Icelandair Group Annual Report 2007

More documents

Recommendations

Info

94 Notes, contd.: 35. contd.: The number and weighted average exercise price of share options is as follows in thousands: Weighted average Number exercise price of options 2007 2007 Granted during the year 27.5 60,340 Forfeited during the year 27.5 (9,070 ) Outstanding at 31 December 27.5 51,270 Exercisable at 31 December 0 The fair value of services received in return for share options granted based on the fair value of share options granted, measuring using a Black-Scholes model, with the following inputs: Granted 2007 Fair value at grant date, average 12, 24, and 36 months options, average 5.85 Share price 27.5 Exercise price 27.5 Expected volatility (weighted average volatility) 29.0% Option life (expected weighted average life) 2 years Expected dividends per share ISK 1 Risk-free interest rate (based on government bonds) 11.7% Total recognised expenses for the year arising from share-based payment transactions amounted to ISK 168 million (2006: ISK 0 million) including forfeited options during the year and accrued social security expenses related to share-based payments Trade and other payables 36. Trade and other payables are specified as follows: 2007 2006 Trade payables 4,546 5,009 Derivatives used for hedging 143 409 Other payables 7,902 7,010 Total trade and other payables 12,591 12,428 Deferred income 37. Sold unused tickets and other prepayments are presented as deferred income in the balance sheet. Amounts are in ISK million
Notes, contd.: 95 Financial risk management 38. Overview The Group has exposure to the following risks from its use of financial instruments: – credit risk – liquidity risk – market risk This note presents information about the Group’s exposure to each of the above risks, the Group’s objectives, policies, and processes for measuring and managing risk, and the Group’s management of capital. Further quantitative disclosures are included throughout these consolidated financial statements. The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management framework. The Board has established the Risk Management Commitee, which is responsible for developing and monitoring the Group’s risk management policies. The committee reports regularly to the Board of Directors on its activities. The Group’s risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations. The Group Audit Committee oversees how management monitors compliance with the Group’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Group. The Group Audit Committee is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee. Credit risk Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group’s receivables from customers. Trade and other receivables The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. Credit risk is linked to both investment of liquid assets, the management of those assets and agreements with financial institutions related to financial operations, e.g. hedging. The risk involved is directly related to the fulfilment of outstanding obligations of the Group’s counterparties. The Group is aware of potential losses related to credit risk exposure and chooses its counterparties subject to business experience and satisfactory credit ratings. The Group is committed to only trade derivatives with trusted parties. The counterparty risk that arises from trading derivatives, used in risk management, is therefore minimised. The Group establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables and investments. The main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loss component established for groups of similar assets in respect of losses that have been incurred but not yet identified. The collective loss allowance is determined based on historical data of payment statistics for similar financial assets. Guarantees The Group’s policy is to provide financial guarantees only to wholly-owned subsidiaries. Amounts are in ISK million
Page 1:
Icelandair Group Annual Report 2007
Page 6 and 7:
4 2007 Calendar January February Ma
Page 8 and 9:
2007 Calendar 6 July August Septemb
Page 10 and 11:
8 Dear Shareholder The principal ai
Page 12 and 13:
10 CEO’s Comment It is both a gre
Page 15 and 16:
Another charter for today. TF-FIT d
Page 17 and 18:
15 An Extraordinary Shareholders Me
Page 20 and 21:
18 Board of Directors Gunnlaugur M.
Page 23 and 24:
Market Overview 21 The Aircraft Mar
Page 25 and 26:
Icelandair Group Fleet 23 2 Boeing
Page 27 and 28:
Financials 25 FINANCIAL INCOME AND
Page 29 and 30:
Shareholder Information 27 the tota
Page 32 and 33:
30 Risk Management Risk Management
Page 34 and 35:
32 Senior Management of Icelandair
Page 36 and 37:
34 Senior Management Hjörtur Þorg
Page 38 and 39:
36 Senior Management Árni Gunnarss
Page 40 and 41:
38 Our Roots in the Community Icela
Page 42 and 43:
40 Scheduled Airline Operations Sch
Page 44 and 45:
42 Icelandair Icelandair is the lar
Page 46 and 47: 44 and New York to Keflavik and nig
Page 48 and 49: 46 Icelandair Ground Services Inter
Page 50 and 51: 48 Global Capacity Solutions Icelan
Page 52 and 53: 50 Loftleiðir Icelandic Global Cap
Page 54 and 55: 52 Bluebird Cargo Global Capacity S
Page 56 and 57: 54 Chefs at the Hilton Reykjavik No
Page 58 and 59: 56 Air Iceland Travel & Tourism Ope
Page 60 and 61: 58 Icelandair Hotels Outlook Icelan
Page 62 and 63: 60 Iceland Travel At Iceland Travel
Page 64 and 65: 62 Endorsement & Statement by the B
Page 66 and 67: 64 Independent Auditors’ Report T
Page 68 and 69: 66 Consolidated Balance Sheet as at
Page 70 and 71: 68 Consolidated Statement of Cash F
Page 72 and 73: 70 Notes, contd.: 2e. contd.: begin
Page 74 and 75: 72 Notes, contd.: 3c. contd.: (iii)
Page 76 and 77: 74 Notes, contd.: 3. contd.: i. Imp
Page 78 and 79: 76 Notes, contd.: 3. contd.: p. Inc
Page 80 and 81: 78 Notes, contd.: 3t. contd.: •.
Page 82 and 83: 80 Notes, contd.: 5. contd.: Busine
Page 84 and 85: 82 Notes, contd.: Operating expense
Page 86 and 87: 84 Notes, contd.: 14. contd.: Aircr
Page 88 and 89: 86 Notes, contd.: 18. contd.: Trade
Page 90 and 91: 88 Notes, contd.: Long-term receiva
Page 92 and 93: 90 Notes, contd.: 28. contd.: Hedgi
Page 94 and 95: 92 Notes, contd.: 32. Contractual r
Page 98 and 99: 96 Notes, contd.: 38. contd.: Expos
Page 100 and 101: 98 Notes, contd.: 38. contd.: Expos
Page 102 and 103: 100 Notes, contd.: 38. contd.: Equi
Page 104 and 105: 102 Notes, contd.: 43. contd.: Sala
Page 106: 104 Notes, contd.: Pro forma 2007 2
show all

Icelandair Group Annual Report 2007

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?