CzeCh airlines - České aerolinie

Notes to the Consolidated Financial Statements
For the Year ended 31 December 2010
annual report 2010 | 123
9. OTHER ASSETS
As at the balance sheet date, deferred expenses primarily represent finance lease
payments for Airbus A319/A320 aircraft, aircraft and other property operating lease
payments.
As at the balance sheet date, accrued income largely includes air coupons of other
airlines when the flights were realized by the Parent Company, for which the income
will occur in the following period.
10. EQUITY
Authorized and Issued Share Capital
Ordinary shares
in nominal value
CZK 5 thousand
each, fully paid
No. 31 December 2010
CZK’000
No. 31 December 2009
CZK’000
1,047,102 5,235,510 547,102 2,735,510
As of 3 May 2010, the Government of the Czech Republic approved the capitalization
of the state receivable related to the loan provided by OSINEK, a.s. “in liquidation”
(Note 12).
Based on the decision of the extraordinary General Meeting held on 20 May 2010,
the share capital of the Parent Company was increased by the monetary contribution
with a subscription of 500 thousand pieces of new ordinary shares with a nominal
value of CZK 5 thousand per share by the Ministry of Finance of the Czech Republic.
At the same time, the offsetting agreement was signed to offset the receivable
from the Ministry of Finance of the Czech Republic relating to the loan provided by
OSINEK, a.s. “in liquidation” and receivable of the Company for payment of the new
shares’ issue price. By this agreement, CZK 2,500,000 thousand was transferred
from liabilities to equity. The change was recorded in the Commercial Register on 19
July 2010.
The principal shareholders exceeding 20% of the share capital are as follows:
Based on the decision of the Parent Company General Meeting, held on 28 June
2010, the loss in the amount of CZK 3,756,125 thousand for 2009 was transferred to
Accumulated Losses Brought Forward.
Revaluation of Assets and Liabilities
The Group records the fair value remeasurement of assets in equity as follows:
Revaluation of assets and liabilities includes:
31 December 2010 % 31 December 2009 %
Ministry of Finance
of the Czech Republic
95.69 91.75
Other shareholders 4.31 8.25
31 December 2010
CZK’000
100 100
31 December 2009
CZK’000
Commodity derivatives – swaps 73,572 4,062
Replaced commodity derivatives – swaps (13,738)
Currency derivatives – forwards 1,003 (135,576)
Currency derivatives – forwards
(hedging aircraft)
(414,702) (462,629)
Deferred tax asset / (liability) 115,497
Other 4
(340,127) (492,380)
▶ replaced commodity derivatives with a negative impact on revaluation in the
amount of CZK 0 thousand as at 31 December 2010 (as at 31 December 2009: CZK
13,738 thousand); the derivatives will be recognized in the profit and loss account as
an expense in the periods during which the hedged item affects the profit and loss
account (fuel expenses); and
▶ currency derivatives with a negative impact on revaluation in the amount of CZK
414,702 thousand as at 31 December 2010 (as at 31 December 2009: CZK 462,629
thousand), which were already settled and the loss is accrued to finance lease
expenses over the duration of the finance lease of aircraft.