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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

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