Cathay Pacific 2010 Annual Report Download - page 80

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78
25. Reserves
Group Company
2010
HK$M
2009
HK$M
2010
HK$M
2009
HK$M
Retained profit 37,061 24,704 26,869 15,685
Share premium 16,295 16,295 16,295 16,295
Investment revaluation reserve 1,102 1,117 928 1,005
Cash flow hedge reserve (1,871) (1,383) (1,720) (1,244)
Capital redemption reserve and others 900 718 23 23
53,487 41,451 42,395 31,764
Investment revaluation reserve relates to changes in the fair value of long-term investments.
Capital redemption reserve and others of the Group mainly include the capital redemption reserve of HK$24 million
(2009: HK$24 million), exchange differences arising from revaluation of foreign investments amounted to
HK$1,458 million (2009: HK$1,145 million) and share of associate’s other negative reserve of HK$605 million
(2009: HK$474 million).
The cash flow hedge reserve relates to the effective portion of the cumulative net change in fair values of hedging
instruments and exchange differences on borrowings and lease obligations which are arranged in foreign currencies
such that repayments can be met by anticipated operating cash flows.
The amount transferred from the cash flow hedge reserve to the following profit and loss items was as follows:
2010
HK$M
2009
HK$M
Turnover (243) (94)
Fuel (477) (192)
Others (14) (46)
Finance income (140) (28)
Net loss transferred to the profit and loss (874) (360)
The cash flow hedge reserve is expected to be charged to operating profit/loss as noted below when the hedged
transactions affect profit and loss.
Total
HK$M
2011 331
2012 488
2013 315
2014 184
2015 148
Beyond 2015 405
1,871
The actual amount ultimately recognised in operating profit/loss will depend upon the fair values of the hedging
instruments at the time that the hedged transactions affect profit and loss.
Notes to the Accounts STATEMENT OF FINANCIAL POSITION