@Tot,,
Thats ryt.

The difference between men and boys is the price of their toys.

now demand at 110,300 against supply of 55,500.


'men will have to give account on the day of judgment for every careless word they have spoken' (Mat 12:36).
'set a guard over my mouth and keep watch over the door of my lips' (Ps 141:3).

Hi-Lo: Nuttal would have been in charge of scheduling & customer service (among other duties) NOT hedging. Hedging policy was approved by a Board of Directors who probably have NO idea what it entails. The details would be handled by the finance department.

Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB

@ Kizee,

IAS 39 states as follows:

'For the purpose of measuring a financial asset after initial recognition,this Standard classifies financial assets into the following four categories defined in paragraph 9:
(a) financial assets at fair value through profit or loss;
(b) held-to-maturity investments;
(c) loans and receivables; and
(d) available-for-sale financial assets.
An amendment to the Standard,issued in June 2005,permits an entity to designate a financial asset or financial liability (or a group of financial assets,financial liabilities or both) on initial recognition as one(s) to be measured at fair value,with changes in fair value recognised in profit or loss. To impose discipline on this categorisation,an entity is precluded from reclassifying financial instruments into or out of this category'

My understandiing is that the hedge is most likely a type (a) category financial asset,having said that that we need to understand the reason for the hedge.

Firstly we must understand that KQ is not a trader of fuel,The purpose for hedging is to lock in a price on a certain volume of consumption of fuel. If the hedge instrument looses value theoretically the income from the spot purchase cost of that commodity should compensate for the loss this should also be valued in the P&L. For reasons un known to me the KQ financial statements completely ignore this element of maket to market accounting as required by IAS 39.

Having said that,there is no perfect hedge and sometimes you may loose more than you gain,most large corporates manily airlines,oil companies vary or adjust their hedged instruments from time to time sometimes resulting in complete loss. This may be the reason at KQ but is not coming out clearly from their financial reporting. Only time will tell. I am hoping its weak accounting rather than a one off adjustment.

classifies financial assets into the following four categories defined in paragraph 9:
(a) financial assets at fair value through profit or loss;
(b) held-to-maturity investments;
(c) loans and receivables; and
(d) available-for-sale financial assets.
An amendment to the Standard,issued in June 2005,permits an entity to designate a
financial asset or financial liability (or a group of financial assets,financial liabilities

Raheel