Cathay Pacific 2011 Annual Report Download - page 97

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Notes to the Accounts SUPPLEMENTARY INFORMATION
34. 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 and 99 of the annual
report.
35. 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 2015. 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.
36. Event after the reporting period
In January 2012, an agreement was entered into under which a wholly owned subsidiary of the Company agreed to
purchase six Airbus A350-900 aircraft. The catalogue price of these aircraft is approximately HK$12,698 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.
Cathay Pacific Airways Limited Annual Report 2011 95