate Change in exchange reserve Inter-fund transfer Balance as at 30 June 2008

UNIVERSITY STATEMENT OF CHANGES IN FUND BALANCES Deferred Capital Funds Restricted Other Funds Funds Total Funds Balance as at 1 July 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 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 Balance as at 30 June 2007

UNIVERSITY STATEMENT OF CHANGES-IN FUND BALANCES (Cont’d) Deferred Capital Restricted Other Total Funds Funds Funds Funds Balance as at 1 July 2007 Surplus for the year Endowment Funds received Unrealised gain on Available-for-Sale Financial Assets Loss realised upon 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 Balance as at 30 June 2008

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2008 Operating Activities Net Surplus for the year Depreciation Bad debt written off Loss / (gain) on disposal of Property and Equipment Interest and Investment Income Amortisation of (discount) / premium on Held-to-Maturity Financial Assets Share of results of an Associate / a Jointly Controlled Entity Transfer from Deferred Capital Fund Operating cash flow before movement in working capital Decrease / (increase) in Stocks Increase in Accounts Receivable and Prepayments Increase in Accounts Payable and Accruals Increase in Deferred Income Increase / (decrease) in Provision of Staff Benefits Net Cash from Operating Activities

UNIVERSITY CASH FLOW STATEMENT (Cont'd) FOR THE YEAR ENDED 30 JUNE 2008 Investing Activities Payment for purchase of Property and Equipment Increase in Bank Deposits Purchase of Held-to-Maturity Financial Assets Increase in Available-for-Sale Financial Assets

Proceeds from redemption of Held-to-Maturity Financial Assets Proceeds from disposal of Property and Equipment Interest and investment income received Net Cash From / (Used in) Investing Activities Financing Activities Endowments received Subventions and donations received for purchase of Property and Equipment Net Cash from Financing Activities Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents at the Beginning of the Year Cash and Cash Equivalents at the End of the Year

NOTES TO TIZE FINANCIAL STATEMENTS 30 JUNE 2008 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 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.

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. Investments in 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 fmancial 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, profits or losses are eliminated to the extent of the Group's interest in the relevant associate. 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. A joint venture arrangement that involves the establishment of a separate entity in which venturers have joint control over the economic activity of the entity 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 net assets of the jointly controlled entity, less any impairment loss. Where the Group transacts with its jointly controlled entity, profits or losses are eliminated to the extent of the Group's interest in the jointly controlled entity. 2.5 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 derecognition 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. 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 £tom 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. Effective interest method The effective interest method is a method of calculating the mortised cost of financial assets and financial liabilities and of allocating interest income and interest expense over the relevant period respectively. The effective interest rate is the rate that exactly discounts estimated future cash receipts and cash payments through the expected life of the respective financial assets and financial liabilities, or, where appropriate, a shorter period. Interest income and interest expense are recognised on an effective interest basis. 2.6 (a) 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 amortised cost using the effective interest rate method. When accounts receivable or amounts due from subsidiaries is considered uncollectible, it is written off against the allowance account. 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. Subsequent recoveries of amounts previously written off are credited to income and expenditure statment. 2.6 (b) 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. 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. 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. 2.6 (c) 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. 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. 2.7 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. 2.8 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 their 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. 2.9 Income Government subventions and donations containing a condition for refund of any unspent balance are initially credited to the Deferred Income Account when the amounts are received or receivable. Amounts are then transferred from the Deferred Income Account in the following manner: in respect of the recurrent block grant: all grants received in respect of the year are transferred to the Income and expenditure account unless the accumulated surpluses from block grants exceeded the maximum limit permitted by UGC. In that event, the transfer to the Income and Expenditure Account will be reduced by any amount refundable to the government. in respect of grants or donations intended for other expenditure: amounts equivalent to the expenditure incurred during the year are transferred to the Income and Expenditure Account. in respect of grants or donations intended for capital expenditure: amounts incurred in relation to capital expenditure on related property and equipment are transferred to Deferred Capital Funds Account. Subsequently, amounts are transferred each year from the Deferred Capital Funds Account to the Income and Expenditure Account as Government Subventions or Donations & Benefactions equivalent to the depreciation charges of the related property and equipment for the year. 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. Other subventions, grants and donations received are recognised as income when received or receivable. 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. 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 recognized on a straight-line basis over the term of the relevant lease. 2.10 The Group as lessee Rentals pay- able 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. 2.11 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 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. 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. 2.13 APPLICATION OF NEW AND REVISED HONG KONG FINANCIAL REPORTING STANDARDS In the current year, the Group has applied, for the first time, the following new standard, amendment and interpretations (New HKFRSs) issued by the HKICPA, which are effective for the Group's financial year beginning 1 July 2007. HKAS 1 (Amendment) HKFRS 7 Capital disclosures Financial instruments: Disclosures HK(IFRIC) - INT 10 Interim Financial Reporting and Impairment HK(IFRIC) - INT 11 HKFRS 2 - Group and Treasury Share Transactions

The adoption of these New HKFRSs had no material effect on how the results and financial position of the Group for the current or prior accounting periods have been prepared and presented. Accordingly, no prior period adjustment has been required. The Group has applied the disclosure requirements under HKAS 1 (Amendment) and HKFRS 7 retrospectively. Certain information presented in prior year under the requirements of HKAS 32 has been removed and the relevant comparative information based on the requirements of HKAS 1 (Amendment) and HKFRS 7 has been presented for the first time in the current year The Group has not early applied the following new and revised standards, amendments or interpretations that have been issued but are not yet effective.

HKAS 1 (Revised) HKAS 23 (Revised) HKAS 27 (Revised) Presentation of Financial statements Borrowing costs Consolidated and Separate Financial statements2 HKAS 32 & HKAS 1 (Amendments) Puttable Financial Instruments and Obligations Arising on HKFRS 2 (Amendment) Vesting conditions and cancellations1 HKFRS 3 (Revised) Business combinations2 HKFRS Operating segments

APPLICATION OF NEW AND REVISED HONG KONG FINANCIAL REPORTING STANDARDS (Cont'd)

HK(IFRIC) - INT 12 Service Concession Arrangements HK(IFRIC) - INT 13 Customer Loyalty Programme HK(IFRIC) - INT 14 HKAS 19 - The Limit on a Defined Benefit Assets, Minimum Funding Requirements and their Interaction3 HK(IFRIC) - INT IS Agreements for the Construction of Real Estate HK(IFRIC) - INT 16 Hedges of a Net Investment in a Foreign Operation Effective for accounting periods beginning on or after January 1,2009. Effective for accounting periods beginning on or after July 1,2009. Effective for accounting periods beginning on or after January 1,2008. Effective for accounting periods beginning on or after July 1,2008. Effective for accounting periods beginning on or before October 1,2008. The adoption of HKFRS 3 (Revised) may affect the accounting for business combination for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after 1 July 2009. HKAS 27 (Revised) will affect the accounting treatment for changes in a parent's ownership interest in a subsidiary that do not result in a loss of control, which will be accounted for as equity transactions. The Council anticipate that the application of the other new or revised standards, amendments or interpretations will have no material impact on the results and the financial position of the Group. 3. GOVERNMENT SUBVENTIONS Be Consolidated 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 Ms : Note : Included $82.626 million (2007:$81.938 million) transferred from Deferred Capital Funds. 3. GOVERNMENT SUBVENTIONS (Cont'd) A3 University 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 rgrmeB8maft Grants from Government Agencies Note : included $82.626 million (2007:$81.938 million) transferred from Deferred Capital Funds.

TUITION, PROGFWWUES AND OTHER FEES Consolidated UGC-Funded Programmes Tuition Fees Application and Other Fees Non UGC-Funded Programmes UGC-Funded Programmes Tuition Fees Application and Other Fees Non UGC-Funded Programmes University 5. INTEREST AND INVESTMENT INCOME Be Consolidated Interest and other investment income Realised gains and investment income on Available-for-Sale Financial Assets Interest income Realised gains and investment income on Available-for-Sale Financial Assets Dividend received from an Associate University 6. DONATIONS AND BENEFACTIONS Consolidated and University Capital Projects Scholarships and Bursaries Learning and Research Activities ms : Note :

Included $44.324 million (2007:$44.433 million) transferredfr.om Deferred Capital Funds. 7 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 RM Others 2008 2007 Be Consolidated

University 54,095 50,937

OTHER INCOME 2008 2007 consolidated Contract Research Others Contract Research Others University 6,059 9,064

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 Total Expenditure for Year 2008 Total Expenditure for Year 2007 Salaries and Benefits Operating Expenses 5'000 (H$39.1) (Note 9.1) Depreciation Be Consolidated 2008 iR2t Total $'OOO 2007 Total Included in Salaries and Benefits was a total sum of $122.4 million (2007: $1 16.3 million) representing the Group's contributions towards retirement benefits schemes for the respective accounting period.

EXPENDITURE (Cont'd) 2008 2007 Salaries and Operating Benefits Expenses Depreciation Total Total (Note 9.1) University Learning and Research Instruction and Research Library Central Computing Facilities Other Academic Services d\M 1,192,518 432,237 48,793 1,673,548 1,584,061 Subtotal Institutional Support Management and General Premises and Related Expenses Student and General Education Services Other Activities Subtotal Total Expenditure for Year 2008 Total Expenditure for Year 2007 Included in Salaries and Benefits was a total sum of $121.3 million (2007: $1 15.6 million) representing the University's contributions towards retirement benefits schemes for the respective accounting period. 9.1 ANALYSIS OF OPERATING EXPENSES 2008 2007 $I000 $'OOO Consolidated Learning and Research General Office 1 Teaching and Research Expenses 1 Equipment Library Books and Periodicals Postgraduate Studentships Management and General Auditors' Remuneration Financial Charges General Insurance General Office Expenses 1 Equipment Legal Fee 9.1 ANALYSIS OF OPERATING EXPENSES (Cont'd) Consolidated Premises and Related Expenses General Office Expenses 1 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 I Equipment Medical and Dental Care for Students Residence Halls Scholarships and Bursary Student Activities Other Activities 9.1 ANALYSIS OF OPERATING EXPENSES (Cont'd) 2008 2007 University Learning and Research General Office 1 Teaching and Research Expenses 1 Equipment Library Books and Periodicals Postgraduate Studentships Management and General Auditors' Remuneration Financial Charges General Insurance General Office Expenses I Equipment

Legal Fee 9.1 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(Note) Note :

The amount included an allowance for amounts due from subsidiaries of $20 million (2007: Nil). 10- REMUNERATION OF HIGHER PAID STAFF Number of Employees Consolidated and University Annual Equivalent Remuneration Remuneration includes salary, contribution to gratuity /retirement schemes, housing and other benefits. For staff who are provided with quarters, their housing benefiits are calculated by reference to the rateable values assessed by the Rating and Valuation Department. 11. PROPERTY AND EQUIPMENT Buildings Construction Fixtures and Buildings in progress equipment Total

Consolidated COST

Balance as at 1 July 2006 Additions Transfers Exchange translation difference Disposals Written Off Balance as at 30 June 2007

Additions Exchange translation difference Disposals Written Off Balance as at 30 June 2008 DEPRECIATION

Balance as at 1 July 2006 Provided for the year Exchange translation difference Disposals Written Off Balance as at 30 June 2007 Provided for the year Exchange translation difference Disposals Written Off Balance as at 30 June 2008 CARRYING VALUES Balance as at 30 June 2008 Balance as at 30 June 2007 The University campus located in Sai Kung of approximately 60 hectares was granted by the Hong Kong Government at a nominal rent for 58 years through 30 June 2047. A piece of land situated at Shenzhen of approximately 7,484 square meters was granted at a nominal amount to HKUST R&D Corporation (Shenzhen) Limited, a subsidiary of the Group, by the Shenzhen Municipal Government for the construction of an Industry-Education- Research base.

The above items of property and equipment are depreciated on straight-line basis at the following rates per annum: Buildings per annum Fixtures and equipment 20% - 25% per annum 48 11. PROPERTY AND EQUIPMENT (Cont'd) Construction Fixtures and equipment Buildings in progress equipment Total University COST Balance as at 1 July 2006 Additions Transfers Disposals /Written Off Balance as at 30 June 2007 Additions Disposals Written Off Balance as at 30 June 2008 DEPRECIATION Balance as at 1 July 2006

Provided for the year Disposals /Written Off Balance as at 30 June 2007

Provided for the year Disposals Written Off Balance as at 30 June 2008 CARRYING VALUES Balance as at 30 June 2008 Balance as at 30 June 2007

The University campus located in Sai Kung of approximately 60 hectares was granted by the Hong Kong Government at a nominal rent for 58 years through 30 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 12- FINANCIAL ASSETS Consolidated and University Held-to-Maturity Financial Assets Maturing within one year Maturing after one year Consolidated Available-for-Sale Financial Assets Unlisted, at fair value (Note 1) Unlisted, at cost (Note 2) Listed, at market value Unlisted, at fair value (Note 1) Listed, at market value University Notes : The unlisted available-for-sale financial assets at fair value were determined by reference to bid prices quoted in active markets or by find managers. The unlisted available-for-sale financial 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. 50 13. INTEREST IN AN ASSOCIATE Unlisted shares, at cost Share of post-acquisition profits, reserves and net of dividends received Share of net assets Unlisted shares, at cost 2008 2007 Consolidated

AS University Proportion of Nominal Value of Form of Place of Incorporation I Issued Capital Business Principal Place Directly Held by Class of Associate Structure of Operation the University Shares Held Principal Activity PKU-HKUST Limited People's Republic of Shenzhen-Hong Liability China Kong Institution Company Capital To foster the development contribution of high technologies in Shenzhen and to cultivate High quality human resources 2008 2007 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 14.a INTEREST IN A JOINT VENTURE Jointly controlled entity Unlisted shares, at cost Share of post-acquisition (losses) I profits and reserves Share of net assets Form of Business Name of Entity Structure Zhejiang Advanced Sino-foreign Manufacturing joint venture Institute of HKUST Co. Ltd. ('ZAMI') gig Consolidated Country of Nominal Value Incorporation of Issued Percentage of mfkH and Class of Capital Held by Voting Power Nature of Operation Shares Held the Group of the Board Business People's Capital Republic of contribution China Promotion of manufacturing research The Group holds 51% of the share capital of ZAMI and has appointed 3 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. 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, limited by guarantee and not having a share capital. However, pursuant 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. 15. INVESTMENTS IN SUBSIDIARIES 2008 2007 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 (RDC) HKUST R and D Corporation (Guangzhou) Limited HKUST R and D Corporation (Shenzhen) Limited Place Country Of Incorporation Hong Kong People's Republic of China

Proportion of Nominal Value of Issued Registered Capital Held by the University Direct Indirect University Principal Activity

To promote lifelong learning and continuing education.

Dormant To engage in technology commercialisation including industrial contracting, licensing, incubation of start-up companies and other technical services in the Pearl River Delta Area.

Guangzhou HKUST Fok Ying Tung Research Institute People's Republic of China

To engage in basic scientific research, technology innovation and associated research and development activities, as well as training of management and advanced technology personnel. MZ: Note : The University holds, prima facie, 100% interest in Nano and Advanced Materials Institute Limited ('NAMI'), a company incorporated in Hong Kong, 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 NAMI and has no entitlement to share in its profits and assets. 16. STOCKS 2008 2007 consolidated and University Stocks held by Souvenir Shop The amount of stocks recognised as an expense during the year was $393,131 ACCOUNTS RECEIVABLE AND PREPAYMENTS 2008 2007 Be Consolidated Prepayments and Deposits Amount due from UGC Accounts Receivable Prepayments and Deposits Amount due from UGC Accounts Receivable Less: Allowance for amounts due from subsidiaries University Accounts receivable are repayable on demand. Before accepting any new customers, the Group assesses the potential customer's credit quality and defines credit limits by customers. Recoverability of the existing customers is reviewed by the Group regularly. In determining the recoverability of accounts receivable, the Group considers any change in the credit quality of the accounts receivable from the date credit was initially granted up to the financial statements' report date. The accounts receivable past due but not provided for were either subsequently settled as at the date of this report or without historical default of payments by the respective customers. Accordingly, the Council believes that there is no further credit provision required on these accounts receivable as at the balance sheet date. The Group does not hold any collateral over these balances. 18. CASH AND CASH EQUIVALENTS Re Consolidated Bank Deposits with Original Maturity within Three Months Cash at Banks and in Hand Bank Deposits with Original Maturity within Three Months Cash at Banks and in Hand University

Other bank and cash balances included cheques issued but not yet presented for payment. There was no physical overdraft at 30 June 2008 (2007: Nil).

ACCOUNTS PAYABLE AND ACCRUALS Be Consolidated Other Accounts Payable and Accruals Other Accounts Payable and Accruals university 20. PROVISION OF STAFF BENEFITS Consolidated Gratuities Leave Pay and Others Payable: Within 1 year After 1 year Gratuities Leave Pay and Others University Payable: Within 1 year After 1 year 21. DEFERRED INCOME Balance as at 1 July 2006 UGC Government Subventions Agencies Donations Total consolidated and University Amount received / receivable Credited to income and expenditure statement Transferred to Deferred Capital Funds Balance as at 30 June 2007 Amount received / receivable (Note) Credited to income and expenditure statement Transferred to Deferred Capital Funds

Balance as at 30 June 2008 Note : Courtesy acknowledgement Included in the amount received / receivable was a donation of $4,701,819( cash basis $7,014,490) from the Hong Kong Jockey Club Charities Trust for construction and furnishing of the University's Enterprise Center. 22. DEFERRED CAPITAL FUNDS Consolidated and University Balance as at 1 July 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 (Note 1)

Buildings Fixtures and equipment Balance as at 30 June

Buildings Fixtures and equipment Notes. Deferred Capital Funds 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. Out of $126.95 million (2007: $126.371 million) transferred to income and expenditure statement, $82.626 million (2007: $81.938 million) has been included in Government Subventions and $44.324 million (2007: $44.433 million) in Donations and Benefactions. 59 23 RESTRICTED FUNDS Balance as at 1 July 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 surplus for the year Endowment Funds received Unrealised gain on Available-for-Sale Financial Assets Loss realised upon disposal of Available-for-Sale Financial Assets transferred to income and expenditure statement Inter-fund transfer balance as at 30 June 2008 Endowment Revaluation Restricted aifl- Funds Reserve Funds Total Consolidated 213,091 53,856 1,077,468 1,344,415 23 RESTRICTED FUNDS (Cont'd) Balance as at 1 July 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 Surplus for the year Endowment Funds received Unrealised gain on Available-for-Sale Financial Assets Loss realised upon disposal of Available-for-Sale Financial Assets transferred to income and expenditure statement Inter-fund transfer Balance as at 30 June 2008 Investment Other Endowment Revaluation Restricted Funds Reserve Funds Total University 24. OTHER FUNDS Balance as at 1 July 2006 Surplus for the year Change in share of statutory reserves of an Associate funds Development Other Reserve Fund General Funds Total General Consolidated 920,921 858,029 1,778,950 Change in exchange reserve Inter-fund transfer Balance as at 30 June 2007 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 2008 Balance as at 1 July 2006 Surplus for the year Inter-fund transfer Balance as at 30 June 2007 Surplus for the year Inter-fund transfer Balance as at 30 June 2008 University 920,921 822,886 1,743,807 12. 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: 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 / Student Development / Scholarship / Bursary Balance as at 30 June UGC Matching Matched Matching Matched Grant Donations Grant Donations

Consolidated 3 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 organisations 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 departments, agencies or Government entities, other than those transactions such as payment of rates and fees e t . that arise in the normal dealings between 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 : Other expenses fee paid to subsidiaries

Rental paid to subsidiaries Management fee charged to subsidiaries Rental income I occupancy fee charged to subsidiaries Project overhead charged to subsidiaries Tuition fee refunded through subsidiaries Other expenses recharged to subsidiaries University

(ii) Amounts due 6om subsidiaries

Amounts due to subsidiaries Amounts due &om / to subsidiaries are unsecured, non-interest bearing and are repayable on demand. The balances are included in notes 17 and 19 respectively. (b) An Associate Dividend received from an Associate (ii) I Transactions with an Associate B :standing capital commitments not provided for in the financial statements were as follows: Contracted for Authorised but not contracted for

Consolidated and University (b) Operating Lease Commitments 2008 2007 5'000 3'000 Consolidated 6)s 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 incuded; : As at 30 June, the Group had future aggregate minimum lease income under noncancellable operatiing leases as follow\ In the first year In the second to fifth years inclusive 27. COMMITMENTS (Cont'd) Operating Lease Commitments (Cont'd) k8 University 7;: 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 30 June, 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. CAPITAL RISK MANAGEMENT The Group's and the University's finds consist of Deferred Capital Funds , Restricted Funds and Other Funds, which are set up for various designated purposes as described in notes 22 to 24. It is the Group's and the University's objective to maintain sufficient fund balance to support the Group's and the University's current and future operating expenditure requirements. The Group's and the University's overall strategy remains unchanged from prior year. 30. FIMANANCIAL INSTRUMENTS 30(a) CATEGORIES OF FINANCIAL INSTRUMENTS Consolidated Financial Assets Loans and Receivables (including Cash and Cash Equivalents) Available-for-Sale Financial Assets Held-to-Maturity Financial Assets Financial Liabilities Amortised cost Financial Assets Loans and Receivables (including Cash and Cash Equivalents) Available-for-Sale Financial Assets 8EEIJB ElHJBb Held-to-Maturity Financial Assets HJFilR Financial Liabilities Amortised cost 30. FINANCIAL INSTRUMENTS (Cont'd) 30 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES The Group's and the University's major financial instruments include accounts receivable, bank deposits, investments, cash and cash equivalents and accounts payable. Details of these financial instruments are disclosed in the respective notes. The risks associated with these financial instruments and the policies on how to mitigate these risks are set out below. The management manages and monitors these exposures to ensure appropriate measures are implemented on a timely and effective manner. Price risk The Group and the University are exposed to equity price risk mainly for its investments in equity funds managed by fund managers. This risk is monitored and managed by overall asset allocation. Foreign currency risk The Group and the University are exposed to foreign currency risks primarily arising from its equity and fixed income investments that are denominated in United States dollars ('USD') and managed by fund managers. As USD is pegged to the Hong Kong dollars ('HKD'), the Group and the University considers risk of movements in exchange rates between the HKD and USD to be insignificant. In respect of investment and bank balances denominated in other currencies, the fund managers monitor and manage foreign currency exposure by entering into forward foreign currency contracts to reduce exposure where necessary. As at 30 June 2008, the percentage of financial assets denominated in currencies other than HKD and USD to total assets is 1% (2007: 2%). Interest rate risk The Group and the University are exposed to fair value interest rate risk in relation to its fixed deposits and fixed income investments. As the fixed deposits usually mature within 3 months, the risk exposure is considered not material. For fixed income investments, the fund manager employs a relative value strategy to determine the tradeoff between risk and return and monitors the risks by maintaining the portfolio ' s duration within a narrow band to the benchmark. FINANCIAL INSTRUMENTS (Cont'd) Sensitivity analysis The sensitivity analysis below have been determined based on the Group ' s and the University's exposure to interest rates for its fixed deposits and fixed income investments at the balance sheet date. If interest rates had been 50 basic points higher 1 lower, with all other variables were held constant: the Group's and the University's surplus for the year ended 30 June 2008 would increase I decrease by approximately $15.4 million and $15.2 million respectively (2007: $12.7 million and $12.6 million). This is mainly attributable to the Group's and the University's exposure to interest rates on its fixed deposits; and the Group's and the University's investment revaluation reserve would increase 1 decrease by approximately $18.3 million (2007: $18.2 million), mainly as a result of the changes in the fair value of available-for-sale fixed income investments. Credit risk The Group's and the University's principal financial assets are cash and cash equivalents, bank deposits, accounts receivable, held-to-maturity financial assets and available-for-sale financial assets, which represent the Group's and the University's maximum exposure to credit risk in relation to financial assets. The Group's and the University's credit risk are 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 and the University's management based on past experience and their assessment of the current economy. The credit risk on cash and cash equivalents and bank deposits is limited because the counterparties are banks with high credit-ratings assigned by international credit ratings agencies. All held-to-maturity financial assets and available-for-sale 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 and the University have no significant concentration of credit risk, with exposure spread over a large number of counterparties. 30. FINANCIAL INSTRUMENTS (Cont'd) Liquidity risk The Council considers that liquidity risk is limited as the the University's liabilities are within six months from respective balance sheet dates. To manage the liquidity risk, the Group and the University monitor and maintain a level of cash and cash equivalent to fulfill the normal liquidity needs. 30(c) FAIR VALUE 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 amortised cost in the financial statements approximate their fair value. 31. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS In determining the carrying amounts of some assets and liabilities, the Group and the University make 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 and the University'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, judgments are also made during the process of applying the Group's and the University'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 and the University have 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 judgments. Failure in correctly assessing the Group's and the University'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 doubtful debts The provision policy for bad and doubtful debts of the Group and the University are based on the evaluation of collectability and aging analysis of accounts and on management's judgment. 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 and the University were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required.

香港科技大學 財務報表 截至2008年6月30日止年度

目錄 司庫報告 獨立核數師報告 綜合收支報表 大學收支報表 綜合資產負債表 大學資產負債表 綜合基金變動表 大學基金變動表 綜合現金流動表 大學現金流動表 財務報表附註

香港科技大學 截至2008年6月30日止年度 財務報表

司庫報告 TREASURER’S REPORT 全年營建情況 2007／08年度為大學另一個豐盛年。在扣除大學 因擴充活動而增加之開支後，大學仍能保持 381，400，000元的可觀盈餘（2006／07年度為 487，600，000元）。使大學能保持強健的財務狀 況，為2012年實施四年新學制做好準備。 綜合收入 本年度綜合收入為2，780，500，000元（2006／07年度 為2，721，000，000元），其中，l，681，100，000元 （60．4％）為政府補助，589，500，000元出．2％）為學 費及課程收費，118，500，000元（．3％）為利息及投 資收入，171，600，000元（6．2％）為捐款， 140，000，000元（5刀％）為輔助服務收入及79，800，000 元（．9％）其他項目收入。 2007／08年度綜合收入的增加主要來自教資會因 生活指數薪金調整而增發的補助撥款，及擴充自 籌資金教育課程及活動而增長的學費，但部份被 投資回報下降及銀行存款利息下調所抵銷。 綜合開支 本年度綜合開支為2，401，200，000元（2006／0年度 為2，237，600，000元），其中，l，77434皿，000元 （73．90／0）為學術及研究活動，120，600，000元（5．00／0） 為管理及一般事務，361，300，000元（15．l％）為校 舍及有關費用，IM，900，000元（6刀切為其他項 目。

綜合開支的增幅主要來自因公務員生活指數薪金 調整而增加的開支，擴充自籌資金課程而增加的 開支，因南沙霍英東研究院而增加的內地研究活 動，還有四年新學制項目的初期開支。 發賀會贊助活動 本年度教資會撥款為1，656，100，000元，佔政府補 助的98．5％，包括整筆經常撥款1，255，400，000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292，200，000元，額外配對補助撥 款為108，500，000元。 於2008年6月30日，一段及發展儲備餘額（即整筆 經常撥款之累積盈餘）為1，001，400，000元。 配彎補助金計困 通過第四期教資會配對補助金計劃，大學共籌集 了約280，000，000元的捐款及相關配對補助金。 （2006／0年度為273，000，000元）。 建設項目 為配合2012年的四年新學制，大學計劃在未來數 年增建一系列的設施，包括新學術大樓，科大高 等研究院大樓，現有學術大樓的擴建，兩幢可提 供共700個宿位的學生宿舍。這些設施的資金主 要來自政府，大學亦會向私人籌集補助資金。在 有關資金落實後，以上項目將正式獲得批准。

展望 有關建造新學術大樓、科大高等研究院大樓及現 有學術大樓的擴建的準備工作已經展開，企業資 源計劃(ERP）訊息系統的招標工作，亦已進入了 最後決定的階段。以上各項目將會動用一殷及發 展儲備。在教資會配對補助金計劃下，大學籌集 了可觀的捐款及配對補助金，因此，大學最近聘 請投資顧問檢討資產投資分配策略，以提昇長期 回報的能力。大學將繼續謹慎理財，確保有足夠 的資源配合2012年學制轉變的策略發展，同時保 持穩健的儲備。

大學司庫 孫德基 2008年11月 14日

獨立核數師報告書 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碩至第刀頁內的 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2008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 綜合及大學現金流動表，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，編製及真實公平地呈列該等財 務報表。有關責任包括設計、實施及維護與編 製及真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。

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 及被露事項有關的審核憑證。選取的該等程序 視乎核數師的判斷，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 真貫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 真實及公平地反映大學及集團於2008年6月30日 的財務狀況以及截至當日止年度的收支結算和 現金流動。

德勤關黃陳方會計師行 執業會計師 香港 2008年11 月 14日

綜合收支報表 截2008年6月30日止年度

收入 Income 政府補助 Govemmnt Subventions 學費、課程及其他收費 Tuition，Progrws and Othe Fees 利息及投資收入 nterest and Investmen ncome 外界捐款 Donations nd Benefactions 輔助服務 Auxiliny Services 其他收入 OthCr Income 開支 ExpenmtUre 學術及研究 Leammg nd Research 教學及研究 hstTllCtlon and ReResearch 圖書館 Libop 中央電腦設備 Celltral Computing Facilities 其他教學服務

校務支援 Institutional Sopport 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 Other Activities 本年度營運所得盈餘

綜合收支報表（續） 截至2008年6月30日止年度

所佔共同控制個體的經營業績

所佔聯營公司的經營業績

本年度轉撥前盈餘 Surplus for the year before 轉撥至： Transfers to： 限定基金 Restricted Funds 其他基金

大學收支報表 截至2008年6月30日止年度 收入

政府補助 Gov Subvelltions 學費、課程及其他收費 lintlon，ProgTammes and Othe Fees 利息及投資收入 外界捐款 Donations nd BenefaCtions 輔助服務 Auxiliary Semces 其他收入 Other Ihcome 開支

學術及研究 Learmllg and Research 教學及研究

圖書館

中央電腦設備

其他教學服務 Other Acadennc Services 校務支援 Inshtutiona sllpport 管理及一般事務 Managemen nd General 校舍及有關費用 學生及一般教育服務

其他活動 Other Activihes

大學收支報表（續） 截到2008年6月30日止年度 Transfers to： 限定基金 Restricted Funds 其他基金

綜合資產負債表 2008年6月30日 非流動資產 Non－Current Assets 物業及設備 持至到期日財務資產 可供出售財務資產 Available－forsale Financial Assets 於聯營公司權益 於合資企業權益 到期日超過一年之定期存款 流動實產 Current Assets 持至到期日財務資產 Held －Maturity Financial Assets 存貨 Stocks 應收賬款及預付款項 原到期日超過三個月之定期存款 Months 現金及等同現金 流動負債 Current Liabilities 應付賬款及應計費用 教職員福利撥備 遞延收益 Deferrd icome 流動資產淨值 Net Current Assets 資產總值減流動負債

綜合資產負債表（續） 2008年6月30日 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 FU’N’DS 校董會於2008年11月14日核准本財務報表 孫德基 大學司庫 朱經武 校長 黃世邦 協理副校長（行政）及財務處處長

大學資產負債表 2008年6月30日 附註 非流動資產 Non－Current Assets 物業及設備 持至到期日財務資產 Held－to－Maturity Financial Assets 可供出售財務資產

投資於聯營公司 Investment n an Associate 投資於附屬公司

到期日超過一年之定期存款 流動資產 持至到期日財務資產

存貨 Stocks 應收賬款及預付款頂

原到期日超過三個月之定期存款 現金及等同現金 Cash and Cash Eqthvalens 流動負債 Current Liabilities 應付賬款及應計費用 AccOUnts Payable and AccrUas 教職員福利撥備 Provision of staff Benefits 遞延收益 Deferrd Income 流動資產淨值 Net Current Assets 資產總值減流動負債

大學資產負債表（續） 2008年6月30日 非流動負債 Non．Current Liabilities 教職員福利撥備 Pfovlslon of Staff Benefits 資產淨值 NET ASSETS 遞延設備基金 Deferred CSI）ital Funds 限定基金 Restricted Funds 其他基金 Other Funds 基金總和 TOTAL FUNDS

綜合基金變動表 遞延設備 基金 限定基金 其他基金 基金總和 2006年7月1日之結餘 Balance as a July 2006 本年度盈餘 Smplus for the year 留本基金收入 Endowxnent Fnds received 於可供出售財務資產未實現之盈利 Unralised gMt on Available－forsale 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環至收支報表 於年內已收及應收的補助及捐款用作購置物業及設備 Subventions nd donations received the year for PropeM and t 為以補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

於聯營公司所佔法定儲備之變動

匯兌儲備之變動 Change n excheqe reserve 基金轉撥

2007年6月30日之結餘

綜合基金變動表（續) 2007年7月1日之結餘 Balance as ail Juy 2007 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 於出售可供出售財務資產時產生之虧損被轉撥至收支報表

年內已收及應收的補助及捐款用作購置物業及設備 為以補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

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

2008年6月30日之結餘

大學基金變動表 基金 定基金 其他基金 基金和 2006年7月1日之結餘 Balance as ail July 2006 本年度盈餘 Sutplus for the year 留本基金收入 Endowtnen Funds rece’ved 於可供出售財務資產未實現之盈利 Unrealised gain on Available－forsale Financial Assets 可供出售財務資產之末實現盈利於出售時被確認及轉租至收支報表

於年內已收及應收的補助及捐款用作購置物業及設備

為以補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

基金轉撥

2007年6月30日之結餘

大學基金變動表

限定基金 其他基金 基金和 2007年7月1日之結餘 Balance as tihly2007 本年度盈餘 the year 留本基金收入 Endowmen Funds received 於可供出售財務資產未實現之盈利 Unralised gain on Available－forsale Financial Asse 於出售可供出售財務資產時產生之虧損被轉撥至收支報表 Loss realized pon disposal ofAvailable－forsale Financial AssetstrallsfeFfed to income 於年內已收及應收的補助及捐款用作購貿物業及設備

為以補助及捐款購貿的物業及設備所需折舊之款項而轉賬至收支 報表

基金轉撥

2008年6月30日之結餘

綜合現金流動表 截至g008年6月30日止年度 Operating Activities 本年度淨盈餘 Net Smplus for the year 折舊 壞帳沖銷

出售物業及設備之虧損／（溢利） Loss／（galul on disposal ofPtopefty and Eqlllpment 利息及投資收入 IntefCSt nd nves加ellt hcome 持至到期日財務資產溢價（折實）／攤銷 所佔聯營公司／共同個體的經營業績 轉撥自遞延設備基金

存貨之減少／（增加） Decrease／（Increaso m Stocks 應收賬款及預付款項之增加

應付賬款及應計費用之增加 ncrease m Accounts P…ie and Acornals 遞延收益之增加 icrease m Deferred Income 教職員福利撥備之增加／（減少）

營運活動淨現金流入

大學現金流動表 (續) 截至2008年6月 30日止年度 投資活動 Investing Activities 購買物業及設備

定期存款之增加

購買持至到期日財務資產

投資於可供出售財務資產之增加

持至到期日財務資產所得之回贈收入

出售物業及設備之收入

利息及投資收入

投資活動淨現金流入（流出） Net Cash From（Used nil Investing Activities 融資活動 Financing Activities 留本基金收入

用以購買物業及設備之補助及捐款收入 融資活動淨現金流入

現金及等同現金之淨増加

年初之現金及等同現金 匯兌變動之影響 年終之現金及等同現金

財務報表附註 2008年6月30日 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。大學的附屬 公司的主要活動及其他事項詳列於附 註15內。 大學之註冊地址及主要管理地點為香 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縝 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。 綜合基準 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 及營種政策，而自其業務獲取利益。

從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餘均在綜 合限內抵銷。 投資於附屬公司 大學於附屬公司的投資按成本值扣除 任何可確認減值虧損後在資產負債表 中入帳。 從聯營公司權益 聯營公司指本集團可對其政策決定作 重要影響之榣構，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 權益按成本值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，扣除所屬投資減償虧損入 賬。 集團內的機構與聯營公司交易而產生 之盈利或虧損均於集團所佔權益內抵

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營運上之策略， 必須合資各方決議一致通過。

共同控制實體是透過成立一個獨立機 構的合資企業安排，合資者均擁有共 同控制實體之經濟活動。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。共同控制實體權 益按成本值列入綜合資產負債表，其 後會就收購後集團應佔共同控制實體 之淨資產扣除所屬投資滅愴虧損入 賬。 集團與共同控制實體交易而產生之盈 利或虧損均於集團所佔權益內抵銷。 物業及設慮 除在建工程外，物業及設備按成本值 減累積折舊及累積減值後入帳。 除在建工程外，計除剩餘估疸後，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 減值虧損入賬及至工程完竣後才攤銷 折舊。完竣工程成本將轉撥至珀當之 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。資產出售或刪除確認所 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。

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。從購買或發行財務 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 財務負債的公允疸中扣除（視何者適用 而定）。

實際利率法乃計算財務資產及財務負 債之攤銷成本及按有關期間攤分利息 收入及利息開支之方法。實際利率乃 將佔計日後現金收入及現金支出按相 關財務資產及財務負債之預計使用年 期，或較短時期（倘合適）實際折現 之利率。 利息收入及利息開支按實際利率基礎 來確認。

2．6 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。當應收限款 或附屬公司應付款項被認為不能收回 時，其將從壞帳準備上徹銷。獲確認 之減值嚴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。隨後追回以前撇銷之款項會 計入收入。 2．6 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 ，其買賣按所同市場定立之交收期限 定下合約條款。 於其後報表日，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 回愴。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 計未來現金流量現值之間的差額而釐 定。如其後出現已確認減疸之投資可 收回升值金額，則將予以回嚴，惟回 環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 交易用途之証券，其公允值變動引致 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，於基金結 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。 該等並無活躍市場之交投報價，而其 公允疸耒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 何已確認減值虧損計算。倘具備客觀 證明資產減侍，則減值虧損於收支報 表確認。減值虧損數額乃根據資產之 脤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。 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回 撥。為可供出售債務証券於收支報表 所確認之減值，倘其公允疸於減值虧 損確認後有所調高，可於日後回撥。 2.6 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愴計算， 日後按使用實際利率法計算的已攤銷 成本列賬。

2．6(d）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。 2．6撥備 集團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 要撥備確認負債備款額由管理層 於結賬日對責任所需作出最適當估 計。倘目重大影響，以貼現現值計 算。 2．7 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。 2．8 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滅值虧損 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。而所產生的減值會即時確認 為開支。 倘若所作出的減值虧損可於日後回撥 ，資產的帳面值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愴虧損的 帳面值。所回撥的減值虧損會即時確 認為收入。

收入 當收到或應收取含退款條款的政府補 助及捐款時，該筆款項會先記入遞延 收益帳項，然後再由遞延收益帳頂依 從以下方式轉撥： 經常整筆撥款：所有年內收取的撥 款將轉至收支帳內，除非整筆撥款 的累積盈餘超越教資會所規定的最 高限額。在此情況下，轉至收支帳 的數額將扣除需退環政府的數額。 用作其他使用的撥款或捐款：等同 年內所使用之款額會轉至收支帳 內。 用作設備開支的撥款或捐款：理用 於有關物業或設備之資本性開支的 款項會轉至遞延設備基金賬內。隨 後，等同有關物業及設備的每年折 舊費會由遞延設備基金轉入收支賬 內之政府補助或外界捐款賬項。 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 期限終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。 其他補助、撥款及捐款在收取或應收 時將確認為收入。

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 存金額及週用利率計算用利率即 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賬 面淨值之利率。 來自科研合約之收入按完成百份比並 開立賬單予以確認。 2．10 營運租約 2．10（a） 來自喜種租約的租金收入在有關租約 年期內按直線基準確認。 2．10 集團在承租者 根據營運租約應付之租金以直線基準 按有開租約之年期於收支報表內列 賬。作為訂立期營浬租約誘因之已收 及應收利益，亦按直線基準於有關租 約年期分攤。 2．11 退休福利開支 為界定供款退休計劃所支付之款項， 從僱員作出供款所頭之服務後列為支 出

2.12 外匯 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，乃按交易當日適用之匯率入 賬。級各結算日，以外幣計值之貨幣 項目按結算日之匯率重新換算。按公 允值列賬之非貨幣項目按公允值定價 當日適用之匯率重新換算。以外幣並 按歷史成本計算之非貨幣項目則不會 重新換算。 因結算貨幣項目及重新換算貨幣項目 而產生之匯兌差額撥入其產生的期間 之收支報表ON重新換算按公允愴列 賬之非貨幣項目而產生之匯兌差額撥 入當期之收支報表，惟因重新換算非 貨幣項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a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。 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（換算儲備卜該匯 兌差異於該境外業務被出售期間之收 支報表內確認。

應用新訂及經修訂香港財務報告準則 集團於本年度內首次應用下列由香港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），新香港財務報告準 則均由集目於2007年7月1日開始之財政年度起生效。 香港會計準則第1號 (資本披露) HKAS 1 twendlnCllo Capital diSCjOSllYCS 香港財務報告準則第7號 金融工具：披露 HKFRS 7 Financial mstrUInents：Disclosures 香港（國際財務報告準則詮釋委員會）－詮釋IO 中期財務報告及減債 HK(IFRIC）－INT 10 Interim Financial Rporting and Impairmen 香港（國際財務報告準則詮釋委員會）－詮釋＊ 香港財務報告準則第2號－集團及庫存股份交易 採夠新香港財務報告準則對本會計年度或過往會計年度業縯及財務狀況之縝製及呈列方式並無造成任何重大影響。因此，無須 作出任何前期調整。 本集團已追溯應用香港會計準則第臘（修訂）及香港財務報告準則第7號下之披露規定。去年按香港會計準則第32號呈列之若 于資料已于血除，並於本年度首次呈列按香港會計準則第跚（修訂）及香港財務報告準則第7號之規定編製之相關比較資料。 本集團並無提早應用下列已頒布但未生效之新及經修訂準則或詮譯。 香港會計準則第矚 財務報表之呈列 HKAS（Revised） Presentaon of Financial St 香港會計準則第23號（修訂）借貸成本 HKAS 23 Revised Borrowing Costs 香港會計準則第27號（修訂）綜合及獨立財務報表 香港會計準則第32號（修訊及香港會計準則第1 可沽金融工具及清盤時之責任 號（修訂） 香港財務報告準助第2號（修訊 歸屬條件及計組 HKFRS 2（Amendment) 香港財務報告準則第3號（修訊 業務合併 HKFRS 3 revised） Business combinaTions 香港財務報告準則第8號 業務分部

應用新訂及經修訂香港財務報告準則 香港個際財務報告準則詮釋委員會）－詮釋12 服務專曹權安排’ HK（IFmC）－INT 12 Service Concession ArTang皿mtS’ 香港個際財務報告準則詮釋委員會）－詮釋13 客戶忠誠度計劃皂 HK（IFMC）－INT 13 CUstomerLoyaityProgralnlne4 香港個際財務報告準則詮釋委員會）－詮釋14 香港會計準則第Ig號－定額榣和資產之限制、最低資金要求及兩者之互動 關係3 香港個際財務報告準則詮釋委員會）－詮釋15 房地產之建造合約 HK（IFRIC）．INT15AgreemensfortheConstrUchonofRealEstate’ 香港（國際財務報告準則詮種委員會B釋16 海外業務之淨投資對沖 於2009年1月1日或以後開展之年度期間生效。 Ef耐Ivebr accollllllllg penods beginning on or a釐erlanunyl，20o9 於2009年7月1日或以後開展之年度期間生效。 Effective for accounting periods beglimin on or after July，2009． 於2008年1月1日或以後開展之年度期間生效。 EO石ctlve功r accounting penods begiw on or打br lanunyl，p008． 於2008年7月1日或以後開展之年度期間生效。 EffecDye for accollllTing penods begillllmgoll or alterjuyl，1008． 於2008年10月 1日或以後開展之年度期間生效。 探納香港財務報告準則第3號（修訂）或會影響業務合併（指收膽日期為2009年7月1日或之後開始節首個全年呈報期間開始時 或以後日子）的會計方法。香港會計準則第27號（修訂）將影響母公司於一間附同公司的擁有權有變而不會導致失去控制權時 的會計處理，有關情況將按股權交易處理。校董會預期應用其他新或經修訂之準則或詮釋對本集團之業鑪及財務狀況將不會造 成任何重大影響。

政府補助 綜合 教資會補助 整筆經常撥款／增補撥款 指定撥款 研究 房屋褊利 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 配對撥款 政府有關機構撥款

政府補助(續) 大學 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 退還差餉及地租 建設撥款及校舍改建、加建及改善工程之整筆撥款 配對撥款 政府有關機構撥款

學費、課程及其他收費 綜合 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 大學 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

利息及投資收入 綜合 利息及其他投資收入 可供出售財務資產之已實現盈利及投資收入 大學 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

外界捐款 建設項目

獎學金及助學金 Scholarships and Bursanes 學術及研究活動 綜合及大學

輔助服務 綜合 學生宿舍 Residence Halls 膳食服務 Caring servoes 紀念品部 Souvenir Shop 租金收入

教職員繳納之租金 Rental Contribution rom Staff 其他 大學 學生宿舍 Residence Halls 膳食服務

紀念品部 Souvenir Shop 租金收入 Refital Income 教職員繳納之租金 Rental Contributon rom Staff 其他

其他收入 研究合約 其他 研究合約 其他 綜合 大學

開支 薪酬及福利 營運支出 折舊 學術及研究 Learning and Research 教學及研究 hseectloll and Research 圖書館 Libmp 中央電腦設備 Central Congmp Facilities 其他教學服務 Other Academic Services 小計 Subtotal 校務支援 管理及一般事務 Manapemnd Generd 校舍及有關費用

學生及一般教育服務 and General Education Services 其他活動 Other Actlvltles

2008年度總開支 2007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

開支 新酬及福利 營運支出 折舊 總計 大學 學術及研究 Learrng and Research 教學及研究 Insthectlollgnd ResesfCh 圓書館 Library 中央電腦設備 Ce mralntral Compmp Faculties 其他教學服務 Other Academic Services 小計 Subtotal 校務支援 Institutional Support 管理及一般事務

校舍及有關費用

學生及一段教育服務 其他活動 小計 2008年度用開支 2007年度開支 薪金及福利包括大學於有關年度為退休金計劃所支付之供款共元

營運支出分析 學術及研究 Learning and Research 一般辦公室／教學及科研費用／設備 圖書館書籍及期刊 Lforary BOoks nd Periodicals 研究生助學金 PostgTaduae Seqs 管理及一般事務 Management and General 核數師酬金 Auditors’Re 1llllll eratlon 財務費用 Financial Charges 一般保險 General Insurance 一般辦公室費用／設備 Gener 法律費用 綜合

營運支出分析（續） 綜合 校舍及有關費用 Premises and Related Expenses 一般辦公室費用／設備 Generaic伍ce Expenses／Eqlllpm dd 物業保險 PoPerty Insuzance 差餉及地租 Raes and Government Rent 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 General Office E冰enses／EqmplllCllt 學生醫療及牙科保健 Medical and Dental Care for StUdents 宿舍 Residence Halls 獎學金及助學金 Scholarships and Bursmp 學生活動 Studnt Activities 其他活動

營運支出分析 大學 學術及研究 Learning and Research 一般辦公室／教學及科研費用／設備 圖書館書籍及期刊 Libop Books and Periodicals 研究生助學金 PostgTS血ate Studentships 管理及一般事務 Management and General 核數師酬金 Auditors’Remneration 財務費用 Financial Chnyes 一般保險 General nsurance 一般辦公室費用／設備 General Office Expenses／Eqlllpmellt 法律費用

營運支出分析 大學 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 學生及一般教育服務 Student and General Education Sewices 一般辦公室費用／設備 General Office EXpenses／Eqtupmen 學生醫療及牙科保健 Medical and Denal Care for StUdeds 宿舍 Residence Halls 獎學金及助學金 scholarsinps andBursny 學生活動 studnt Activities 其他活動 Other Activities（Notg

高收入員工 綜合及大學 年薪等值 薪俸 薪金 退休金計劃供款 房屋及其他津貼 大學提供宿舍 房屋福利 差餉物業估價評估

物業及設備 樓宇 在建工程 家具及設備

COST 2006年7月11日 Balance as ail w 2006 潻置 轉撥 匯兌差額 出售／撤銷 Disposals／Witten Off Balance as at 30 a 2007 添置

匯兌差額 Excheqe translation ifferece 出售／撤銷 Disposalsl Witten Off 2008年6月30日之8陪 Balance as at 30 Jne 2008 DEPRECIATION Balance as ail Jly 2006 本年度計算之折舊 Provided for the 匯兌差額 ExchangC tanslation ifferene 出售／撤銷 DISposas／Witten Off

Balance as at 30 JUne 2007 本年度計算之折舊 Provided for the year 出售／撤銷 Balance as at 30 a 2008 2008年6月30日之給巋 Balance as at 30 Jne 2008 2007年6月30日之8日 西貢 香港政治按名義租金批出 深圳市政府按名義租金批予集回其中一問附屬公司港科大研究開發(深圳)有限公司7，484平方米土地作為興建產學研基地之用 以上之物業及設用項目按直線法依照下列年率計算折舊： 樓宇 BllildingS 傢具及設備 每年2％ 2％per annurn 每年20％－25％

11. 物業及設備慮 樓宇 大學

COST 2006年7月1日之結餘 Balance as ail Jly 2006 添置

出售／撇銷 DISposals／Witen Off 2007年6月30日之結餘 Balance as at 30 Jne 2007 添置 AddihonS 出售撇銷 DispOSalS／Wittch Off 2008年6月30日之結餘 Balance as at 30 Jde 2008

DEPRECIATION 2006年7月1日之結餘 Balance as ail Jly 2006 本年度計算之折舊 Provided for the yCar 出售／徹銷 DISposals／Witten off 2007年6月30日之結糰 Balance as at 30 JIJlle 2007 本年度計算之折舊 Provided for the year 出售／柏銷 Disposals／Witten Off 2008年6月30日之結餘 Balance as at 30 Jde 2008 CARRYING VALUES 2008年6月30日之結辟 Balance as at 30 JIJlle 2008 2007年6月30日之結餘 Balance as at 30 Jne 2007 大學座落於西貢約60公頃之土地，由香港政府按名義租金批出，為婀58年，至2047年6月30日止。 以上 業及設備項目按直線法依照下列年率計算折舊： 樓宇 Buildings 傢具及設備 每年2％ 2％per annum 每年20％－25％

財務資產 持至到期日財務資產 於一年內到期 於一年後到期 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 非上市財務資產之公允值（附註1） 上市財務資產之市值 綜合及大學 綜合 大學

基金經理 私人公司發行非上市股本證券 結算日 成本扣除值 集團管理層

於聯營公司權益 非上市投資成本債 所佔收購後溢利，儲備及扣除已收股息 所佔淨資產 非上市投資成本債

聯營公司 架構模式

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 營業額 本年度溢利 集團年內應佔聯營公司業績

於合資企業權益

共同控制實體 Jointly controlled entity 非上市投資成本值

所佔收圖後（虧損）溢利及儲備 Share ofpostmpmsltion（losses）／pro fitsandreserves 所佔淨資產 共同控實巴 業務架構模式 持有股本類別 於董事局之投栗權 業務性質 浙江港科大先進爨還研 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日及其他主要股東一致決議遞過，因此，集團把“浙江港科大”歸類為共同控制之實

香港物流及供應鏈管理應用技術研發中心有限朮公司

投資於附屬公司 大學 非上市投資成本值 附屬公司 香港科技大學持續進修學院有限公司 香港 HKUST College ofLifelong Learning Hong Kong Lindted 香港科大地產有限公司 香港 HKUST Propenies Lindted Hong Kong 香港科大研究開發有限公司 香港

TeclmOlogy R and D Corporation Ldriited （”RDC”） 廣州香港科大研究開發有限公司 中華人民共和國 HKUST R and D Colporaion People七 （GuangZholl） Lboted Republic of China 香港科大研究開發（深圳洧限公司 中華人民共和國 HKUST R and D Corporation People’s （Shenzhop Limited Rpublic of China 廣州市香港科大霍英東研究院 中華人民共和國 GUan gdou HKUHKUST Fok wng TnTng People’s Research Ihstitute Republic of China 推廣持縯進修的課程 不活動

納米及先進材料研發院有限公司 致力於基本科學的研究，科技的創 新及相同科研活動的推廣，先進科 技人才及管理人員的培訓。

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393，131元0007年：383，611元）。 也收限款及預付款項 綜合 預付款項及按金 PrePay 教資會應付款頂 Amoun due rOIn UGC 應收賬款 大學 預付款項及按金 教資會應付款頂 應收賬款 AccoUnts RCceivable 減：附屬公司應付款項之減債 應收賬款於發出琯知後須立即償還。 在接受新客戶前，本集團會調查其過去信貸資料及按地區性之信貸限額而評估該潛在客戶之信用質素。本集團定 期檢討現有客戶之信貸限額及還款能力。 在衡量應收賬款之還款能力時，集團考慮其由給予信貸B至報告B期問之信貸質素變化。已過期而無作減值嚴備 之應收賬款已於本報告日前清付或相關客戶過往並無結欠款項。故此，校董會認為無需就應收賬款作減值撥備， 本集團並無就該等裝餘持有任何抵押。

現金及等同現金 原到期日為三個月或以下之定期存款 現金及銀行結餘 原到期日為三個月或以下之定期存款 現金及銀行結餘 其他銀行及現金結餘包括已簽發但未兌現之支票。於2008年6月30日時並無實質透支（2007：沒有

應付賬款及應計費用 綜合 其他應付賬款及應計費用 其他應付賬款及應計費用 大學

教職員福利撥備 綜合 退職金 代假期金及其他 應付於 一年內 一年後 大學 退職金 代假期金及其他 Leave Pay and Others 應付於： PayablC： 一年內 Within 1 year 一年後

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 2006年7月1日之結餘 Balance as at Jly 2006 已收應收之款項 計入收支報表 statement 轉入遞延設備基金 Transferrd to Deferrd Capital Funds 2007年6月30日之結餘 Balance as at 30 June 2007 已收／應收之款頂 Amoun received／receivable 計入收支報表 statemen 轉入遞延設備基金 Transferred to Deferred Capital Funds 2008年6月30日之結餘 包香港賽馬會慈善信託基金 資助大學興建創新科技中心

遞延設備基金 綜合及大學 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置物業及設備 樓宇 傢具及設備 為以捕助及捐款購置的物業及設備所需折舊之款項而轉帳至收支報表（附註1） 樓宇 傢具及設備 6月30日之結餘 樓宇 傢具及設備

限定基金 留本基金 投資重估儲備 其他 限定基金 總計 據台 2006年7月1日之結絲 Balance as ail July 2006 本年度盈砥 Smplus for the yCar 留本基金收入

於可供出售財務資產未實現之盈利 Unralised gain on Available－for－Sale Financial AssetS 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 Re coglntioll ofwallsed gain on山sposal of Available－forsale Financial AssetS ti’ansferrd to income 基金轉撥 ierfund transfer 2007年6月30日之結餘 Balance as at 30 JUne 2007 本年度盈餘 Smplus for the h 留本基金收入 EldoWInen Funs received 於可供出售財務資產未實現之盈利 Unrealised go on Available－forsale Financial Asset 於出售可供出售財務資產時產生之虧損被轉撥至收 支報表 Loss reaealsedapond exPendtUre statement 基金轉換 Interfnd tansfer 2008年6月30日之結餘 Balance as at 30 June 2008

限定基金 留本基金 投資其他 重估儲備 2006年7月 1日之結餘 Balance as ail July 2006 本年度盈餘 for the year 留本基金收入 Endo WITI oh tFundsrecelved 於可供出售財務資產末實現之盈利 Unrallsed 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 cognition of allsed gain Oil disposal of Available for－Sale Financial Assets ransferred to Income and 基金轉撥 Iner－fhad ransfer 2007年6月30日之結餘 Balance as at 30 JUne 2007 本年度盈餘 Smplus for the year 留本基金收入 received 於可供出售財務資產未實現之盈利 Unralised gain on Available－forsale Financial Assets 於出售可供出售財務資產時產生之虧損被轉撥至收 支報表 Financial Assets ransferrd to Income and

基金轉撥 Inter transfer 2008年6月30日之結餘 Balance as at 30 Jhe 2008 大學

其他基金 一般及發展 儲備€基金 其他 一般基金 總計 綜合 2006年7月1日之結餘 Balance as ail July 2006 本年度盈餘 SUrPlus for the year 從聯營公司所佔法定儲備之變動 匯兌儲備之變動 exchange resefVe 基金轉撥 Intenfijnd ransfer 2007年6月扣日之結餘 Balance as at 30 Jne 2007 本年度盈餘 SUlplus for he year 從聯營公司所佔法定儲備之變動 匯兌儲備之變動 Change m exchange reserve 基金轉撥 nterfimd rnsfer 2008年6月30日之結餘 Balance as at 30 Jne 2008 2006年7月1日之結餘 Balance as ail July 2006 本年度盈餘 Smplus for the year 基金轉撥 Inter－fund rnsfer 2007年6月30日之結餘 Balance as at 30 June 2007 本年度盈餘 Smplus for the year 基金轉盃 Interlhad transfer 2008年6月30日之鉉餘 Balance as at 30 June 2008 大學

配對撥款及關建捐款 大學教育資助委員會（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。而未使用的餘額則留存在有關基金頂下。此外，教資會要求額外披露配對撥款 及相關捐款的資料，為附合要求有關收支的詳情摘錄如下：

教資會配對撥款 配對捐款

7月1日之結餘 Balance as ail July 收入 Income 撥款／捐款 Donations 投資／利息收入 支出 推進教學及研究 Teach ReResearch 學術強化及特訂領域發展 Academic Strength and Niche Area Developmen 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

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議等人士有利益關係的檯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，大學及集日與政府部門、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 鬥係而支付的差的及費用等交易除外年內與有關連人士的交易大致已包括於附註3及附註之政府補助內。 除上述者外，大學及集日與其他有日理人士訂立的交易如下： 大學 附同公司 Subsidialles o）與附屬公司之交易 Transachons ith subsltuanes： 支付予附同公司之課程費用 Propo fee paid to subsidialles 支付予附同公司之租金 Rental paid subsidiedes 附屬公司支付之管理費 Managent fee 附同公司支付之租金 Renta Income fee chopd to subsidianes 附屬公司支付之頊目經常開支 PTOJect overhead chnyed to subsidiaties 附屬公司退還之學費 Tuihon fee reboded through subsidiaries 附屬公司償還代支之其他費用 附屬公司應付款項

附屬公司應付款項 附屬公司收款項並無抵押，不計利息，於收到知書後須立即償還。此款項已包括在附註17及19之結餘。 聯自公司

（i） 從聯營公司收取之股息 nvidend eceived from an Associate （n）與聯營公司之交易 Transachons ith an Associate 支付予聯營公司之租金／其他費用 Renta／Oher fee paid to an Associate 主要管理人員的酬金 Key manapemCDtCDtpersotind compens 薪金及其他短期僱員福利

離職福利

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： 綜合及大學 已簽約

已獲授權但尚未簽約 營運租約之承擔 截至六月三十日止，集團於不可撤銷營理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後最低租賃收入合共如下： As at 30 Jne，he Grollp had utlT pgate mmmum lease income under non

首年內 Inthefirsyear 第2至第5年內

承擔 營運租約之承檐（續） 大學 截至六月三十日止，大學於不可撤銷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 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 稅頂 大學根據香港稅務條例第88之規定獲豁免繳付稅項，因此不需作出糧備。 資本風險管理 集團及大學的基金由遞延設炤基金、限定基金及其他基金難成，該等基金是為著各樣指定目的而設立，並詳列於附註22至24內。集團 及大學的目標是保持足夠基金給糰以配合集日及大學現在及將來營浬支出需要，集團及大學的整體策略如往年一般沒有改變。

金融工具 金融工具分類 財務資產 綜合 貸款及應收款（包括現金及等同現金） Loans and Receivables（including Cash and 可供出售財務資產 Availablefor－Sale Financial Assets 持至到期日財務資產 財務負債 Financial Liabilities 攤銷成本 財務資產 貨款及應收款（包括現金及等同現金） Loans nd Receivables（ncluding Cash and Cash E…val。is） 可供出售財務資產 fo sale Financial AssetS 持至到期日財務資產 財務負債 Financial Liabilities 攤銷成本

金融工具 30 財務風險管理目標及政策 本集團及大學之主要金融工具包括應收賬 款、定期付款、投資、現金及等同現金和 應付限頂。該等金融工具之詳情披露於有 關附註。與這些金田工具相關之風險以及 有關減低該等風險之政策載於下文。管理 層監管該等風險，確保能及時和有效採取 適當措施。

價格風險 集團及大學面對之價格風險主要來自基金 經理管理之股票基金投資的入市價風險。 此風險是以資產分配限制來監管。

外匯風險 集團及大學面對之外匯風險主要來自基金 經理所投資於以美元計值之股票及固定收 益組合。但因美元與港元掛鉤，集團及大 學預期美元與港元匯率變化不大。 而有關以其他外幣計值之投資，則由基金 經理負責監察及管理外幣風險，並在有需 要時訂立菸期外匯合約以減低風險。 於2008年6月30日，以港元或美元以外計 的金融資產值約佔總資產值的年為

利率風險

集團及大學需承受由定期存款及固定收入 投資所產生的公允值利率風險。因定期存 款拖常在三個月內到期，所以其風險不 高。而固定收益投資方面，基金經理採用 相對價值策略以決定風險及回報之間的取 捨。同時，亦會把艱合的投資時段維持於 基準範圍之內，只容許些微偏差。

30 金融工具

下列敏感度分析是根據集團及大學於結算 日就定期存款及固定收益投資所面對之利 率風險來計算的。 假設其他可變動項目保持不變，倘利率上 升或下跌50個基點： 集團及大學之2008年6月30日止年度 盈餘會日定期存款利率變動而增加／ 減少分別約15，400，000元及15，200，000 元（2007年為12，700，000元及12，600，000 元）；及 集團及大學之投資重估儲備亦會因可 供出售固定收入投資之公允值變動而 增加／減少約18，300，000元（2007年為 18，200

信貸風險

集團及大學之主要財務資產為現金及等同 現金、定期存款、應收賬款、持至到期日 財務資產及其他投資，該等為集團及大學 所承受最大幅度之信貸風險。

集團及大學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 團及大學管理層根據過往經驗及經濟現況 作出評估。

因對手均為國際信貸榣構給予高評級之銀 行，所以現金及等同規金和定期存款之信 貸風險有限。持至到期日財務資產及可供 出售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。

集團及大學並無過度集中信貸風險，因擁 有多名對手，可分散風險。

30 金融工具 流動資金風險

本集團及大學的負債到期日為結算日後半 年內，故此校董會認為流動資金風險僅同 有限。管理流動資金風險方面，本集團及 大學會監察及維持現金及現金等值頂目於 管理層現為充足的水平，以應付日常營理 所需，並可減少現金流量波動之影響。 30 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 記脹之金融資產及金融負債的賬面值與其 公允值相若。

31．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， 集團及大學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。集團及 大學根據過去的經驗和對未來事件的預 計作出佔計和假設，並定期覆檢。除對 未來事件的假設和估計外，集團及大學 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，集團及大學如 有意及有能力持有至到期的，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。 如果未能對集團及大學是否有意及有能 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 本集團及大學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 等應收款項之最終變現時需要作大量判 斷，包括每名客戶之現時信譽及過往收 款紀錄。倘本集團及大學客戶之財務狀 況惡化，會損壞其還款能力，因而有可 能需要額外撥備。