Cathay Pacific 2010 Annual Report Download - page 94

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92
32. Financial risk management (continued)
(d) Hedge accounting
The carrying values of financial assets/(liabilities) designated as cash flow hedges as at 31st December 2010
were as follows:
2010
HK$M
2009
HK$M
Foreign currency risk
– long-term liabilities (natural hedge) (2,595) (4,680)
– cross currency swaps 110 164
– foreign currency forward contracts (1,211) 46
Interest rate risk
– interest rate swaps (176) 10
Fuel price risk
– fuel options 1,301 92
Others
– carbon offsets (45) (45)
(e) Fair values
The fair values of the following financial instruments differ from their carrying amounts shown in the statement
of financial position:
Carrying
amount
2010
HK$M
Fair value
2010
HK$M
Carrying
amount
2009
HK$M
Fair value
2009
HK$M
Group
Long-term loans (16,986) (17,236) (19,299) (19,639)
Obligations under finance leases (28,498) (29,846) (30,140) (31,420)
Pledged security deposits 5,855 6,577 6,797 7,606
Carrying
amount
2010
HK$M
Fair value
2010
HK$M
Carrying
amount
2009
HK$M
Fair value
2009
HK$M
Company
Long-term loans (12,269) (12,403) (14,842) (15,085)
Obligations under finance leases (27,593) (30,166) (29,070) (31,736)
Pledged security deposits 960 1,267 1,651 1,983
The carrying amounts of other financial assets and liabilities are considered to be reasonable approximations to
their fair values.
Notes to the Accounts SUPPLEMENTARY INFORMATION