Cathay Pacific 2011 Annual Report Download - page 48

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To the shareholders of
Cathay Pacific Airways Limited
(Incorporated in Hong Kong with
limited liability)
We have audited the consolidated financial statements of
Cathay Pacific Airways Limited (“the Company”) and its
subsidiaries (together “the Group”) set out on pages 48 to
97, which comprise the consolidated and company
statements of financial position as at 31st December 2011,
the consolidated statement of comprehensive income, the
consolidated and company statements of changes in
equity and the consolidated statement of cash flows for
the year then ended and a summary of significant
accounting policies and other explanatory information.
Directors’ responsibility for the consolidated
financial statements
The directors of the company are responsible for the
preparation of consolidated financial statements that give a
true and fair view in accordance with Hong Kong Financial
Reporting Standards issued by the Hong Kong Institute of
Certified Public Accountants and the Hong Kong
Companies Ordinance and for such internal control as the
directors determine is necessary to enable the preparation
of consolidated financial statements that are free from
material misstatement, whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to express an opinion on these
consolidated financial statements based on our audit. This
report is made solely to you, as a body, in accordance with
section 141 of the Hong Kong Companies Ordinance, and
for no other purpose. We do not assume responsibility
towards or accept liability to any other person for the
contents of this report.
We conducted our audit in accordance with Hong Kong
Standards on Auditing issued by the Hong Kong Institute of
Certified Public Accountants. Those standards require that
we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether
the consolidated financial statements are free from
material misstatement.
Independent Auditor’s Report
An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the
consolidated financial statements. The procedures
selected depend on the auditor’s judgement, including
the assessment of the risks of material misstatement of
the consolidated financial statements, whether due to
fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the entity’s
preparation of the consolidated financial statements that
give a true and fair view in order to design audit
procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. An audit also
includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting
estimates made by the directors, as well as evaluating the
overall presentation of the consolidated financial
statements.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our
qualified audit opinion.
Basis for qualified opinion
Included in the consolidated statement of financial
position is an investment in an associate, Air China
Limited (“Air China”). As stated in note 15 to the financial
statements, the Group applies the equity method to
account for its investment in Air China using financial
information at 30th September. In respect of the year
ended 31st December 2011, the Group has used financial
information of Air China as at and for the year ended 30th
September 2011 based on unaudited financial information
contained in Air China’s management accounts in respect
of the period from 1st October 2010 to 30th September
2011, prepared in accordance with Chinese Accounting
Standards for Business Enterprises issued by the Ministry
of Finance of the People's Republic of China. The financial
information has been adjusted by the Company’s
management for any differences to conform to the
accounting policies set out on pages 48 to 51 to the
consolidated financial statements and any significant
events or transactions of Air China for the period from 1st
October 2011 to 31st December 2011. The Group’s share
of the profits and net assets of Air China for the year
ended 30th September 2011 and as at that date included
in the Group’s consolidated financial statements for the
year ended 31st December 2011 are set out in note 15 to
the financial statements.
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