Ryanair 2008 Annual Report Download - page 65

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65
The carrying value and fair value of the Group’s financial liabilities by class and category were as follows:
Total Total
Amortised Cash Flow Fair Value Carrying Fair
Cost Hedges Hedges Value Value
1000 1000 1000 1000 1000
At March 31, 2008
Long term debt................................................................
....
2,266,495 - - 2,266,495 2,278,774
Derivative financial instruments
- Interest rate swaps ................................
............................
- 59,528 - 59,528 59,528
- U.S. Dollar currency forward contracts
............................
- 113,165 44,703 157,868 157,868
Trade payables................................................................
....
129,289 - - 129,289 129,289
Accrued expenses ................................
...............................
283,374 - - 283,374 283,374
Total financial liabilities at March 31, 2008
.......................
2,679,158 172,693 44,703 2,896,554 2,908,833
At March 31, 2007
Long term debt................................................................
....
1,862,066 - 1,862,066 1,877,033
Derivative financial instruments
- Interest rate swaps ................................
............................
- 72,358 - 72,358 72,358
- U.S. Dollar currency forward contracts
............................
- 24,908 17,453 42,361 42,361
Trade payables................................................................
....
127,243 - - 127,243 127,243
Accrued expenses ................................
...............................
207,311 - - 207,311 207,311
Total financial liabilities at March 31, 2007
.......................
2,196,620 97,266 17,453 2,311,339 2,326,306
Estimation of fair values:
Fair value is the amount at which a financial instrument could be exchanged in an arm’s length
transaction between informed and willing parties, other than as part of a forced liquidation sale. The
following methods and assumptions were used to estimate the fair value of each material class of the Group’s
financial instruments:
• Cash and liquid resources: carrying amount approximates to fair value due to the short-term nature
of these instruments. Cash and cash resources comprise cash and cash equivalents, short term
investments and restricted cash.
• Fixed-rate long-term debt: the repayments which Ryanair is committed to make have been
discounted at the relevant rates of interest applicable (including credit spreads) at March 31, 2008
and March 31, 2007, which would be payable to a third party to assume the obligation.
• Derivatives – interest rate swaps: discounted cash flow analyses have been used to determine the
estimated amount Ryanair would receive or pay to terminate the contracts. Discounted cash flow
analyses are based on estimated future interest rates.
• Derivatives – currency forwards and aircraft fuel contracts: a comparison of the contracted rate
to the market rate for contracts providing a similar risk management profile at March 31, 2008 and
March 31, 2007 has been made.