Cathay Pacific 2014 Annual Report Download - page 79

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ANNUAL REPORT 2014
77Notes to the Financial Statements Statement of Financial Position
24. Reserves (continued)
The investment revaluation reserve comprises changes in the fair value of long-term investments.
Capital reserve and others of the Group comprise the capital reserve of HK$23 million (2013: HK$23 million), exchange
differences arising from revaluation of foreign investments which amounted to HK$2,247 million (2013: HK$2,774 million)
and share of associate’s other negative reserve of HK$733 million (2013: HK$681 million).
The cash flow hedge reserve relates to the effective portion of the cumulative net change in fair values of hedging
instruments and exchange differences on borrowings and lease obligations which are arranged in foreign currencies
such that repayments can be met by anticipated operating cash flows.
The gain/(loss) transferred from the cash flow hedge reserve of the Group to profit or loss items was as follows:
2014
HK$M
2013
HK$M
Turnover 489 247
Fuel (743) 725
Others 73 (63)
Net finance charge (246) (245)
Net (loss)/gain transferred to the profit or loss (note 7) (427) 664
The cash flow hedge reserve of the Group is expected to be charged to operating profit or transferred to relevant assets
as noted below when the hedged transactions affect profit or loss or the relevant assets are recognised.
Total
HK$M
2015 (5,389)
2016 (2,800)
2017 (2,482)
2018 (665)
2019 175
Beyond 2019 1,033
(10,128)
The actual amount ultimately recognised in operating profit or transferred to relevant assets will depend upon the fair
values of the hedging instruments at the time that the hedged transactions affect profit or loss.
Distributable reserves of the Company at 31st December 2014 amounted to HK$34,952 million (2013: HK$31,656
million), as calculated under the provisions of Part 6 of the new Hong Kong Companies Ordinance (Cap. 622).