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Cathay Pacific Airways Limited
64 Notes to the Financial Statements Statement of Financial Position
11. Intangible assets
Group Company
Goodwill
HK$M
Computer
software
HK$M
Others
HK$M
Total
HK$M
Computer
software
HK$M
Others
HK$M
Total
HK$M
Cost
At 1st January 2014 7,666 2,938 214 10,818 2,872 214 3,086
Additions – 800 39 839 787 39 826
At 31st December 2014 7,666 3,738 253 11,657 3,659 253 3,912
At 1st January 2013 7,666 2,417 148 10,231 2,352 148 2,500
Additions – 531 – 531 530 – 530
Disposals – (10) – (10) (10) – (10)
Transfer from cash flow hedges
 (note 7) – – 66 66 – 66 66
At 31st December 2013 7,666 2,938 214 10,818 2,872 214 3,086
Accumulated amortisation
At 1st January 2014 – 1,016 – 1,016 971 – 971
Charge for the year – 322 1 323 309 1 310
At 31st December 2014 – 1,338 1 1,339 1,280 1 1,281
At 1st January 2013 – 806 – 806 767 – 767
Charge for the year – 210 – 210 204 – 204
At 31st December 2013 – 1,016 – 1,016 971 – 971
Net book value
At 31st December 2014 7,666 2,400 252 10,318 2,379 252 2,631
At 31st December 2013 7,666 1,922 214 9,802 1,901 214 2,115
The carrying amount of goodwill allocated to the airline operations is HK$7,627 million (2013: HK$7,627 million). In
accordance with HKAS 36 “Impairment of Assets” the Group completed its annual impairment test for goodwill allocated
to the Group’s various cash generating units (“CGUs”) by comparing their total recoverable amounts to their total
carrying amounts as at the reporting date. The recoverable amount of a CGU is determined based on value-in-use
calculations. These calculations use cash flow projections based on five-year financial budgets, with reference to past
performance and expectations for market development, approved by management. Cash flows beyond the five-year
period are extrapolated with an estimated general annual growth rate of 1.0% to 3.0% (2013: 1.0% to 3.0%) which does
not exceed the long-term average growth rate for the business in which the CGU operates. The discount rates used of
approximately 8.5% (2013: 8.0%) are pre-tax and reflect specific risk related to the relevant segments. Management
believes that any reasonably foreseeable change in any of the above key assumptions would not cause the carrying
amount of goodwill to exceed the recoverable amount.
12. Investments in subsidiaries
Company
2014
HK$M
2013
HK$M
Unlisted shares at cost 10,370 9,748
Other investments at cost 10,783 12,150
Net amounts due from subsidiaries
 – loan accounts 13,178 7,514
 – current accounts 2,105 5,608
36,436 35,020
Included in the loan accounts and current accounts are net amounts due from subsidiaries of HK$7,262 million
(2013: HK$7,392 million) which are unsecured, interest-bearing at 0.55% to 4.87% (2013: 0.69% to 4.87%) per annum
and repayable before 31st December 2017.