Cathay Pacific 2009 Annual Report Download - page 97

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31. Financial risk management (continued)
The movement during the year in the balance of level 3 fair value measurements is as follows:
Group
HK$M
Company
HK$M
Investments at fair value – unlisted
At 1st January 2009 992 916
Net unrealised gains or losses recognised in other comprehensive income during
the year 381 412
At 31st December 2009 1,373 1,328
32. Capital risk management
The Group’s objectives when managing capital are to ensure a sufficient level of liquid funds and to establish an
optimal capital structure which maximises shareholders’ value.
The Group regards the net debt/equity ratio as the key measurement of capital risk management. The definition
of net debt/equity ratio is shown on page 103 and a ten year history is included on pages 98 and 99 of the
annual report.
33. Impact of further new accounting standards
HKICPA has issued new and revised HKFRS which become effective for accounting periods beginning on or after 1st
January 2010 and which are not adopted in the accounts. HKFRS 9 “Financial Instruments” is relevant to the Group
and becomes effective for accounting periods beginning on or after 1st January 2013. The standard requires that
financial assets are measured at either amortised cost or fair value. The Group is in the process of assessing the
impact of this new accounting standard on both the results and the financial position of the Group.
Notes to the Accounts SUPPLEMENTARY INFORMATION
Cathay Pacific Airways Limited Annual Report 2009 95