Singapore Airlines 2011 Annual Report Download - page 181

Download and view the complete annual report

Please find page 181 of the 2011 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 208

  • 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
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208

ANNUAL REPORT 2010/2011 179
NOTES TO THE FINANCIAL STATEMENTS
31 March 2011
38 Financial Risk Management Objectives and Policies (in $ million) (continued)
(c) Interest rate risk (continued)
Interest rate sensitivity analysis (continued)
Under these assumptions, an increase or decrease in market interest rates of one basis point for all
currencies in which the Group has borrowings and derivative financial instruments at 31 March 2011
will have the following effects:
The Group
31 March
2011 2010
Effect on Effect on
Effect on profit before Effect on profit before
($ million) equity taxation equity taxation
Increase in one basis point in market interest rates 0.1 0.7 0.4 0.5
Decrease in one basis point in market interest rates (0.1) (0.7) (0.4) (0.5)
The Company
31 March
2011 2010
Effect on Effect on
Effect on profit before Effect on profit before
($ million) equity taxation equity taxation
Increase in one basis point in market interest rates 0.1 0.6 0.4 0.3
Decrease in one basis point in market interest rates (0.1) (0.6) (0.4) (0.3)
(d) Market price risk
The Group and the Company own $397.8 million (2010: $140.6 million) and $339.9 million (2010:
$80.0 million) in available-for-sale investments respectively at 31 March 2011.
The market risk associated with these investments is the potential loss resulting from a decrease in
market prices.
Market price sensitivity analysis
If prices for available-for-sale investments increase or decrease by 1% with all other variables being
held constant, the before tax effects on equity are as follows:
The Group The Company
31 March 31 March
2011 2010 2011 2010
($ million) Effect on equity Effect on equity
Increase in 1% of quoted prices 4.0 1.4 3.4 0.8
Decrease in 1% of quoted prices (4.0) (1.4) (3.4) (0.8)