Singapore Airlines 2016 Annual Report Download - page 184

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Notes to the Financial Statements
31 March 2016
26 Long-Term Investments (in $ million)
The Group
31 March
The Company
31 March
2016 2015 2016 2015
Available-for-sale investments
Quoted
Government securities – 0.6 – 0.6
Unquoted
Non-equity investments 215.7 303.6 215.7 303.6
Equity investments 47.9 116.4 28.0 28.0
Accumulated impairment loss (18.5) (73.1) (17.3) (9.5)
245.1 347.5 226.4 322.7
Held-to-maturity investments
Quoted non-equity investments 528.0 580.1 528.0 580.1
773.1 927.6 754.4 902.8
The Group’s non-equity investments comprised investments in corporate bonds, credit-linked notes, fixed-rate notes, certificates of deposits
and investment funds.
The interest rates for quoted and unquoted non-equity investments range from 1.30% to 3.96% (FY2014/15: 1.30% to 4.47%) per annum and
1.00% to 4.08% (FY2014/15: 2.57% to 5.31%) per annum respectively.
Reclassification to assets held for sale
During the financial year, the Group entered into a conditional sale and purchase agreement with Rolls-Royce Overseas Holdings Limited and
Hong Kong Aircra Engineering Company Limited to divest its 10% stake in Hong Kong Aero Engine Services Limited (“HAESL”). The Group
remeasured its investment in HAESL to its fair value of approximately $156.5 million, and recognised a gain of approximately $141.9 million in
other comprehensive income. The divestment is expected to complete in the financial year ending 31 March 2017. In accordance with FRS 105
Non-current Assets Held for Sale and Discontinued Operations, the Group’s equity interest in HAESL was reclassified from long-term investments
to assets held for sale. The equity interest in HAESL is classified as Level 2 under the fair value hierarchy.
27 Other Long-Term Assets (in $ million)
The Group
31 March
The Company
31 March
2016 2015 2016 2015
Deposit with a financial institution 28.6 76.6 – –
Other receivables 460.8 496.1 391.3 426.7
Derivative assets 7.4 1.1 7.4 1.1
496.8 573.8 398.7 427.8
The deposit with a financial institution is held for the purpose of payment for the purchase price option payable on a finance lease (Note 19). The
amount relating to the deposit is $79.4 million, of which $28.6 million is recognised under other long-term assets and $50.8 million is recognised
under deposits and other debtors. The deposit generates interest at a fixed rate of 5.68% (FY2014/15: 5.68%) per annum to meet the obligation
at maturity of the lease in December 2017. The fair value of the deposit amounted to $84.1 million (2015: $86.0 million) as at 31 March 2016.
The Group’s other receivables are stated at amortised cost and are expected to be received over a period of two to ten years. The fair value of
the other receivables is $457.9 million (2015: $492.7 million).
Singapore Airlines182
FINANCIAL