Cathay Pacific 2014 Annual Report Download - page 94

Download and view the complete annual report

Please find page 94 of the 2014 Cathay Pacific annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 112

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112

Cathay Pacific Airways Limited
92 Notes to the Financial Statements Supplementary Information
31. Financial risk management (continued)
2013
Group Company
Level 1
HK$M
Level 2
HK$M
Level 3
HK$M
Total
HK$M
Level 1
HK$M
Level 2
HK$M
Level 3
HK$M
Total
HK$M
Recurring fair value
 measurement
Assets
Investments at fair value
 – listed 259 – – 259 – – – –
 – unlisted – – 1,085 1,085 – – 994 994
Liquid funds
 – funds with investment
   managers – 7,282 – 7,282 – – – –
 – other liquid investments – 1,439 – 1,439 – 1,168 – 1,168
Derivative financial assets – 5,228 – 5,228 – 5,228 – 5,228
259 13,949 1,085 15,293 – 6,396 994 7,390
Liabilities
Obligations under finance
 leases designated as at fair
 value through profit or loss – (3,587) – (3,587) – (3,587) – (3,587)
Derivative financial liabilities – (1,076) – (1,076) – (989) – (989)
– (4,663) – (4,663) – (4,576) – (4,576)
There were no transfers between Level 1 and Level 2, or transfers into or out of Level 3 fair value hierarchy
classifications.
The fair value of the unlisted investments in Level 3 is determined using a discounted cash flow valuation technique.
The significant unobservable input used in the fair value measurement is the discount rate. Information about fair
value measurements using significant unobservable inputs (Level 3):
Unobservable inputs
Range of
unobservable
inputs
Relationship of unobservable
inputs to fair value
Possible
reasonable
change
Positive/(negative)
impact on valuation
(HK$M)
Unlisted investment
 – Discount rate 2014: 8.0%
(2013: 8.0%)
The higher the discount rate,
 the lower the fair value
2014: +/- 0.5%
(2013: +/- 0.5%)
2014: (76)/100
(2013: (79)/102)
 – Growth rate 2014: 4.3%
(2013: 4.1%)
The higher the future growth
 rate, the higher the fair value
2014: +/- 0.1%
(2013: +/- 0.1%)
2014: 17/(16)
(2013: 17/(16))