Cathay Pacific 2001 Annual Report Download - page 61

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Cathay Pacific Airways Limited Annual Report 2001 59
32. COMMITMENTS AND CONTINGENCIES
(a) Outstanding payment commitments in respect of capital items and investments authorised at the end of the
year but not provided for in the accounts amounted to:
Group Company
2001 2000 2001 2000
HK$M HK$M HK$M HK$M
Authorised and contracted for
-
aircraft and related equipment 121 6,752 121 331
-
others 12
--
122 6,754 121 331
Authorised but not contracted for
-
aircraft and related equipment 105 407 105 407
-
others
-
3
--
105 410 105 407
227 7, 1 6 4 226 738
These Group commitments are expected to be paid as follows:
HK$M
2002 204
2003 23
227
Operating lease commitments are shown in note 11.
(b) The Company has undertaken to indemnify lessors in respect of certain leasing arrangements of the Group so
as to maintain a specified rate of return on each of the lessors’ investments. The Group has been notified by
certain lessors of potential claims under these indemnities. The likelihood of any specific claims being made is
dependent upon the resolution of disputes between these lessors and a third party. No claims have been received
and the financial effect of these contingencies remains uncertain. In order to avoid prejudicing the Group’s
position, no further details are disclosed.
(c) At 31st December 2001, contingent liabilities existed in respect of guarantees given by the Company on
behalf of subsidiary, associated, other related companies and staff relating to long-term loan facilities of up to
HK$1,202 million (2000: HK$696 million).
33. CHANGES IN THE FINANCIAL STATEMENTS
In prior years, the final dividend was recognised in the year to which it related. With the introduction of the
revised HK SSAP 9 “Events after the balance sheet date”, the Group now recognises the final dividend in the
year in which it is approved by the shareholders. This change has been accounted for retrospectively and the
comparative figures have been restated accordingly.
NOTES TO THE ACCOUNTS
-
SUPPLEMENTARY INFORMATION