Qantas 2016 Annual Report Download - page 87

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Notes to the Financial Statements continued
For the year ended 30 June 2016
25 DEED OF CROSS GUARANTEE
Pursuant to ASIC Class Order 98/1418 (as amended) (Class Order), the wholly owned entities identified below are relieved from the
Corporations Act requirements for preparation, audit, distribution and lodgment of Financial Statements and Directors’ Reports:
AAL Aviation Limited Jetstar Services Pty Ltd Qantas Frequent Flyer Operations Pty Ltd
Accumulate Loyalty Services Limited Loyalty Magic Pty Ltd Qantas Ground Services Pty Ltd
Airlink Pty Ltd Network Aviation Holdings Pty Ltd Qantas Group Flight Training
(Australia) Pty Ltd
Australian Air Express Pty Ltd Network Aviation Pty Ltd Qantas Group Flight Training Pty Ltd
Australian Airlines Limited Network Holding Investments Pty Ltd Qantas Information Technology Limited
Australian Regional Airlines Pty Ltd Network Turbine Solutions Pty Ltd Qantas Road Express Pty Ltd
Eastern Australia Airlines Pty Ltd Osnet Jets Pty Ltd QF Cabin Crew Australia Pty Ltd
Express Freighters Australia
(Operations) Pty Ltd
Q Catering Limited Regional Airlines Charter Pty Ltd
Express Freighters Australia Pty Ltd Q H Tours Limited Second Brisbane Airport Pty Ltd
First Brisbane Airport Pty Ltd Qantas Asia Investment Company Pty Ltd Snap Fresh Pty Ltd
Hooroo Pty Ltd Qantas Catering Group Limited Sunstate Airlines (Qld) Pty Ltd
Impulse Airlines Holdings Pty Ltd Qantas Courier Limited The Network Holding Trust
Jetstar Airways Pty Ltd Qantas Domestic Pty Ltd The Network Trust
Jetstar Asia Holdings Pty Ltd Qantas Freight Enterprises Limited
Jetstar Group Pty Ltd Qantas Frequent Flyer Limited
It is a condition of the Class Order that Qantas and each of the controlled entities eligible to obtain relief under the Class Order enter
into a Deed of Cross Guarantee (Deed). Under the Deed, Qantas guarantees to each creditor payment in full of any debt upon the
winding up under certain provisions of the Corporations Act of any of the controlled entities that is party to the Deed. If the winding
up occurs under other provisions of the Corporations Act, Qantas will only be liable if, six months after a resolution or order for the
winding up of the controlled entity, any debt of a creditor of that controlled entity has not been paid in full. Each controlled entity that
is party to the Deed has given similar guarantees in the event Qantas is wound up.
Qantas and its eligible controlled entities first entered into a Deed on 4 June 2001. Subsequently, additional controlled entities
became party to the Deed by way of Assumption Deeds dated 17 June 2002, 26 June 2006, 29 June 2007, 30 June 2008, 29 June 2009,
16 June 2010, 25 November 2010, 4 April 2011, 13 October 2011, 20 November 2012 and 26 November 2015.
The Consolidated Condensed Income Statement and Balance Sheet for Qantas and each of its controlled entities that are party to
the Deed are set out below. The principles of consolidation are:
–Transactions, balances and unrealised gains and losses on transactions between entities that are party to the Deed are eliminated
–Investments in entities that are not party to the Deed are carried at cost less any accumulated impairment
–Dividends received from investments are recognised as income
(A) CONSOLIDATED CONDENSED INCOME STATEMENT
2016
$M
2015
$M
Revenue and other income 15,689 15,370
Expenditure (14,104) (14,491)
Statutory profit before income tax expense and net finance costs 1,585 879
Net finance costs (206) (246)
Statutory profit before income tax expense 1,379 633
Income tax expense (394) (230)
Statutory profit for the year 985 403
Retained earnings as at 1 July (1,146) (1,548)
Defined benefit actuarial gains, net of tax – –
Shares vested and transferred to employees (15) (2)
Share-based payments unvested and lapsed 1 1
Retained earnings as at 30 June (175) (1,146)
85
QANTAS ANNUAL REPORT 2016