Qantas 2004 Annual Report Download - page 62

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Notes to the Financial Statements continued
for the year ended 30 June 2004
3. Retained profits
Qantas Group
2004 2003
$M $M
Retained profits at the beginning of the year 1,435.9 1,239.1
Net profit attributable to members of the Company 648.4 343.5
Net effect on initial adoption of AASB 1028 “Employee Benefits” –(3.7)
Net effect on dividends from:
Initial adoption of AASB 1044 “Provisions, Contingent Liabilities and Contingent Assets” –140.7
Dividends recognised during the year (308.0) (283.7)
Retained profits at the end of the year 1,776.3 1,435.9
4. Dividends
Dividends recognised in the current year by Qantas are:
Cents Total Franked Percentage
per Amount Date of Tax Rate Franked
Type Share $M Payment % %
2004
Interim - ordinary 8.0 145.8 7 April 2004 30 100
2003 final ordinary dividend recognised
when declared during the year 9.0 159.7 1 October 2003 30 100
Total amount 17.0 305.5
2003
Interim - ordinary 8.0 140.5 9 April 2003 30 100
2002 final ordinary dividend recognised
when declared during the year 9.0 140.7 2 October 2002 30 100
Total amount 17.0 281.2
SUBSEQUENT EVENTS
Since the end of the financial year ended
30 June 2004, the Directors have declared
the following dividend:
Final - ordinary 9.0 166.1 29 September 2004 30 100
Qantas Group
2004 2003
$M $M
Total franking account balance at 30 per cent (2003: 30 per cent) 149.3 179.2
The above amount represents the balance of the franking accounts as at year end, after taking into account adjustments for:
franking credits that will arise from the payment of income tax payable for the current financial year;
franking credits that will arise from the receipt of dividends recognised as receivables at the year end; and
franking credits that may be prevented from being distributed in subsequent years.
The ability to utilise franking credits is dependent upon there being sufficient available profits to declare dividends.
TAX CONSOLIDATION LEGISLATION
On 1 July 2003, Qantas and its Australian wholly-owned subsidiaries expect to adopt the Income Tax Consolidation legislation which
requires a tax-consolidated group to keep a single franking account. The amount of franking credits available to shareholders of the parent
entity (being the head entity in the tax-consolidated group) disclosed at 30 June 2004 has been measured under the new legislation as
those available from the tax-consolidated group.
The comparative information has not been restated for this change in measurement. Had the comparative information been calculated
on the new basis, the “franking credits available” balance as at 30 June 2003 for Qantas would have been $176.6 million.
60 Qantas Annual Report 2004