I need to do this work.

Income statement: determine gross profit, income from operations, and net income for the last two years. Comment on the increases or decreases in these amounts.

Balance sheet: show that assets = liability + stockholders equity for the past two years.

Statement of cash flows: indicate whether the companys cash flows from operations for the past two years are more or less than net income. Also indicate whether the company is expanding through investing activities. Identify the companys most important source of financing. Overall, has cash increased or decreased for the past two years?

PUBLIC JOINT STOCK COMPANY AEROFLOT - RUSSIAN AIRLINES IFRS Consolidated Financial Statements for the year ended 31 December 2015 Contents Statement of Management's Responsibilities for the Preparation and Approval of the Consolidated Financial Statements for 2015 Auditors' Report Consolidated Statement of Profit or Loss ......................................................................................................1 Consolidated Statement of Comprehensive Income ......................................................................................2 Consolidated Statement of Financial Position ...............................................................................................3 Consolidated Statement of Cash Flows ..........................................................................................................4 Consolidated Statement of Changes in Equity ...............................................................................................6 Notes to the Consolidated Financial Statements 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. Nature of the business .......................................................................................................................... 7 Basis of preparation and summary of significant accounting policies ............................................... 10 Critical accounting estimates and judgements in applying accounting policies ................................ 29 Adoption of new or revised standards and interpretations ................................................................. 30 Traffic revenue ................................................................................................................................... 32 Other revenue ..................................................................................................................................... 32 Operating costs less staff costs and depreciation and amortisation ................................................... 33 Staff costs ........................................................................................................................................... 33 Other operating income and expenses, net......................................................................................... 34 Finance income and costs .................................................................................................................. 34 Income tax.......................................................................................................................................... 35 Cash and cash equivalents ................................................................................................................. 37 Aircraft lease security deposits .......................................................................................................... 38 Accounts receivable and prepayments ............................................................................................... 39 Expendable spare parts and inventories ............................................................................................. 40 Financial investments......................................................................................................................... 40 Other non-current assets .................................................................................................................... 41 Prepayments for aircraft ..................................................................................................................... 41 Property, plant and equipment ........................................................................................................... 42 Assets classified as held for sale ........................................................................................................ 43 Intangible assets ................................................................................................................................. 43 Goodwill ............................................................................................................................................ 44 Derivative financial instruments ........................................................................................................ 45 Accounts payable and accrued liabilities ........................................................................................... 48 Deferred revenue and other liabilities related to frequent flyer programme ...................................... 48 Provisions for liabilities ..................................................................................................................... 49 Finance lease liabilities ...................................................................................................................... 50 Loans and borrowings ........................................................................................................................ 51 Other non-current liabilities ............................................................................................................... 53 Non-controlling interest ..................................................................................................................... 53 Share capital ....................................................................................................................................... 54 Dividends ........................................................................................................................................... 55 Operating segments ............................................................................................................................ 55 Presentation of financial instruments by measurement category ....................................................... 58 Risks connected with financial instruments ....................................................................................... 60 Fair value of financial instruments..................................................................................................... 65 Related parties transactions................................................................................................................ 66 Commitments under operating leases ................................................................................................ 69 Capital commitments ......................................................................................................................... 69 Contingencies..................................................................................................................................... 70 Independent Auditor's Report To the Shareholders and Board of Directors of PJSC Aeroflot We have audited the accompanying consolidated financial statements of PJSC Aeroflot and its subsidiaries (the \"Group\"), which comprise the consolidated statement of financial position as at 31 December 2015 and the consolidated statements of profit or loss, comprehensive income, changes in equity and cash flows for 2015, and notes comprising a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on the fair presentation of these consolidated financial statements based on our audit. We conducted our audit in accordance with Russian Federal Auditing Standards and International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to express an opinion on the fair presentation of these consolidated financial statements. AO PricewaterhouseCoopers Audit, 10 Butyrsky Val, Moscow, Russian Federation, 125047 T: +7 495 967 6000, F: +7 495 967 6001, www.pwc.ru (i) PJSC AEROFLOT Consolidated Statement of Comprehensive Income for the year ended 31 December 2015 (All amounts in millions of Russian Roubles, unless otherwise stated) Note 2015 2014 (6,494) (17,146) - 33 12,810 (32,911) 4,038 (16,063) (16,793) (43,596) 12,115 (48,241) TOTAL COMPREHENSIVE LOSS FOR THE YEAR (22,557) (65,387) Total comprehensive loss attributable to: Shareholders of the Company Non-controlling interest TOTAL COMPREHENSIVE LOSS FOR THE YEAR (21,892) (665) (22,557) (63,712) (1,675) (65,387) Loss for the year Other comprehensive (loss)/profit: Items that may be reclassified subsequently to profit or loss: Translation from the functional currency to the presentation currency Gain/(loss) from the change in fair value of hedging derivative financial instruments Effect from hedging revenue with foreign currency liabilities Deferred tax related to the loss on cash flow hedging instruments Other comprehensive loss for the year 23 11 The consolidated statement of comprehensive income should be read in conjunction with the notes set out on pages 7 to 72 which are forming part of the consolidated financial statements 2 PJSC AEROFLOT Consolidated Statement of Financial Position as at 31 December 2015 (All amounts in millions of Russian Roubles, unless otherwise stated) 31 December 2015 31 December 2014 30,693 5,917 76,317 2,489 2,658 7,447 53 7,732 133,306 26,547 961 56,769 668 321 6,516 431 92,213 21,632 109 6,118 2,132 2,762 35,291 104,494 2,690 6,660 181,888 315,194 18,540 140 6,115 2,110 3,759 29,241 116,044 2,762 6,660 134 185,505 277,718 4,853 54,751 28,691 1,307 7,519 19,504 54,085 7,371 178,081 26,312 48,952 22,469 799 2,349 16,912 17,343 135,136 28 27 26 11 25 23 29 14,375 145,020 6,917 170 2,941 3,810 173,233 351,314 6,860 132,366 4,845 133 2,560 4,839 4,484 156,087 291,223 31 1,359 (3,571) 1,659 (5) (64,720) 39,755 (25,523) (10,597) (36,120) 315,194 1,359 (3,571) 1,659 (5) (48,657) 45,584 (3,631) (9,874) (13,505) 277,718 Note ASSETS Current assets Cash and cash equivalents Short-term financial investments Accounts receivable and prepayments Current income tax prepayment Aircraft lease security deposits Expendable spare parts and inventories Derivative financial instruments Assets classified as held for sale Total current assets Non-current assets Deferred tax assets Investments in associates Long-term financial investments Aircraft lease security deposits Other non-current assets Prepayments for aircraft Property, plant and equipment Intangible assets Goodwill Derivative financial instruments Total non-current assets TOTAL ASSETS 12 16 14 13 15 23 20 11 16 13 17 18 19 21 22 23 LIABILITIES AND EQUITY Current liabilities Derivative financial instruments Accounts payable and accrued liabilities Unearned traffic revenue Deferred revenue related to frequent flyer programme Provisions for liabilities Finance lease liabilities Short-term borrowings and current portion of long-term loans and borrowings Liabilities related to assets held for sale Total current liabilities Non-current liabilities Long-term loans and borrowings Finance lease liabilities Provisions Deferred tax liabilities Deferred revenue related to frequent flyer programme Derivative financial instruments Other non-current liabilities Total non-current liabilities TOTAL LIABILITIES Equity Share capital Treasury shares reserve Accumulated profit on disposal of treasury shares Investment revaluation reserve Hedging reserve Retained earnings Equity attributable to shareholders of the Company Non-controlling interest TOTAL EQUITY TOTAL LIABILITIES AND EQUITY 23 24 25 26 27 28 20 23, 27 The consolidated statement of financial position should be read in conjunction with the notes set out on pages 7 to 72 which are forming part of the consolidated financial statements 3 PJSC AEROFLOT Consolidated Statement of Cash Flows for the year ended 31 December 2015 (All amounts in millions of Russian Roubles, unless otherwise stated) Note Cash flows from operating activities: Loss before income tax Adjustments for: Depreciation and amortisation Charge of impairment provision for doubtful accounts receivable Loss on doubtful accounts write-off Change in impairment provision for obsolete expendable spare parts and inventory Charge of provision for impairment of property, plant and equipment Loss/(gain) on disposal of property, plant and equipment Gain on accounts payable write-off Share of financial results of associates Loss/(gain) on sale and impairment of investments and loans issued (Gain)/loss from change in the fair value of derivative financial instruments Hedging result Change in provisions for liabilities Interest expense Foreign exchange loss Write-off of VAT recoverable Gain on recovery of VAT Change in other provisions and other assets impairments Other operating (income)/expenses, net Other finance income, net Loss on derivative financial instruments, net Dividend income Total operating cash flows before working capital changes 19, 21 9 9 19 9 10 10 10 26 10 10 9 9 10 Change in accounts receivable and prepayments Change in expendable spare parts and inventories Change in accounts payable and accrued liabilities Total operating cash flows after working capital changes Restricted cash Income taxes paid Income tax refunded Net cash flows from operating activities 12 2015 2014 (1,560) (16,352) 13,306 6,106 589 12,136 3,103 33 276 400 272 (164) 17 9,159 242 34 (1,907) (384) (31) (1) (11,885) 23,746 4,264 7,737 849 90 (8,021) (17) (573) (36) 19,803 (89) 64,269 9,869 1,723 1,271 4,934 14,795 (285) (46) 165 (449) 2,813 (60) 31,603 (2,251) (1,216) 14,705 75,507 4,658 (1,831) 8,452 42,882 18 (6,041) 180 69,664 (82) (6,863) 40 35,977 The consolidated statement of cash flows should be read in conjunction with the notes set out on pages 7 to 72 which are forming part of the consolidated financial statements 4 PJSC AEROFLOT Consolidated Statement of Cash Flows for the year ended 31 December 2015 (All amounts in millions of Russian Roubles, unless otherwise stated) Note Cash flows from investing activities: Deposits return Proceeds from sale of investments Deposits placement Purchases of investments and issue of loans Proceeds from sale of property, plant and equipment Purchases of property, plant and equipment and intangible assets Dividends received Prepayments for aircraft Return of prepayments for aircraft Payment of operating lease security deposits Return of operating lease security deposits Net cash flows used in investing activities Cash flows from financing activities: Proceeds from loans and borrowings Repayment of loans and borrowings Repayment of the principal element of finance lease liabilities Interest paid Proceeds from disposal of treasury shares Proceeds from sale of treasury shares to non-controlling shareholders Dividends paid Payments on settlement of derivative financial instruments, net Net cash used in financing activities Effect of exchange rate fluctuations on cash and cash equivalents Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year Non-cash transactions as part of the investing activities: Property, plant and equipment acquired under finance leases 2015 2014 6,375 30 (11,741) (8,652) 603 (9,196) 74 (22,708) 7,828 (1,995) 612 (38,770) 1,869 (2,486) (66) 126 (6,160) 70 (21,361) 9,620 (304) 200 (18,492) 73,331 (36,267) (19,455) (5,914) - 18,398 (9,870) (15,629) (3,409) 2 (88) (39,682) 119 (2,833) (1,451) (28,075) (14,673) 1,327 4,146 5,075 7,887 26,547 30,693 18,660 26,547 1,781 34,472 The consolidated statement of cash flows should be read in conjunction with the notes set out on pages 7 to 72 which are forming part of the consolidated financial statements 5 PJSC AEROFLOT Consolidated Statement of Changes in Equity for the year ended 31 December 2015 (All amounts in millions of Russian Roubles, unless otherwise stated) Note 1 January 2014 Loss for the year Translation from the functional currency to the presentation currency Loss from the change in fair value of derivative financial instruments net of related deferred tax Total other comprehensive loss Total comprehensive loss Disposal of treasury shares Sale of shares to non-controlling shareholders Dividends declared 31 December 2014 1 January 2015 Loss for the year Loss from the change in fair value of derivative financial instruments net of related deferred tax Total other comprehensive loss Total comprehensive loss Dividends declared 31 December 2015 Share capital Equity attributable to shareholders of the Company Accumulated result on Accumulated Investment disposal of treasury currency Hedging revaluation shares less treasury translation reserve reserve reserve shares reserve Retained earnings Total Non-controlling interest Total equity 1,359 - (1,914) - (10) - (28) - (383) - 61,122 (15,471) 60,146 (15,471) (5,666) (1,675) 54,480 (17,146) - - 5 28 - - 33 - 33 - 2 - - (48,274) - - (48,274) (48,241) (63,712) 2 (1,675) - (48,274) (48,241) (65,387) 2 1,359 (1,912) (5) - (48,657) 2,585 (2,652) 45,584 2,585 (2,652) (3,631) (2,283) (250) (9,874) 302 (2,902) (13,505) 1,359 (1,912) (5) - (48,657) 1,359 (1,912) (5) - (16,063) (64,720) 45,584 (3,631) (9,874) (13,505) (5,829) (5,829) (665) (6,494) 39,755 (16,063) (16,063) (21,892) (25,523) (665) (58) (10,597) (16,063) (16,063) (22,557) (58) (36,120) The consolidated statement of changes in equity should be read in conjunction with the notes set out on pages 7 to 72 which are forming part of the consolidated financial statements 6 PJSC AEROFLOT Notes to the Consolidated Financial Statements for the year ended 31 December 2015 (All amounts in millions of Russian Roubles, unless otherwise stated) 1. NATURE OF THE BUSINESS Company Aeroflot - Russian Airlines (the \"Company\" or \"Aeroflot\") was formed as an opened joint stock company following the Russian Government decree in 1992 (hereinafter - the "1992 decree"). The 1992 decree conferred all the rights and obligations of Aeroflot - Soviet Airlines and its structural units upon the Company, including inter-governmental bilateral agreements and agreements signed with foreign airlines and enterprises in the field of civil aviation. Following the Decree of the Russian President No. 1009 dated 4 August 2004, the Company was included in the List of Strategic Entities and Strategic Joint Stock Companies. Beginning 1 July 2015 Open Joint Stock Company Aeroflot - Russian Airlines changed official title to Public Joint Stock Company Aeroflot - Russian Airlines (PJSC Aeroflot) due to legislation changes. The principal activities of the Company are the provision of passenger and cargo air transportation services, both domestically and internationally, and other aviation-related services from Moscow Sheremetyevo Airport. The Company and its subsidiaries (the \"Group\") also conduct activities comprising airline catering and hotel operations. Associated entities mainly comprise aviation security services and other ancillary services. As at 31 December 2015 and 2014, the Government of the Russian Federation (the \"RF\") represented by the Federal Agency for Management of State Property owned 51.17% of the Company. The Company's headquarters are located in Moscow at 10 Arbat Street, 119002, RF. The principal subsidiaries are: Company name JSC Donavia (\"Donavia\") JSC Rossiya airlines (\"AK Rossiya\") OJSC Vladivostok Avia (\"Vladavia\") JSC Aurora Airlines (\"AK Aurora\") JSC Orenburg airlines (\"Orenburgavia\") Registered address Principal activity Rostov-on-Don, RF Airline 100.00% 100.00% St. Petersburg, RF Airline 75% minus one share 75% minus one share Primorsk Region, RF Airline 26.60% 26.60% Yuzhno-Sakhalinsk, RF Airline 51.00% 51.00% Airline 100.00% 100.00% 100.00% 100.00% - 100.00% Orenburg, RF 31 December 2015 31 December 2014 CJSC Aeroflot-Cargo Moscow, RF LLC Dobrolet (\"Dobrolet\") LLC Pobeda Airlines (\"Pobeda\") LLC Aeroflot-Finance (\"Aeroflot-Finance\") CJSC Aeromar CJSC Sherotel Moscow, RF Cargo transportation services Airline Moscow, RF Airline 100.00% 100.00% Moscow, RF Finance services 100.00% 100.00% Moscow Region, RF Moscow Region, RF Catering Hotel Technical maintenance 51.00% 100.00% 51.00% 100.00% 100.00% - LLC A-Technics Moscow, RF 7 PJSC AEROFLOT Notes to the Consolidated Financial Statements for the year ended 31 December 2015 (All amounts in millions of Russian Roubles, unless otherwise stated) 1. NATURE OF THE BUSINESS (CONTINUED) On 16 September 2014 the Company registered legal entity LLC Low Cost Carrier, which was renamed to LLC Pobeda Airlines on 9 December 2014. On 7 December 2015 LLC Aeroflot-Finance registered a new subsidiary LLC A-Technics in order to operate technical maintenance of the Group's aircraft fleet. The Group's major associate is: Company name CJSC AeroMASH-AB (\"AeroMASH-AB\") Registered address Moscow Region, RF 8 Principal activity Aviation security 31 December 2015 31 December 2014 45.00% 45.00% PJSC AEROFLOT Notes to the Consolidated Financial Statements for the year ended 31 December 2015 (All amounts in millions of Russian Roubles, unless otherwise stated) 1. NATURE OF THE BUSINESS (CONTINUED) The table below provides information on the Group's aircraft fleet as at 31 December 2015 (number of items): TYPE OF AIRCRAFT OWNERSHIP AEROFLOT DONAVIA AK ROSSIYA ORENBURGAVIA AK AURORA POBEDA GROUP TOTAL An-24 DHC 8-Q300 DHC 8-Q402 Total owned Owned Owned Owned 3 3 - - - 1 1 2 - 1 1 3 5 Airbus A319 Airbus A320 Airbus A321 Airbus A330 Boeing B777 An-148 Total finance lease Finance lease Finance lease Finance lease Finance lease Finance lease Finance lease 2 1 21 8 10 42 - 9 6 15 - - - 11 1 21 8 10 6 57 SSJ 100 Airbus A319 Airbus A320 Airbus A321 Airbus A330 Boeing B737 Boeing B767 Boeing B777 DHC 8-Q300 DHC 8-Q200 DHC 6-400 Total operating lease Total fleet Operating lease Operating lease Operating lease Operating lease Operating lease Operating lease Operating lease Operating lease Operating lease Operating lease Operating lease 24 3 62 5 14 14 3 125 170 10 10 10 7 7 1 15 30 16 3 19 19 9 3 3 2 2 19 21 12 12 12 24 29 69 5 14 45 1 6 3 2 2 200 262 As at 31 December 2015: 1 aircraft of type Boeing B737 and 1 aircraft of type Boeing B767 were not operating, 6 aircraft of type An-148 were under redelivery maintenance, 3 aircraft of type DHC 8-Q402 were under pre-operating maintenance. 9 PJSC AEROFLOT Notes to the Consolidated Financial Statements for the year ended 31 December 2015 (All amounts in millions of Russian Roubles, unless otherwise stated) 2. BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (\"IFRS\") and in accordance with the Federal Law No. 208 - FZ \"On consolidated financial reporting\" dated 23 July 2010. The consolidated financial statements are presented in millions of Russian Roubles (\"RUB million\"), except where specifically noted otherwise. These consolidated financial statements have been prepared on the historical cost convention except for financial instruments which are initially recognised at fair value, financial assets available for sale and financial instruments measured at fair value through profit or loss, as well as derivative financial instruments to which specific hedge accounting rules are applicable. The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the periods presented in these consolidated financial statements, unless otherwise stated. All significant subsidiaries directly or indirectly controlled by the Group are included in these consolidated financial statements. A list of the Group's principal subsidiaries is set out in Note 1. Going concern Management prepared these consolidated financial statements on a going concern basis. In making this judgement management considered the Group's financial position, current intentions, profitability of operations and access to financial resources, and analysed the impact of the situation in the financial markets on the operations of the Group. Functional and presentation currency The functional currency of each of the Group's consolidated entities is the currency of the primary economic environment in which the entity operates. Since 1 January 2007, the functional currency of the Company and its subsidiaries is the Russian Rouble (\"RUB\" or \"rouble\"). Since 1 January 2013 the presentation currency of the Group's consolidated financial statements is the Russian Rouble as well. Consolidation Subsidiaries represent investees, including structured entities, which the Group controls, as the Group: (i) has the powers to control significant operations which has a considerable impact on the investee's income, (ii) runs the risks related to variable income from its involvement with investee or is entitled to such income, and (iii) is able to use its powers with regard to the investee in order to influence the amount of its income. The existence and effect of substantive rights, including substantive potential voting rights, are considered when assessing whether the Group has power over another entity. For a right to be substantive, the holder must have practical ability to exercise that right when decisions about the direction of the relevant activities of the investee need to be made. The Group may have power over an investee even when it holds less than majority of voting power in an investee. In such a case, the 10 PJSC AEROFLOT Notes to the Consolidated Financial Statements for the year ended 31 December 2015 (All amounts in millions of Russian Roubles, unless otherwise stated) 2. BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Consolidation (continued) Group assesses the size of its voting rights relative to the size and dispersion of holdings of the other vote holders to determine if it has de-facto power over the investee. Protective rights of other investors, such as those that relate to fundamental changes of investee's activities or apply only in exceptional circumstances, do not prevent the Group from controlling an investee. Subsidiaries are consolidated from the date on which control is transferred to the Group (acquisition date) and are deconsolidated from the date on which control ceases. Subsidiaries are included in the consolidated financial statements at the acquisition method. Identifiable assets acquired and liabilities and contingent liabilities received in a business combination are measured at their fair values at the acquisition date, irrespective of the extent of any non-controlling interest. Goodwill is measured through the deduction of net assets of the acquired entity from the total of the following amounts: consideration transferred for the acquired entity, non-controlling share in the acquiree and fair value of the existing equity interest in the acquiree held immediately by the Group before the acquisition date. Any negative amount (\"negative goodwill\") is recognised in profit or loss, after management reassesses whether it identified all the assets acquired and all liabilities and contingent liabilities assumed and reviews appropriateness of their measurement. The consideration transferred for the acquiree is measured at the fair value of the assets given up, equity instruments issued and liabilities incurred or assumed, including fair value of assets or liabilities from contingent consideration arrangements but excludes acquisition related costs such as advisory, legal, valuation and similar professional services. Transaction costs related to the acquisition and incurred for issuing equity instruments are deducted from equity; transaction costs incurred for issuing debt as part of the business combination are deducted from the carrying amount of the debt and all other transaction costs associated with the acquisition are expensed. The Group measures non-controlling interest that represents the ownership interest and entitles the holder to a proportionate share of net assets in the event of liquidation on a transaction by transaction basis, either at: ) fair value, or b) in proportion to the non-controlling share in the net assets of the acquiree. Intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated, unless the cost cannot be recovered. The Company and its subsidiaries use uniform accounting policies consistent with the Group's policies. Non-controlling interest is that part of the net results and of the equity of a subsidiary attributable to interests which are not owned, directly or indirectly, by the Company. Non-controlling interest forms a separate component of the Group's equity. 11 PJSC AEROFLOT Notes to the Consolidated Financial Statements for the year ended 31 December 2015 (All amounts in millions of Russian Roubles, unless otherwise stated) 2. BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Purchases of non-controlling interests The Group applies the economic entity model to account for transactions with owners of noncontrolling interest. Any difference between the purchase consideration and the carrying amount of non-controlling interest acquired is recorded as a capital transaction directly in equity. The Group recognises the difference between sales consideration and carrying amount of non-controlling interest sold as a capital transaction in the consolidated statement of changes in equity. Investments in associates Associates are entities over which the Group has significant influence (directly or indirectly), but not control, generally accompanying a shareholding of between 20 and 50 percent of the voting rights. Investments in associates are accounted for using the equity method of accounting and are initially recognised at cost. The carrying amount of associates includes goodwill identified on acquisition less accumulated impairment losses, if any. Dividends received from associates reduce the carrying value of the investment in associates. Other post-acquisition changes in the Group's share of net assets of an associate are recognised as follows: (i) the Group's share of profits or losses of associates is included in the consolidated statement of profit or loss for the year as a share of financial results of equity accounted investments, (ii) the Group's share in other comprehensive income is recorded as a separate line item in other comprehensive income, (iii) all other changes in the Group's share of the carrying value of net assets of the associates are recorded in the consolidated statement of profit or loss within the share of financial results of equity accounted investments. However, when the Group's share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate. Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group's interest in the associates; unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the associate's assets. Disposals of subsidiaries or associates When the Group ceases to have control or significant influence, any retained interest in the entity is remeasured to its fair value, with the change in carrying amount recognised in profit or loss. The fair value is the initial carrying amount for the purposes of subsequent accounting for the retained interest in an associate or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity, are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are recycled to profit or loss. If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income is reclassified to profit or loss where appropriate. 12 PJSC AEROFLOT Notes to the Consolidated Financial Statements for the year ended 31 December 2015 (All amounts in millions of Russian Roubles, unless otherwise stated) 2. BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Goodwill Goodwill is carried at cost less accumulated impairment losses, if any. The Group performs goodwill impairment testing at least on an annual basis and whenever there are indications that goodwill may be impaired. The carrying value of goodwill is compared to the recoverable amount, which is the higher of value in use and the fair value less costs of disposal. Any impairment is recognised immediately as an expense and is not subsequently reversed. Goodwill is allocated to the cash generating units (namely, the Group's subsidiaries or business units). These units represent the lowest level at which the Group monitors goodwill and are not larger than an operating segment. Gains or losses on disposal of an operation within a cash generating unit to which goodwill has been allocated include the carrying amount of goodwill associated with the disposed operation, generally measured on the basis of the relative values of the disposed operation and the portion of the cashgenerating unit which is retained. Foreign currency translation Monetary assets and liabilities denominated in foreign currency are translated into each entity's functional currency at the official exchange rate of the Central Bank of the Russian Federation (\"CBRF\") at the respective end of the reporting period. Transactions in foreign currencies are recorded at the rates of exchange prevailing on the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of transactions in foreign currency and from the translation of monetary assets and liabilities denominated in foreign currency into each entity's functional currency at year-end official exchange rates of the CBRF are recognised in the consolidated statement of profit or loss for the year within finance income or costs except for foreign exchange differences arising on translation of hedge financial instruments. Foreign exchange differences on hedge instruments are recognised in other comprehensive income. Translation at year-end rates does not apply to non-monetary items in the consolidated statement of financial position that are measured at historical cost. Non-monetary items measured at fair value in a foreign currency, including equity investments, are translated using the exchange rates at the date when the fair value was determined. Effects of exchange rate changes on non-monetary items measured at fair value in a foreign currency are recorded as part of the fair value gain or loss. The table below presents official US Dollar and Euro to rouble exchange rates used for the translation: Average rate for 2015 31 December 2015 Average rate for 2014 31 December 2014 Official exchange rates Roubles for 1 US Dollar Roubles for 1 Euro 60.96 67.78 72.88 79.70 38.42 50.82 56.26 68.34 At 29 February 2016 the official exchange rates of US Dollar and Euro to rouble were 75.09 roubles for 1 US Dollar and 82.97 roubles for 1 Euro, respectively. 13 PJSC AEROFLOT Notes to the Consolidated Financial Statements for the year ended 31 December 2015 (All amounts in millions of Russian Roubles, unless otherwise stated) 2. BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Revenue recognition Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of sales related taxes. Passenger revenue: Ticket sales are reported as traffic revenue when the transportation service has been provided. The value of tickets sold and still valid but not used by the reporting date is reported in the Group's consolidated statement of financial position in a separate line item (unearned traffic revenue) within current liabilities. This item is reduced either when the Group completes the transportation service or when the passenger requests a refund. Sales representing the value of tickets that have been issued, but which will never be used, are recognised as traffic revenue at the reporting date based on an analysis of historical patterns of actual income from unused tickets. Commissions, which are payable to the sales agents are recognised as sales and marketing expenses within operating costs in the consolidated statement of profit or loss in the period of ticket sale by agents. Passenger revenue includes revenue from code-share agreements with certain other airlines as per which the Group and other airlines sell seats for each other's flights (\"code-share agreements\"). Revenue from the sale of code-share seats on other airlines is recorded at the moment of the transportation service provision and is accounted for net in Group's passenger revenue in the consolidated statement of profit or loss. Revenue from the sale of code-share seats on Group's flights by other airlines are recorded at the moment of the transportation service provision and is fully accounted for in the Group's traffic revenue in the consolidated statement of profit or loss. Cargo revenue: The Group's cargo transport services are recognised as revenue when the air transportation is provided. The value of cargo transport services sold but not yet provided is reported in the Group's consolidated statement of financial position in a separate line item (unearned traffic revenue) within current liabilities. Catering: Revenue is recognised when meal packages are delivered to the aircraft, as this is the date when the risks and rewards of ownership are transferred to customers. Other revenue: Revenue from bilateral airline agreements is recognised when earned with reference to the terms of each agreement. Hotel accommodation revenue is recognised when the services are provided. Revenues from sales of goods are recognised at the point of transfer of risks and rewards of ownership of the goods, normally when the goods are shipped to the customer. If the Group agrees to transport goods to a specified location, revenue is recognised when the goods are passed to the customer at the destination point. Revenues from sale of services are recognised in the period in which the services were rendered. Segment information The Group determines and presents operating segments based on the information that internally is provided to the General Director of the Group, who is the Group's chief operating decision maker. Segments whose revenue, financial result or assets are not less than ten percent or more of all the segments are reported separately. 14 PJSC AEROFLOT Notes to the Consolidated Financial Statements for the year ended 31 December 2015 (All amounts in millions of Russian Roubles, unless otherwise stated) 2. BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Intangible assets The Group's intangible assets other than goodwill have definite useful lives and primarily include capitalised computer software with the useful life of 5 years. Intangible assets are amortised using the straight-line method over their useful lives. Acquired licenses for computer software are capitalised on the basis of the costs incurred to acquire and bring them to use. If impaired, the carrying amount of intangible assets is written down to the higher of value in use and fair value less costs to sell. Property, plant and equipment Property, plant and equipment are reported at cost, less accumulated depreciation and impairment losses (where appropriate). Depreciation is calculated in order to allocate the cost (less estimated residual value where applicable) over the remaining useful lives of the assets. (a) Fleet (i) Owned aircraft and engines: Owned fleet consists of foreign-made aircraft, engines are both Russian and foreign-made. The full list of aircraft is presented in Note 1. (ii) Finance leased aircraft and engines: Where assets are financed through finance leases, under which substantially all the risks and rewards of ownership are transferred to the Group, the assets are treated as if they had been purchased outright. (iii) Capitalised costs on regular maintenance works and repairs of aircraft operated under finance lease: Expenditure incurred on modernisation and improvements projects that are significant in size (mainly aircraft modifications involving installation of replacement parts) are capitalised. The carrying amount of those parts that are replaced is derecognised from the Group's consolidated statement of financial position and included in operating costs in the Group's consolidated statement of profit or loss. Capitalised costs of aircraft checks and major modernisation and improvements projects are depreciated on a straight-line basis to the projected date of the next check or based on estimates of their useful lives. Ordinary repair and maintenance costs of aircraft are expensed as incurred and included in operating costs (aircraft maintenance) in the Group's consolidated statement of profit or loss. (iv) Depreciation of fleet: The Group depreciates fleet assets owned or held under finance leases on a straight-line basis to the end of their estimated useful life or lease term, if it is shorter. The airframe, engines and interior of aircraft are depreciated separately over their respective estimated useful lives. The Group's fleet assets have the following useful lives: Airframes of aircraft Engines Interiors Buildings Facilities and transport vehicles Other non-current assets (v) 20-32 years 8-10 years 5 years 15-50 years 3-5 years 1-5 years Capitalised leasehold improvements: Capitalised costs that relate to the rented fleet are depreciated over the shorter of: their useful lives and the lease term. 15 PJSC AEROFLOT Notes to the Consolidated Financial Statements for the year ended 31 December 2015 (All amounts in millions of Russian Roubles, unless otherwise stated) 2. BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Property, plant and equipment (continued) (b) Land, buildings and other plant and equipment Property, plant and equipment is stated at the historical US Dollar cost recalculated at the exchange rate on 1 January 2007, the date of the change of the functional currency of the Company and its major subsidiaries from the US Dollar to the Russian Rouble. Depreciation is accrued based on the straight-line method on all property, plant and equipment based upon their expected useful lives or, in the case of leasehold properties, over the duration of the leases or useful life if it is shorter. The useful lives of the Group's property, plant and equipment range from 1 to 50 years. Land is not depreciated. (c) Construction in progress Construction in progress represents costs related to construction of property, plant and equipment, including corresponding variable out-of-pocket expenses directly attributable to the cost of construction, as well the acquisition cost of other assets that require assembly or any other preparation. The carrying value of construction in progress is regularly analysed for the potential accrual of the impairment provision. Gain or loss on disposal of property, plant and equipment The gain or loss arising on the disposal of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the Group's consolidated statement of profit or loss within operating costs. Finance lease Where the Group is a lessee in a lease which transferred substantially all the risks and rewards incidental to ownership to the Group, the assets leased are capitalised in property, plant and equipment at the commencement of the lease at the lower of: the fair value of the leased assets and the present value of the minimum lease payments. Each lease payment is allocated between the outstanding liability and finance charges so as to achieve a constant rate on the finance balance outstanding. Corresponding lease liabilities net of future interest expenses are recorded as a separate line item (finance lease liabilities) within current and non-current liabilities in the Group's consolidated statement of financial position. Interest expenses within lease payments are charged to profit or loss over the lease terms using the effective interest method. The assets acquired under finance leases are depreciated over their useful life or the shorter lease term, if the Group is not reasonably certain that it will obtain ownership by the end of the lease term. Customs duties, legal fees and other initial direct costs increase the total amount recorded in assets in the Group's consolidated statement of financial position. The interest component of lease payments included in financial costs in the Group's consolidated statement of profit or loss. 16 PJSC AEROFLOT Notes to the Consolidated Financial Statements for the year ended 31 December 2015 (All amounts in millions of Russian Roubles, unless otherwise stated) 2. BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Non-current assets classified as held for sale Non-current assets and disposal groups (which may include both non-current and current assets) are classified in the consolidated statement of financial position as 'non-current assets held for sale' if their carrying amount will be recovered principally through a sale transaction (including loss of control of a subsidiary holding the assets) within twelve months after the reporting period. Assets are reclassified when all of the following conditions are met: (a) the assets are available for immediate sale in their present condition; (b) the Group's management approved and initiated an active programme to locate a buyer; (c) the assets are actively marketed for sale at a reasonable price; (d) the sale is expected within one year; and (e) it is unlikely that significant changes to the plan to sell will be made or that the plan will be withdrawn. Non-current assets or disposal groups classified as held for sale in the current period's consolidated statement of financial position are not reclassified or re-presented in the comparative consolidated statement of financial position to reflect the classification at the end of the current period. A disposal group is a group of assets (current or non-current) to be disposed of, by sale or otherwise, together as a group in a single transaction, and liabilities directly associated with those assets that will be transferred in the transaction. Goodwill is included if the disposal group includes an operation within a cash-generating unit to which goodwill has been allocated on acquisition. Non-current assets are assets that include amounts expected to be recovered or collected more than twelve months after the reporting period. If reclassification is required, both the current and non-current portions of an asset are reclassified. Held for sale disposal groups as a whole are measured at the lower of their carrying amount and fair value less costs to sell. Held for sale property, plant and equipment are not depreciated or amortised. Liabilities directly associated with the disposal group that will be transferred in the disposal transaction are reclassified and presented separately in the consolidated statement of financial position. Capitalisation of borrowing costs Borrowing costs including interest accrued, foreign exchange difference and other costs directly attributable to the acquisition, construction or production of assets that are not carried at fair value and that necessarily take a substantial time to get ready for intended use or sale (the "qualifying assets") are capitalised as part of the costs of those assets, if the commencement date for capitalisation is on or after 1 January 2009. The Group considers prepayments for aircraft as the qualifying asset with regard to which borrowing costs are capitalised. The capitalisation starts when the Group: () bears expenses related to the qualifying asset; (b) bears borrowing costs; and (c) takes measures to get the asset ready for intended use or sale. Capitalisation of borrowing costs continues up to the date when the assets are substantially ready for their use or sale. The Group capitalises borrowing costs related to capital expenditure made on qualifying assets. Borrowing costs capitalised are calculated at the Group's average funding cost (the weighted average 17 PJSC AEROFLOT Notes to the Consolidated Financial Statements for the year ended 31 December 2015 (All amounts in millions of Russian Roubles, unless otherwise stated) 2. BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Capitalisation of borrowing costs (continued) interest cost is applied to the expenditures on the qualifying assets), except to the extent that funds are borrowed specifically for the purpose of obtaining a qualifying asset. Where this occurs, actual borrowing costs incurred less any investment income on the temporary investment of those borrowings are capitalised. Impairment of property, plant and equipment At each reporting date the management reviews its property, plant and equipment to determine whether there is any indication of impairment of those assets. If any such indication exists, the recoverable amount of the asset is estimated by management as the higher of: an asset's fair value less costs to sell and its value in use. The carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recorded within operating costs in the Group's consolidated statement of profit or loss for the year. An impairment loss recognised for an asset in prior years is reversed where appropriate if there has been a change in the estimates used to determine the asset's value in use or fair value less costs to sell. Operating leases Where the Group is a lessee in a lease which does not transfer substantially all the risks and rewards incidental to ownership from the lessor to the Group, the total lease payments are charged to profit or loss for the year on a straight-line basis over the lease term. The lease term is the non-cancellable period for which the lessee has contracted to lease the asset together with any further terms for which the lessee has the option to continue to lease the asset, with or without further payment, when at the inception of the lease it is reasonably certain that the lessee will exercise the option. Related direct expenses including custom duties for imported leased aircraft are recognised within non-current assets at the time of the aircraft transfer and amortised using a straight-line method over the term of lease agreement. Amortisation charges are recognised within operating costs. In compliance with the customs legislation of the Russian Federation, the Group pays customs duties in instalments, and therefore customs duties payment obligations are initially recognised at amortised cost. The operating lease agreements include requirements to perform regular repairs and maintenance works during the lease term. Accordingly, the Group accrues a provision in the amount of discounted expenses needed to perform regular repairs and maintenance works. The estimated expenses are based on the most reliable data available at the time of such estimation. The provisions of the operating lease agreements, age and condition of the aircraft and engines, market value of fixtures, key parts and components subject to replacement and the cost of required work are taken into account. The provision is recorded at the discounted value. The costs of regular repairs and maintenance works performed for aircraft held under finance lease are capitalized and amortized over the shorter of (i) the scheduled usage period to the next major inspection event or (ii) the remaining life of the asset or (iii) remaining lease term. Aircraft lease security deposits Aircraft lease security deposits represent amounts paid to the lessors of aircraft in accordance with the provisions of operating lease agreements. These security deposits are returned to the Group at the end of the lease period. Security deposits related to lease agreements are presented separately in the consolidated statement of financial position (aircraft lease security deposits) and recorded at amortised cost. 18 PJSC AEROFLOT Notes to the Consolidated Financial Statements for the year ended 31 December 2015 (All amounts in millions of Russian Roubles, unless otherwise stated) 2. BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Classification of financial assets Financial assets have the following categories: ) loans and receivables, b) financial assets available for sale, and c) financial assets measured at fair value through profit or loss, which are recognised in this category from the date of the initial recognition. Loans and receivables are unquoted on active market non-derivative financial assets with fixed or determinable payments other than those that the Group intends to sell in the near term. Derivative financial instruments, including currency and interest rate options, fuel options, and currency and interest rate swaps are carried at their fair value. All derivative instruments are carried as assets when fair value is positive and as liabilities when fair value is negative. Changes in the fair value of derivative instruments are included in profit or loss for the year, except for instruments subject to special hedge accounting rules, whose fair value changes are recorded in other comprehensive income. All other financial assets are included in the available-for-sale category, which includes investment securities which the Group intends to hold for an indefinite period of time and which may be sold in response to needs for liquidity or changes in interest rates, exchange rates or equity prices. Classification of financial liabilities Financial liabilities have the following measurement categories: a) held for trading, which also includes financial derivatives, and (b) other financial liabilities. Liabilities held for trading are carried at fair value with changes in value recognised in profit or loss for the year (as finance income or finance costs) in the period in which they arise. Other financial liabilities are carried at amortised cost. Financial instruments - key measurement terms Depending on their classification, financial instruments are carried at fair value, cost or amortised cost, as described below. Fair value - is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The best evidence of fair value is price in an active market. An active market is one in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. Fair value of financial instruments traded in an active market is measured as the product of the quoted price for the individual asset or liability and the quantity held by the entity. A portfolio of financial derivatives or other financial assets and liabilities that are not traded in an active market is measured at the fair value of a group of financial assets and financial liabilities on the basis of the price that would be received to sell a net long position (i.e. an asset) for a particular risk exposure or paid to transfer a net short position (i.e. a liability) for a particular risk exposure in an orderly transaction between market participants at the measurement date. This is applicable for assets 19 PJSC AEROFLOT Notes to the Consolidated Financial Statements for the year ended 31 December 2015 (All amounts in millions of Russian Roubles, unless otherwise stated) 2. BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Financial instruments - key measurement terms (continued) carried at fair value on a recurring basis if: (a) the Group manages the group of financial assets and financial liabilities on the basis of the Company's net exposure to a particular market risk (or risks) or to the credit risk of a particular counterparty in accordance with the Group's documented risk management or investment strategy; (b) the Group provides information on that basis about the group of assets and liabilities to the entity's key management personnel; and (c) the market risks, including duration of the Group's exposure to a particular market risk (or risks) arising from the financial assets and financial liabilities is substantially the same. Valuation techniques such as discounted cash flow models or models based on recent arm's length transactions or consideration of financial data of the investees are used to measure fair value of certain financial instruments for which external market pricing information is not available. Financial instrument measured at fair value are analysed by levels of the fair value hierarchy as follows: (i) level 1 are measurements at quoted prices (unadjusted) in active markets for identical assets or liabilities, (ii) level 2 measurements are valuations techniques with all material inputs observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices), and (iii) level 3 measurements, which are valuations not based on solely observable market data (that is, the measurement requires significant unobservable inputs). Transfers between levels of the fair value hierarchy are deemed to have occurred at the end of the reporting period. Cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire an asset at the time of its acquisition and includes transaction costs. Measurement at cost is only applicable to investments in equity instruments that do not have a quoted market price and whose fair value cannot be reliably measured and derivatives that are linked to, and must be settled by, delivery of such unquoted equity instruments. Amortised cost is the amount at which the financial instrument was recognised at initial recognition less any principal repayments, minus or plus accrued interest, and for financial assets - less any writedown (direct or through the valuation provision account) for incurred impairment losses. Accrued interest includes amortisation of transaction costs deferred at initial recognition and of any premium or discount to maturity amount using the effective interest method. Accrued interest income and accrued interest expense, including both accrued coupon and amortised discount or premium (including fees deferred at origination, if any), are not presented separately and are included in the carrying values of related items in the consolidated statement of financial position. The effective interest method is a method of allocating interest income or interest expense over the relevant period so as to achieve a constant periodic rate of interest (effective interest rate) on the carrying amount. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts (excluding future credit losses) through the expected life of the financial instrument or a shorter period, if appropriate, to the net carrying amount of the financial instrument. The effective interest rate discounts cash flows of variable interest instruments to the next interest 20 PJSC AEROFLOT Notes to the Consolidated Financial Statements for the year ended 31 December 2015 (All amounts in millions of Russian Roubles, unless otherwise stated) 2. BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Financial instruments - key measurement terms (continued) repricing date, except for the premium or discount which reflects the credit spread over the floating rate specified in the instrument, or other variables that are not reset to market rates. Such premiums or discounts are amortised over the whole expected life of the instrument. The present value calculation includes all fees paid or received between parties to the contract that are an integral part of the effective interest rate. Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of a financial instrument. An incremental cost is one that would not have been incurred if the transaction had not taken place. Transaction costs include fees and commissions paid to agents and advisors, levies by regulatory agencies and securities exchanges, and transfer taxes and duties imposed on property transfer. Transaction costs do not include debt premiums or discounts, financing costs or internal administrative or holding costs. Initial recognition of financial instruments Derivative financial instruments, including financial instruments subject to special hedge accounting rules, are initially recognised at fair value. All other financial instruments are initially recorded at fair value plus transaction costs. Fair value at initial recognition is best evidenced by the transaction price. A gain or loss on initial recognition is only recorded if there is a difference between fair value and transaction price which can be evidenced by other observable current market transactions in the same instrument or by a valuation technique whose inputs include only data from observable markets. All purchases and sales of financial assets that require delivery within the time frame established by regulation or market convention (\"regular way\" purchases and sales) are recorded at trade date, which is the date on which the Group commits to deliver a financial asset. All other purchases are recognised when the Company/Group becomes a party to the contractual provisions of the instrument. Derecognition of financial assets and liabilities The Group derecognises financial assets when: () the assets are redeemed or the rights to cash flows from the assets expired, or (b) the Group has transferred the rights to the cash flows from financial assets or entered into a transfer agreement, while: (i) also transferring all substantial risks and rewards of ownership of the assets, or (ii) neither transferring nor retaining all substantial risks and rewards of ownership but losing control over such assets. Control is retained if the counterparty does not have the practical ability to sell the asset in its entirety to an unrelated third party without needing to impose additional restrictions on the sale. The Group removes a financial liability (or a part of a financial liability) from its consolid