Cathay Pacific 2015 Annual Report Download - page 81

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Annual Report 2015
79
Notes to the Financial Statements Statement of Financial Position
21. Reserves (continued)
Distributable reserves of the Company at 31st December 2015 amounted to HK$38,295 million (2014: HK$34,952
million), as calculated under the provisions of Part 6 of the new Hong Kong Companies Ordinance (Cap. 622).
The investment revaluation reserve comprises changes in the fair value of long-term investments.
Capital reserve and others of the Group comprise the capital reserve of HK$23 million (2014: HK$23 million), exchange
differences arising from revaluation of foreign investments which amounted to HK$1,187 million (2014: HK$2,247 million)
and share of associate’s other negative reserve of HK$1,474 million (2014: HK$733 million).
The cash flow hedge reserve relates to the effective portion of the cumulative net change in fair values of hedging
instruments and exchange differences on borrowings and lease obligations which are arranged in foreign currencies
such that repayments can be met by anticipated operating cash flows.
The loss transferred from the cash flow hedge reserve of the Group to profit or loss items was as follows:
2015
HK$M
2014
HK$M
Revenue 1,295 489
Fuel (8,489) (743)
Others –73
Net finance charge (279) (246)
Net loss transferred to the profit or loss (note 5) (7,473) (427)
The cash flow hedge reserve of the Group is expected to be charged to operating profit or transferred to relevant assets
as noted below when the hedged transactions affect profit or loss or the relevant assets are recognised.
Total
HK$M
2016 (6,935)
2017 (5,930)
2018 (3,655)
2019 (298)
2020 239
Beyond 2020 1,034
(15,545)
The actual amount ultimately recognised in operating profit or transferred to relevant assets will depend upon the fair
values of the hedging instruments at the time that the hedged transactions affect profit or loss.