Cathay Pacific 2007 Annual Report Download - page 66

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12. Associates (continued)
2007
HK$M
2006
(restated)
HK$M
Summarised financial information of associates:
Assets 101,323 92,943
Liabilities (61,963) (55,313)
Equity 39,360 37,630
Turnover 57,057 11,411
Profit for the year 5,097 1,046
During the year ended 31st December 2006, the Group increased its shareholding from 10% to 17.3% in Air China
which became an associate. In accordance with HKFRS 3 “Business Combinations”, during 2007 the Group has
made certain adjustments to restate the fair value of the investment acquired as if these adjustments had been
recognised from the subscription date. Accordingly, reserves and investments in associates for the year ended
31st December 2006 decreased by HK$140 million.
In respect of the year ended 31st December 2007, Air China was included in the consolidated accounts based
on the most recent available accounts drawn up to 30th September 2007, but taking into account the effects of
significant transactions or events that occur in the subsequent period from 1st October 2007 to 31st December
2007. The Group has taken advantage of the provision contained in HKAS 28 “Investments in Associates”
whereby it is permitted to include the attributable share of associates’ results based on accounts drawn up to a
non-coterminous period end where the difference must be no greater than three months.
Principal associates are listed on page 89.
13. Other long-term receivables and investments
Group Company
2007
HK$M
2006
HK$M
2007
HK$M
2006
HK$M
Investments at fair value
– listed in Hong Kong 186 132 ––
– unlisted 1,256 1,139 1,142 1,057
Leasehold land rental prepayments 1,642 1,685 ––
Loans and other receivables 435 450 425 443
3,519 3,406 1,567 1,500
Leasehold land is held under medium-term leases in Hong Kong with a total unamortised value of HK$1,685 million
(2006: HK$1,727 million).
Notes to the Accounts
Balance Sheet
Cathay Pacific Airways Limited Annual Report 2007
64