Cathay Pacific 2010 Annual Report Download - page 97

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Cathay Pacific Airways Limited Annual Report 2010
95
Notes to the Accounts SUPPLEMENTARY INFORMATION
33. Capital risk management
The Group’s objectives when managing capital are to ensure a sufficient level of liquid funds and to establish an
optimal capital structure which maximises shareholders’ value.
The Group regards the net debt/equity ratio as the key measurement of capital risk management. The definition of
net debt/equity ratio is shown on page 103 and a ten year history is included on pages 98 to 99 of the annual report.
34. Impact of further new accounting standards
HKICPA has issued new and revised HKFRS which become effective for accounting periods beginning on or after
1st January 2011 and which are not adopted in the accounts. HKFRS 9 “Financial Instruments” is relevant to the
Group and becomes effective for accounting periods beginning on or after 1st January 2013. The standard requires
that financial assets are measured at either amortised cost or fair value. The Group is in the process of assessing
the impact of this new accounting standard on both the results and the financial position of the Group.
35. Event after the reporting period
In March 2011, agreements were entered into under which a wholly owned subsidiary of the Company agreed to
purchase 15 Airbus A330-300 aircraft and 10 Boeing 777-300ER aircraft. The catalogue price of these aircraft is
approximately HK$46,683 million. The actual purchase price of the aircraft, which was determined after arm’s length
negotiations between the parties, is lower than the catalogue price.