Cathay Pacific 2002 Annual Report Download - page 62

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Cathay Pacific Airways Limited Annual Report 2002 59
29. COMMITMENTS AND CONTINGENCIES
(continued)
(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 2002, 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$1,404 million (2001: HK$1,202 million).
30. CHANGES IN THE FINANCIAL STATEMENTS
With the introduction of HK SSAP 34 “Employee benefits”, the Group’s accounting policy on defined benefit
retirement schemes has been changed. This has resulted in changes to the presentation of certain items as
described in accounting policy 10.
Notes to the Accounts
-
Supplementary Information