Cathay Pacific 1999 Annual Report Download - page 57

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Notes to the Accounts – Supplementary Information
61CATHAY PACIFIC AIRWAYS LIMITED ANNUAL REPORT 1999
33. Commitments and contingencies
(continued)
(b) At the end of the year, the Group had commitments to make payments in the next year under operating
leases as follows, analysed by expiry dates:
1999 1998
HK$M HK$M HK$M HK$M
Land and buildings
– within one year 117 122
– after one year but within five years 167 250
– after five years 60 344 81 453
Aircraft and related equipment
– within one year ––
– after one year but within five years 424 200
– after five years – 424 – 200
Others
– within one year 82
– after one year but within five years 20 21
– after five years 17 45 16 39
813 692
(c) Under some of the Group’s leasing arrangements for aircraft and related equipment, the Company has
undertaken to indemnify the lessors so as to maintain a specified rate of return on each of the lessors’
investments as agreed at the inception of the lease. The Directors do not consider that an estimate of the
potential financial effect of these contingencies can practically be made.
(d) At 31st December 1999, contingent liabilities existed in respect of guarantees given by the Company relating
to long-term loan facilities of up to HK$692 million (1998: HK$700 million).
34. Changes in the financial statements
HK SSAP 1 (revised) “Presentation of financial statements”, HK SSAP 2 (revised) “Net profit or loss for the
period, fundamental errors and changes in accounting policies” and HK SSAP 24 “Accounting for investments in
securities”, as issued by the Hong Kong Society of Accountants, are applicable to financial statements for periods
beginning 1st January 1999. The Group has therefore prepared these accounts in accordance with these new
standards. This has resulted in changes to the presentation of various items. The comparative information has
been presented in a format consistent with the new requirements.
Adoption of these new standards has no impact on the reported profit or loss of the current or prior periods.