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Cathay Pacific Airways Limited Interim Report 201344
Condensed Financial Statements
Notes to the Accounts
23. Financial risk management
(a) Fair values
The fair values of the following financial instruments differ from their carrying amounts shown in
the statement of financial position:
30th June 2013 31st December 2012
Carrying
amount
HK$M
Fair value
HK$M
Carrying
amount
HK$M
Fair value
HK$M
Loans receivable 693 760 722 817
Long-term loans (23,527) (24,456) (24,637) (25,687)
Obligations under finance leases (36,285) (37,809) (38,874) (40,840)
Pledged security deposits 1,644 1,915 3,965 4,291
(b) Financial instrument carried at fair value
The following table presents the carrying value of financial instruments measured at fair value
as at 30th June 2013 across three levels of the fair value hierarchy defined in HKFRS 7 “Financial
Instruments: Disclosures” with the fair value of each financial instrument categorised in its
entirety based on the lowest level of input that is significant to that fair value measurement. Level
1 includes financial instruments with fair values measured using quoted prices in active markets
for identical assets or liabilities. Level 2 includes financial instruments with fair values measured
using quoted prices in active markets for similar assets or liabilities, or using valuation techniques
in which all significant inputs are based on observable market data. The most significant inputs are
market interest rates, exchange rates and fuel price. Level 3 includes financial instruments with fair
values measured using dividend discount model and discounted cash flow valuation techniques in
which any significant input is not based on observable market data.
30th June 2013
Level 1
HK$M
Level 2
HK$M
Level 3
HK$M
Total
HK$M
Recurring fair value measurement
Assets
Investments at fair value
– listed 166 – – 166
– unlisted – – 1,151 1,151
Liquid funds
– funds with investment managers – 9,521 – 9,521
– other liquid investments – 1,427 – 1,427
Derivative financial assets – 3,930 – 3,930
166 14,878 1,151 16,195
Liabilities
Obligations under finance leases designated as at
fair value through profit or loss – (3,674) – (3,674)
Derivative financial liabilities – (1,347) – (1,347)
– (5,021) – (5,021)