Annual Report 2008-2009 - Emirates.com
Annual Report 2008-2009 - Emirates.com
Annual Report 2008-2009 - Emirates.com
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36. Capital risk management<br />
<strong>Emirates</strong> objective when managing capital is to safeguard its ability to continue as a going concern in order to provide returns for its<br />
Owner and to maintain an optimal capital structure to reduce the cost of capital.<br />
<strong>Emirates</strong> monitors the return on Owner's equity which is defined as the profit for the year expressed as a percentage of average<br />
Owner's equity. <strong>Emirates</strong> seeks to provide a better return to the Owner by borrowing and taking aircraft on operating leases to meet<br />
its growth plans. In <strong>2009</strong>, <strong>Emirates</strong> achieved a return on Owner's equity funds of 5.9% (<strong>2008</strong>: 33.8%) in <strong>com</strong>parison to an effective<br />
interest rate of 3.5% (<strong>2008</strong>: 5.2%) on borrowings.<br />
<strong>Emirates</strong> also monitors capital on the basis of a gearing ratio which is calculated as the ratio of non-current liabilities and lease<br />
liabilities, net of cash to Owner's equity. In <strong>2009</strong> this ratio was 48.6% (<strong>2008</strong>: 0.6%) and if operating leases are included, the same<br />
ratio was 138.5% (<strong>2008</strong>: 82.0%).<br />
37. Business <strong>com</strong>binations<br />
On 23 March <strong>2009</strong>, <strong>Emirates</strong> acquired 100% of the business of Hudsons Coffee through its wholly owned subsidiary <strong>Emirates</strong><br />
Leisure Retail Holding L.L.C. The principal activities of Hudsons Coffee Pty Ltd is retail sales of food and beverage products in<br />
Australia. Revenue and profit from the date of acquisition to 31 March <strong>2009</strong> is not material.<br />
Cash and cash equivalents<br />
Property, plant and equipment (Note 10)<br />
Intangible assets (Note 11)<br />
Other current assets<br />
Employee end of service benefits provision (Note 24)<br />
Current liabilities<br />
Fair value of assets acquired<br />
Goodwill (Note 11)<br />
Total purchase consideration<br />
Less: Cash and cash equivalents acquired<br />
Cash outflow on acquisition<br />
38. Comparatives<br />
Recognised<br />
on<br />
acquisition<br />
<br />
445<br />
15,867<br />
35,703<br />
1,485<br />
(4,389)<br />
49,006<br />
2,856<br />
51,862<br />
(445)<br />
51,417<br />
The following <strong>com</strong>parative figures have been reclassified to conform with the current year's presentation so that they appropriately<br />
reflect the nature of the transactions:<br />
111<br />
Acquiree's<br />
carrying<br />
amount<br />
<br />
445<br />
14,676<br />
-<br />
1,171<br />
(105) (105)<br />
(4,389)<br />
11,798<br />
<br />
of derivative financial instruments that do not qualify for hedge accounting (Note 7).
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