CzeCh airlines - Äeské aerolinie
CzeCh airlines - Äeské aerolinie
CzeCh airlines - Äeské aerolinie
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NOTES TO THE FINANCIAL STATEMENTS<br />
For the Year Ended 31 December 2010<br />
annual report 2010 | 74<br />
10. OTHER ASSETS<br />
As at the balance sheet date, deferred expenses primarily represent finance lease<br />
payments for Airbus A319/A320 aircraft, aircraft and other property operating lease<br />
payments.<br />
As at the balance sheet date, accrued income largely includes air coupons of other<br />
<strong>airlines</strong> when the flights were realized by the Company, for which the income will<br />
occur in the following period.<br />
The net book value of other assets transferred to the subsidiaries as non-monetary<br />
contribution during 2010 is mentioned in Note 28. The net book value of other assets<br />
transferred as part of the Company during 2010 is mentioned in Note 28.<br />
11. EQUITY<br />
Authorized and Issued Share Capital<br />
Ordinary shares in<br />
nominal value CZK 5<br />
thousand each, fully<br />
paid<br />
No. 31 December 2010<br />
CZK’000<br />
No. 31 December 2009<br />
CZK’000<br />
1,047,102 5,235,510 547,102 2,735,510<br />
As of 3 May 2010, the Government of the Czech Republic approved the capitalization<br />
of the state receivable related to the loan provided by OSINEK, a.s. “in liquidation”<br />
(Note 13).<br />
Based on the decision of the extraordinary general meeting held on 20 May 2010,<br />
the share capital of the Company was increased by the monetary contribution with<br />
subscription of 500 thousand pieces of new ordinary shares with a nominal value of<br />
CZK 5 thousand per share by the Ministry of Finance of the Czech Republic. At the<br />
same time, the offsetting agreement was signed to offset the receivable from the<br />
Ministry of Finance of the Czech Republic relating to the loan provided by OSINEK,<br />
a.s. “in liquidation” and receivable of the Company for payment of the new shares’<br />
issue price. By this agreement, CZK 2,500,000 thousand was transferred from liabilities<br />
to equity. The change was recorded in the Commercial Register on 19 July 2010.<br />
The principal shareholders exceeding 20% of the share capital are as follows:<br />
31 December 2010 – % 31 December 2009 – %<br />
Ministry of Finance of the Czech Republic 95,69 91,75<br />
Other shareholders 4,31 8,25<br />
The statutory reserve fund may not be distributed to shareholders, but may be used to<br />
offset accumulated losses. The Company is required by its Statute and the Commercial<br />
Code to transfer 5% of its annual net profits to the statutory reserve fund until the balance<br />
of this reserve reaches 20% of the issued share capital.<br />
Based on the decisions of the general meeting held on 28 June 2010, the loss in the<br />
amount of CZK 3,756,125 thousand for 2009 was transferred to Accumulated losses<br />
brought forward.<br />
Revaluation of Assets and Liabilities<br />
The Company records the fair value remeasurement of assets in equity as follows:<br />
Revaluation of assets and liabilities includes:<br />
100 100<br />
31 December 2010<br />
CZK’000<br />
31 December 2009<br />
CZK’000<br />
Commodity derivatives – swaps 73,572 (9,676)<br />
Currency derivatives – forwards 1,003 (135,576)<br />
Currency derivatives – forwards<br />
(hedging aircraft)<br />
(414,702) (462,629)<br />
Deferred tax asset / (liability) 115,497<br />
Other 4<br />
(340,127) (492,380)<br />
▶ replaced commodity derivatives with a negative impact on revaluation in the amount<br />
of CZK 0 thousand as at 31 December 2010 (as at 31 December 2009: CZK 13,738<br />
thousand); the derivatives will be recognized in the profit and loss account as an expense<br />
in the periods during which the hedged item affects the profit and loss account<br />
(fuel expenses); and<br />
▶ currency derivatives with a negative impact on revaluation in the amount of CZK<br />
414,702 thousand as at 31 December 2010 (as at 31 December 2009: CZK 462,629<br />
thousand), which were already settled and the loss is accrued to finance lease expenses<br />
over the duration of the finance lease of aircraft.