Cathay Pacific 2011 Annual Report Download - page 94

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Notes to the Accounts SUPPLEMENTARY INFORMATION
33. Financial risk management (continued)
(d) Hedge accounting
The carrying values of financial assets/(liabilities) designated as cash flow hedges as at 31st December 2011
were as follows:
2011
HK$M
2010
HK$M
Foreign currency risk
– long-term liabilities (natural hedge) (2,303) (2,595)
– cross currency swaps (1,062) 110
– foreign currency forward contracts (231) (1,211)
Interest rate risk
– interest rate swaps (695) (176)
Fuel price risk
– fuel options 749 1,301
Others
– carbon offsets (168) (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
2011
HK$M
Fair value
2011
HK$M
Carrying
amount
2010
HK$M
Fair value
2010
HK$M
Group
Loan receivable 780 875 – –
Long-term loans (18,690) (19,202) (16,986) (17,236)
Obligations under finance leases (30,323) (31,716) (28,498) (29,846)
Pledged security deposits 5,678 6,198 5,855 6,577
Carrying
amount
2011
HK$M
Fair value
2011
HK$M
Carrying
amount
2010
HK$M
Fair value
2010
HK$M
Company
Loan receivable 780 875 – –
Long-term loans (11,455) (11,689) (12,269) (12,403)
Obligations under finance leases (32,066) (34,805) (27,593) (30,166)
Pledged security deposits 870 1,166 960 1,267
The carrying amounts of other financial assets and liabilities are considered to be reasonable approximations to
their fair values.
92