Singapore Airlines 2002 Annual Report Download - page 98

Download and view the complete annual report

Please find page 98 of the 2002 Singapore Airlines 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 116

  • 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
  • 113
  • 114
  • 115
  • 116

98
Notes to the Financial Statements
31 March 2002
SIA Annual Report 01/02
32 Financial Instruments (in $ million) (continued)
(i) Net fair values
The aggregate net fair values of financial assets and financial liabilities which are not carried at fair value on the Group and Company
balance sheets are presented as follows:-
Total carrying amount on Aggregate
Balance sheet net fair value
31 March 31 March
2002 2001 2002 2001
Group
Financial Assets
Long-term investments 590.4 556.0 631.1 562.8
Short term investments 34.2 511.4 37.4 511.8
Financial Liabilities
Notes payable 1,100.0 200.0 1,086.2 200.0
Derivative financial instruments
Foreign currency contracts * * (3.4) (21.2)
Jet fuel swap contracts * * 17.6 (21.7)
Jet fuel option contracts * – 0.2 –
Total carrying amount on Aggregate
Balance sheet net fair value
31 March 31 March
2002 2001 2002 2001
Company
Financial Assets
Long-term investments 502.9 467.3 543.6 474.1
Financial Liabilities
Notes payable 900.0 – 884.9 –
Derivative Financial Instruments
Foreign currency contracts * * (3.4) (21.0)
Jet fuel swap contracts * * 14.4 (21.4)
Jet fuel option contracts * – 0.2 –
*No balance sheet carrying amounts are shown as these are commitments as at year end.
The fair value of quoted investments is generally determined by reference to stock exchange quoted market bid prices at the close of
the business on the balance sheet date. For investments where there is no quoted market price, fair value is based on either
acquisition cost or the attributable net assets of those corporations.
The fair value of loans and borrowings is estimated using discounted cash flow analysis, based on current incremental lending rates for
similar types of lending and borrowing arrangements.
The fair value of forward currency contracts is determined by reference to current forward exchange rates for contracts with similar
maturity profiles. The fair value of jet fuel swap and option contracts is determined by reference to current forward prices for contracts
with similar maturity profiles.
The carrying amounts of the following financial assets and liabilities approximate their fair values: cash and bank balances, bank
overdrafts – unsecured, amounts owing by/to subsidiary and associated companies, unsecured loans, finance lease commitments,
trade debtors and creditors.