Qantas 2014 Annual Report Download - page 114

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112
QANTAS ANNUAL REPORT 2014
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR ENDED 30 JUNE 2014
36. SIGNIFICANT ACCOUNTING POLICIES CONTINUED
(D) REVENUE RECOGNITION
Passenger and Freight Revenue
Passenger and freight revenue is measured at the fair value of the consideration received, net of sales discount, passenger and
freight interline/IATA commission and Goods and Services Tax. Other sales commissions paid by the Qantas Group are included in
expenditure. Tours and travel revenue is measured at the net amount of commission retained by the Qantas Group.
Passenger revenue and freight revenue is recognised when passengers or freight are uplifted. Unused tickets are recognised as
revenue using estimates based on the terms and conditions of the ticket, historic trends and experience.
Passenger recoveries (including fuel surcharge on passenger tickets) are included in net passenger revenue. Freight fuel surcharge
is included in net freight revenue.
Revenue from ancillary passenger revenue, passenger services fees, lease capacity revenue and air charter revenue is recognised
as revenue when the services are provided.
Receipts for advanced passenger ticket sales or freight sales which have not yet been availed or recognised as revenue are deferred
on the balance sheet as revenue received in advance.
Redemption Revenue
Revenue received for the issuance of points is deferred as a liability (revenue received in advance) until the points are redeemed or
the passenger is uplifted, in the case of Qantas Group flight redemptions.
Redemption revenue is measured based on Management’s estimate of the fair value of the expected awards for which the
points will be redeemed. The fair value of the awards is reduced to take into account the proportion of points that are expected
to expire (breakage).
Marketing Revenue
Marketing revenue associated with the issuance of points is recognised when the service is performed (typically on the issuance
of the point).
Marketing revenue is measured as the difference between the cash received on issuance of a point and the redemption revenue.
Membership Fee Revenue
Membership fee revenue results from the initial joining fee charged to members. Revenue is recognised on expiry of any refund period.
Contract Work Revenue
Contract work revenue results from the rendering of services associated with contracts.
Where services performed are in accordance with contractually agreed terms over a short period and are task specific, revenue is
recognised when the services have been performed or when the resulting ownership of the goods passes to the customer.
Revenue on long-term contracts to provide goods or services is recognised in proportion to the stage of completion of the contract
when the stage of contract completion can be reliably measured or otherwise on completion of the contract.
Other Revenue/Income
Income resulting from claims for liquidated damages is recognised as other income when all performance obligations are met,
including when a contractual entitlement exists, when it can be reliably measured and when it is probable that the economic benefits
will accrue to the Qantas Group.
Revenue from Qantas Club membership fees, freight terminal fees, retail/advertising and other property revenue and other
miscellaneous income is recognised as other revenue/income at the time service is provided.
Tours and travel revenue is recognised when tours and travel air tickets and land content are utilised.
Asset Disposals
Gains or losses on the disposal of assets are recognised at the date the significant risks and rewards of ownership of the asset
passes to the buyer, usually when the purchaser takes delivery of the asset. The gain or loss is determined by comparing the
proceeds on disposal with the carrying amount of the asset.