Singapore Airlines 2016 Annual Report Download - page 201

37 Financial Instruments (in $ million) (continued)
Master netting or similar agreements (continued)
Effects of offsetting in the statement
of financial position Related amounts not offset
The Company
Gross
amounts
Gross amounts
set-off in the
statements
of financial
position
Net amounts
presented in the
statements
of financial
position
Amounts
subject to
master netting
arrangements Net amount
31 March 2016
Derivative assets 29.7 – 29.7 (27.7) 2.0
Trade debtors 808.0 (8.6) 799.4 – 799.4
Amounts owing by subsidiaries 469.5 (151.5) 318.0 – 318.0
1,307.2 (160.1) 1,147.1 (27.7) 1,119.4
Derivative liabilities 699.8 – 699.8 (27.7) 672.1
Trade and other creditors 2,203.5 (8.6) 2,194.9 – 2,194.9
Amounts owing to subsidiaries 1,342.6 (151.5) 1,191.1 – 1,191.1
4,245.9 (160.1) 4,085.8 (27.7) 4,058.1
31 March 2015
Derivative assets 107.4 – 107.4 (86.3) 21.1
Trade debtors 1,000.1 (1.8) 998.3 – 998.3
Amounts owing by subsidiaries 478.5 (167.0) 311.5 – 311.5
1,586.0 (168.8) 1,417.2 (86.3) 1,330.9
Derivative liabilities 982.2 – 982.2 (86.3) 895.9
Trade and other creditors 2,090.4 (1.8) 2,088.6 – 2,088.6
Amounts owing to subsidiaries 1,215.7 (167.0) 1,048.7 – 1,048.7
4,288.3 (168.8) 4,119.5 (86.3) 4,033.2
38 Financial Risk Management Objectives and Policies (in $ million)
The Group operates globally and generates revenue in various currencies. The Group’s airline operations carry certain financial and commodity
risks, including the eects of changes in jet fuel prices, foreign currency exchange rates, interest rates and the market value of its investments.
The Group’s overall risk management approach is to moderate the eects of such volatility on its financial performance through the use of
derivatives to hedge specific exposures.
As derivatives are used for the purpose of risk management, they do not expose the Group to market risk because gains and losses on the
derivatives oset losses and gains on the matching asset, liability, revenues or expenses being hedged. Moreover, counterparty credit risk is
generally restricted to any hedging gain from time to time, and not the principal amount hedged. Therefore the possibility of a material loss
arising in the event of non-performance by a counterparty is considered to be unlikely.
Financial risk management policies are periodically reviewed and approved by the Board Executive Committee (“BEC”).
Annual Report FY2015/16 199