Qantas 2014 Annual Report Download - page 96

Download and view the complete annual report

Please find page 96 of the 2014 Qantas annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

94
QANTAS ANNUAL REPORT 2014
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FOR THE YEAR ENDED 30 JUNE 2014
25. DERIVATIVES AND HEDGING INSTRUMENTS CONTINUED
To the extent that the hedges were assessed as highly effective, the effective portion of changes in fair value is included in the hedge
reserve. For further infor
mation on accounti
ng for derivative financial instruments as cash flow hedges, refer to Note 36(C). The
periods in which the related cash flows are expected to occur are summarised below:
Qantas Group
2014
$M
Less than
1 Year 1 to 5 Years
More than
5 Years Total
Contracts to hedge
Future foreign currency receipts and payments (47) (2) –(49)
Future aviation fuel payments (1) – – (1)
Future interest payments (12) (28) (5) (45)
Future capital expenditure payments (8) – – (8)
(68) (30) (5) (103)
Tax effect 31
Total net loss included within hedge reserve (72)
2013
$M
Contracts to hedge
Future foreign currency receipts and payments 132 51 –183
Future aviation fuel payments (1) – – (1)
Future interest payments (8) (29) (6) (43)
Future capital expenditure payments 23 14 –37
146 36 (6) 176
Tax effect (53)
Total net gain included within hedge reserve 123
(D) DERIVATIVE INEFFECTIVENESS AND NON-DESIGNATED DERIVATIVES IN THE CONSOLIDATED INCOME STATEMENT
Amounts shown below reflect ineffectiveness on changes in the fair value of any derivative instrument in a cash flow hedge, or part of
a derivative instrument that does not qualify for hedge accounting. AASB 139
Financial Instruments: Recognition and Measurement
(AASB 139) permits reporting entities to separate the intrinsic value and time value of an option. AASB 139 allows for the intrinsic
value of an option to be designated as part of any hedging relationship. As a result, the time value component is not hedge accounted
and changes in liabilities are recognised immediately in the Consolidated Income Statement for the financial period as it does not
form part of a hedging relationship.
Qantas Group
2014
$M
2013
$M
INEFFECTIVE AND NON-DESIGNATED DERIVATIVES
Ineffective portion of cash flow hedges 110 (5)
Components of derivatives not hedge accounted (including time value of options) (102) (71)
Ineffective and non-designated derivatives expense 8(76)