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Cathay Pacific Airways Limited
58 Notes to the Financial Statements Statement of Profit or Loss and
Other Comprehensive Income
4. Net finance charges
2014
HK$M
2013
HK$M
Net interest charges comprise:
 – obligations under finance leases stated at amortised cost 664 659
 – interest income on related security deposits, notes and zero coupon bonds (37) (96)
627 563
 – bank loans and overdrafts
  – wholly repayable within five years 139 231
  – not wholly repayable within five years 230 96
 – other loans
  – wholly repayable within five years 107 96
  – not wholly repayable within five years 16 24
 – other long-term receivables (24) (26)
1,095 984
Income from liquid funds:
 – funds with investment managers and other liquid investments at fair value
   through profit or loss (57) (53)
 – bank deposits and others (175) (152)
(232) (205)
Fair value change:
 – (gain)/loss on obligations under finance leases designated as at fair value
   through profit or loss (40) 29
 – loss on financial derivatives 335 211
295 240
1,158 1,019
Finance income and charges relating to defeasance arrangements have been netted off in the above figures.
Included in fair value change in respect of financial derivatives are net losses from derivatives that are classified as held
for trading of HK$89 million (2013: net gains of HK$34 million).
5. Taxation
2014
HK$M
2013
HK$M
Current tax expenses
 – Hong Kong profits tax 181 182
 – overseas tax 177 182
 – under/(over) provisions for prior years 20 (36)
Deferred tax
 – origination and reversal of temporary differences (note 18) 221 347
599 675
Hong Kong profits tax is calculated at 16.5% (2013: 16.5%) on the estimated assessable profits for the year. Overseas
tax is calculated at rates of tax applicable in countries in which the Group is assessable for tax. Tax provisions are
reviewed regularly to take into account changes in legislation, practice and the status of negotiations (see note 30(d) to
the financial statements).