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like most Colonial Governments, periodically
invests surplus revenue and later sells
the investments as money is required.
On such sales, profits or losses may
as
be realised, according to
the investments have appreciated or
depreciated, and in the case of
and,
sterling investments made by the
Hong Kong Government, according
to changes in the sterling value
of the Hong Kong dollar. The
accounting treatment of such profits
or losses has varied from time to
time, but the present practice is
that such investments are valued
annually, and the book profit or
loss is shown as revenue or expenditure
in the accounts of the Colony.
The Army Council will appreciate
that although changes in the value
of investments due either to general
1