Cathay Pacific 2015 Annual Report Download - page 97

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Annual Report 2015
95
29. Financial risk management (continued)
(g) Offsetting financial assets and financial liabilities
2015
Gross amounts
of recognised
financial
assets/liabilities
HK$M
Gross amounts
of recognised
financial
assets/liabilities
offset in the
statement of
financial position
HK$M
Net amounts of
financial
assets/liabilities
presented in the
statement of
financial position
HK$M
Financial
instruments
not offset in
the statement
of financial
position
HK$M
Net amount
HK$M
Group
Derivative financial
 assets 2,778 – 2,778 (2,022) 756
Related pledged
 securitydeposits 544 (544) – – –
Obligations under
 financeleases (544) 544 – – –
Derivative financial
 liabilities (21,871) – (21,871) 2,022 (19,849)
(19,093) – (19,093) – (19,093)
2014
Gross amounts
of recognised
financial
assets/liabilities
HK$M
Gross amounts
of recognised
financial
assets/liabilities
offset in the
statement of
financial position
HK$M
Net amounts of
financial
assets/liabilities
presented in the
statement of
financial position
HK$M
Financial
instruments
not offset in
the statement
of financial
position
HK$M
Net amount
HK$M
Group
Derivative financial
 assets 3,269 – 3,269 (1,667) 1,602
Related pledged
 securitydeposits 720 (720) – – –
Obligations under
 financeleases (720) 720 – – –
Derivative financial
 liabilities (15,038) – (15,038) 1,667 (13,371)
(11,769) – (11,769) – (11,769)
The Group enters into derivative transactions under International Swaps and Derivatives Association (ISDA) master
agreements, providing offsetting in the event of default. The ISDA agreements do not meet the criteria for offsetting
in the statement of financial position. This is because the Group does not have any currently legally enforceable
right to offset recognised amounts, because the right to offset is enforceable only on the occurrence of future
events such as default on the bank loans or other credit events.
30. 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111andatenyearhistoryisincludedonpages106and107oftheannualreport.
Notes to the Financial Statements Supplementary Information