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107
QANTAS ANNUAL REPORT 2014
34. EVENTS SUBSEQUENT TO BALANCE DATE
On 28 August 2014, the Board approved the outcome of the Structural Review that was ongoing as at 30 June 2014.
A comprehensive Group structural review was announced in December 2013, and has now been completed. The outcomes from the
review are both structural and strategic for the future direction of the Qantas Group:
–Non-core assets identified and valued, including terminals, land and property holdings. The Group will continue to assess
opportunities to sell, with proceeds to repay debt
–Detailed assessment of potential for Qantas Loyalty minority sale undertaken. After careful consideration, the decision has been
made that Loyalty continues to offer major profitable growth opportunities and there was no justification for a partial sale
–No new Jetstar ventures to be established while Group focused on Transformation. Substantial value exists across Jetstar Group
Airlines, to be realised over time
–Following partial repeal of Qantas Sale Act foreign ownership limits, the decision has been made to establish a new holding
structure and corporate entity for Qantas International to increase the potential for future external investment, and creates
long-term options for Qantas International to participate in partnership and consolidation opportunities. This change to the
Group’s organisational structure resulted in the write-down of the Qantas International fleet
The outcome of the Structural Review resulted in the reassessment of the Group’s identified CGUs. Consequently the Qantas Brands
CGU was separated into individual CGUs for each of Qantas Domestic, Qantas International, Qantas Freight and Qantas Loyalty. As
such the 30 June 2014 impairment test was updated and undertaken on the basis of the newly identified CGUs.
While there are significant surpluses in Qantas Loyalty, Qantas Domestic and Qantas Freight CGUs, impairment of $2,560million
arose in the stand-alone Qantas International CGU in respect of aircraft and engines. This non-cash impairment charge has been
reflected in the Consolidated Financial statements for the year ended 30 June 2014 as an adjusting subsequent event.
Other than as disclosed above, there has not arisen in the interval between 30 June 2014 and the date of this Report any other event
that would have had a material effect on the Consolidated Financial Statements as at 30 June 2014.
35. PARENT ENTITY DISCLOSURES FOR QANTAS AIRWAYS LIMITED (QANTAS)
(A) CONDENSED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
Qantas
2014
$M
2013
Restated1
$M
CONDENSED INCOME STATEMENT
Revenue and other income 10,143 11,650
Expenditure (13,874) (10,888)
Statutory (loss)/profit before income tax expense and net finance costs (3,731) 762
Net finance costs (190) (176)
Statutory (loss)/profit before income tax benefit/(expense) (3,921) 586
Income tax benefit 1,073 104
Statutory (loss)/profit for the year (2,848) 690
Qantas
2014
$M
2013
Restated1
$M
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
Statutory (loss)/profit for the year (2,848) 690
Effective portion of changes in fair value of cash flow hedges, net of tax (97) 106
Transfer of hedge reserve to the Income Statement, net of tax (70) (50)
Recognition of effective cash flow hedges on capitalised assets, net of tax (19) 21
Defined benefit actuarial gains, net of tax 109 311
Total other comprehensive (loss)/income for the year (77) 388
Total comprehensive (loss)/income for the year (2,925) 1,078
1 Restatement for the impact of revised AASB 119 relating to defined benefit superannuation plans. Refer to Note 38.