Cathay Pacific 1998 Annual Report Download - page 51

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49
CATHAY PACIFIC AIRWAYS LIMITED ANNUAL REPORT 1998
Notes to the Accounts – Balance Sheets
16. Deferred exchange differences and other items
Group Company
1998 1997 1998 1997
HK$M HK$M HK$M HK$M
Deferred exchange differences (66) (619) 35 (752)
Other items (1,827) (1,677) (1,708) (1,334)
(1,893) (2,296) (1,673) (2,086)
(a) Deferred exchange differences
Deferred exchange differences are expected to be charged/(credited) to operating profit as noted below, based
on exchange rates ruling at 31st December 1998.
1st half 2nd half Total
HK$M HK$M HK$M
1999 53 51 104
2000 41 30 71
2001 17 (3) 14
2002 (46) (74) (120)
2003 (16) (31) (47)
Beyond 2003 (88)
(66)
The actual exchange differences ultimately recognised in operating profit will depend upon exchange rates
ruling on the repayment dates of the relevant long-term liabilities and lease obligations.
Had HK SSAP 11 been adopted, reserves brought forward from 1997 would have been HK$619 million higher
and the reserves carried forward from 1998 would increase by HK$66 million. The effect on (loss)/profit
attributable to shareholders and (loss)/earnings per share would be:
1998 1997
HK$M HK$M
(Loss)/profit attributable to shareholders (542) 1,694
HK SSAP 11 adjustment (553) 1,520
Adjusted (loss)/profit with adoption of HK SSAP 11 (1,095) 3,214
Adjusted (loss)/earnings per share with adoption of HK SSAP 11 (32.4¢) 93.9¢
(Loss)/earnings per share (16.0¢) 49.5¢
(b) Other items
Other items principally consist of the unamortised discount arising on the purchase of zero coupon bonds and
securities for the purpose of meeting certain of the Group’s future finance lease obligations.