Cathay Pacific 1999 Annual Report Download - page 49

Download and view the complete annual report

Please find page 49 of the 1999 Cathay Pacific annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 65

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65

Notes to the Accounts – Balance Sheets
53CATHAY PACIFIC AIRWAYS LIMITED ANNUAL REPORT 1999
22. Reserves
(continued)
Other reserves include the attributable post-acquisition reserves of associated companies capitalised by bonus
issues and exchange differences arising from revaluation of foreign investments.
Cash flow hedge reserve relates to exchange differences on borrowings, lease obligations, currency derivatives
and related security deposits which are arranged in foreign currencies such that repayments can be met by
anticipated operating cash flows.
Exchange differences recorded in the cash flow hedge reserve are expected to be credited/(charged) to
operating profit as noted below, based on exchange rates ruling at 31st December 1999.
1st half 2nd half Total
HK$M HK$M HK$M
2000 (89) (39) (128)
2001 (41) 19 (22)
2002 47 102 149
2003 19 37 56
2004 (107) (39) (146)
Beyond 2004 276
185
The actual exchange differences ultimately recognised in operating profit will depend upon exchange rates
ruling on the repayment dates of the relevant long-term liabilities and lease obligations.
Had HK SSAP 11 been adopted, there would have been no financial impact on the Group’s assets, liabilities
and cash flows. HK$185 million (1998: HK$66 million) would have been included in retained profit rather than
the cash flow hedge reserve and the effect on profit/(loss) attributable to shareholders and earnings/(loss)
per share would be:
1999 1998
HK$M HK$M
Profit/(loss) attributable to shareholders 2,191 (542)
HK SSAP 11 adjustment 119 (553)
Adjusted profit/(loss) with adoption of HK SSAP 11 2,310 (1,095)
Adjusted earnings/(loss) per share with adoption of HK SSAP 11 68.3¢ (32.4¢)
Earnings/(loss) per share 64.7¢ (16.0¢)