Cathay Pacific 2005 Annual Report Download - page 74

Download and view the complete annual report

Please find page 74 of the 2005 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 96

  • 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
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96

72 Cathay Pacific Airways Limited Annual Report 2005
20. Reserves
Group Company
2005 2004 2005 2004
HK$M HK$M HK$M HK$M
Retained profit 26,492 25,496 13,192 13,123
Share premium 7,531 7,455 7,531 7,455
Investment revaluation reserve 228 493 202 469
Cash flow hedge reserve 30 (1,285) 65 (1,421)
Capital redemption reserve and others 11 22 21 21
34,292 32,181 21,011 19,647
Investment revaluation reserve relates to changes in the fair value of long-term investments.
Capital redemption reserve and others include the capital redemption reserve of HK$21 million (2004: HK$21 million)
and exchange differences arising from revaluation of foreign investments.
The cash flow hedge reserve relates to the effective portion of the cumulative net change in fair values of hedging
instruments and exchange differences on borrowings and lease obligations which are arranged in foreign currencies
such that repayments can be met by anticipated operating cash flows.
The cash flow hedge reserve is expected to be credited/(charged) to operating profit as noted below when the
hedged transactions affect the profit and loss account.
Total
HK$M
2006 63
2007 66
2008 (43)
2009 (59)
2010 3
30
The actual amount ultimately recognised in operating profit will depend upon the fair values of the hedging
instruments at the time that the hedged transactions affect the profit and loss account.
Notes to the Accounts Balance Sheet