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Qantas Annual Report 2004 75Spirit of Australia
Notes to the Financial Statements continued
for the year ended 30 June 2004
9. Director and executive disclosures continued
LOANS AND OTHER TRANSACTIONS WITH SPECIFIED DIRECTORS AND SPECIFIED EXECUTIVES
Loans
No Specified Director or Specified Executive held any loans from the Qantas Group during or at the end of the year.
Other Transactions with the Qantas Group
A number of Specified Directors and Specified Executives, or their personally related entities, hold positions in other entities that result
in them having control or significant influence over the financial or operating policies of these entities.
The Publishing and Broadcasting (PBL) group is a related entity to Mr Packer. During the year PBL purchased air travel of $11.8 million
from Qantas. All transactions were conducted on normal commercial terms.
10. International Financial Reporting Standards
For the reporting period beginning on or after 1 January 2005, the Qantas Group must comply with International Financial Reporting
Standards (IFRS) as issued by the Australian Accounting Standards Board (AASB).
The areas of significant difference between Australian Generally Accepted Accounting Principles (GAAP) and IFRS, as applied to the Qantas
Group, have been identified and work has commenced to quantify the impact of adoption. To date, quantification has not been completed
or presented to the Board for approval.
MANAGING THE TRANSITION TO IFRS
The Board has established a Project Group, reporting through to the Chief Financial Officer, to achieve the transition to IFRS reporting.
The Qantas implementation project consists of three phases.
Assessment Phase
The IFRS Project Group has completed the Assessment Phase. In completing the Assessment phase a high level overview of the impacts
of IFRS reporting on existing accounting and reporting policies, procedures, systems, processes, business structures and staff has been
undertaken.
Design Phase
The Design Phase is well progressed. This phase aims to formulate the changes required to existing accounting policies, procedures,
systems and processes in order to transition to IFRS.
The Design Phase will incorporate:
formulating revised accounting policies and procedures for compliance with IFRS and quantifying their impact;
developing revised IFRS disclosures; and
designing accounting and business processes to support IFRS reporting obligations.
At the conclusion of the Design Phase, Board approval will be sought for each proposed change in accounting policy and disclosure.
The Design Phase will be completed during the 2004/05 financial year.
Implementation Phase
The Implementation Phase will include the implementation of identified changes to accounting and business procedures, processes,
systems and training. It is expected that the Implementation Phase will be completed during the 2004/05 financial year.