Cathay Pacific 2015 Annual Report Download - page 94

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Cathay Pacific Airways Limited
92
29. Financial risk management (continued)
(d) Hedge accounting
Thecarryingvaluesoffinancialassets/(liabilities)designatedascashflowhedgesat31stDecember2015were
as follows:
2015
HK$M
2014
HK$M
Foreign currency risk
 –long-termliabilities(naturalhedge) (6,662) (7,482)
 –crosscurrencyswaps –519
 –foreigncurrencyforwardcontracts 1,442 1,168
 –foreignexchangeswaps –(4)
Interest rate risk
 –interestrateswaps (290) (258)
Fuel price risk
 –fuelderivatives (21,291) (14,307)
(e) Fair values
The fair values of the following financial instruments differ from their carrying amounts shown in the statement of
financial position:
2015 2014
Carrying
amount
HK$M
Fair value
HK$M
Carrying
amount
HK$M
Fair value
HK$M
Loans receivable 536 575 601 650
Long-term loans (35,602) (37,202) (33,697) (35,185)
Obligations under finance leases (28,047) (28,904) (32,119) (33,171)
Pledged security deposits 544 671 720 855
These financial instruments are measured using quoted prices in active markets for similar assets or liabilities, or
using valuation techniques in which all significant inputs are based on observable market data. The most significant
inputs are market interest rates.
The carrying amounts of other financial assets and liabilities are considered to be reasonable approximations to
their fair values.
Notes to the Financial Statements Supplementary Information