(X) INTEREST-BEARING LIABILITIES
Interest-bearing liabilities are recognised initially at fair value less
attributable transaction costs. Subsequent to initial recognition,
interest-bearing liabilities are stated at amortised cost, with any
difference between cost and redemption value being recognised
in the Consolidated Income Statement over the period of the
borrowings on an effective interest basis. Interest-bearing
liabilities that are designated as hedged items are subject to
measurement under the hedge accounting requirements.
(Y) SHARE CAPITAL
Ordinary shares are classified as equity. Incremental costs
directly attributable to issue of ordinary shares are recognised
as a deduction from equity, net of any related income tax benefit.
Repurchase of Share Capital
When share capital recognised as equity is repurchased, the
amount of the consideration paid, including directly attributable
costs is recognised as a deduction from equity.
Shares held by the Qantas sponsored employee share plan trust
are recognised as treasury shares and deducted from equity.
Various comparative balances have been reclassified to
align with current year presentation. From 1 July 2012, the
Qantas Segment was restructured as two separate operating
segments – Qantas Domestic and Qantas International. The
presentation of the comparatives in Note 2 has been changed
to reflect the current structure. In addition, the Qantas Group
reclassified amounts from Other revenue/income to Net
passenger revenue and Net freight revenue as discussed in
Note 3. Other reclassifications have no material impact on the
(AA) NEW STANDARDS AND INTERPRETATIONS NOT YET ADOPTED
For new standards and interpretations not yet adopted, refer
to Note 38.
2. Underlying PBT and Operating Segments
(A) UNDERLYING PBT
Underlying PBT is the primary reporting measure used by the
Qantas Group’s chief operating decision-making bodies, being
the Chief Executive Officer, Group Management Committee
and the Board of Directors, for the purpose of assessing the
performance of the Group.
The primary reporting measure of the Qantas Domestic, Qantas
International, Qantas Loyalty, Qantas Freight and Jetstar Group
operating segments is Underlying EBIT. The primary reporting
measure of the Corporate/Unallocated segment is Underlying
PBT as net finance costs are managed centrally and are not
allocated to Qantas Domestic, Qantas International, Qantas
Loyalty, Qantas Freight and Jetstar Group operating segments.
Refer to Note 2(D) for a detailed description of Underlying PBT
and a reconciliation of Statutory profit/(loss) before tax to
(B) DESCRIPTION OF OPERATING SEGMENTS
From 1 July 2012, the Qantas Segment was restructured as two
separate operating segments – Qantas Domestic and Qantas
International. The presentation of the comparatives has been
changed to reflect the current structure. The Qantas Group
comprises the following operating segments:
Qantas Domestic, Qantas International, Qantas Loyalty and
Qantas Freight operating segments are collectively referred
to as Qantas Brands.
Qantas Brands is a cash generating unit (CGU) comprising those
operations of the Qantas Group which are dependent on the
Qantas fleet and the Qantas brand to collectively generate cash
inflows and derive value.
To drive business focus, assign accountability and monitor
performance, the Qantas Brands operations are managed
through four operating segments. This management approach
has not involved separating the operating segments into
stand alone operations or implying the capital structuring or
transactions that would be required for such a separation.
The Qantas fleet and the Qantas Brand together support all
the operating segments within Qantas Brands. In order to set
targets and assess the performance, including accountability
of the operating segments (as measured by Underlying EBIT),
Qantas Domestic and Qantas International report depreciation
expense for passenger aircraft and Qantas Freight reports
depreciation expense for freighters.
The Australian domestic passenger
flying business of Qantas Brands.
Qantas International The International passenger flying
business of Qantas Brands.
Operates the Qantas customer loyalty
program for Qantas Brands
(Qantas Frequent Flyer) as well as
other marketing services, loyalty
and recognition programs.
The air cargo and express freight
business of Qantas Brands.
The Jetstar Group are those operations of the Qantas Group
which are dependent on the Jetstar fleet and the Jetstar Brand
being the Jetstar passenger flying businesses (including Jetstar
Group’s investments in Jetstar branded airlines in Asia).
Costs associated with the centralised management and
governance of the Qantas Group, together with certain items
which are not allocated to business segments and other
businesses of the Qantas Group which are not considered
to be significant reportable segments are reported in
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2013
1. Statement of Significant Accounting Policies