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Notes to the Financial Statements continued
For the year ended 30 June 2016
29 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(A) REPORTING ENTITY
Qantas Airways Limited (Qantas) is a for-profit company limited by shares, incorporated in Australia whose shares are publicly traded
on the Australian Securities Exchange (ASX) and which is subject to the operation of the Qantas Sale Act 1992.
The Consolidated Financial Statements for the year ended 30 June 2016 comprise Qantas and its controlled entities (together
referred to as the Qantas Group) and the Qantas Group’s interest in investments accounted for under the equity method.
Qantas has five subsidiaries that are material to the Qantas Group in 2016 and 2015. The Parent has majority voting rights in
respect of each of the material subsidiaries. Materiality has been assessed based on the contribution of statutory profit/(loss)
tothe Qantas Group
.
The Consolidated Financial Statements of Qantas for the year ended 30 June 2016 were authorised for issue in accordance with a
resolution of the Directors on 2 September 2016.
i. Statement of Compliance
The Consolidated Financial Statements are general purpose financial statements which have been prepared in accordance
with Australian Accounting Standards (AASBs) adopted by the Australian Accounting Standards Board (AASB) and with the
Corporations Act 2001. The Consolidated Financial Statements also comply with International Financial Reporting Standards
andinterpretations (IFRICs) adopted by the International Accounting Standards Board (IASB).
ii. Basis of Preparation
The Consolidated Financial Statements are presented in Australian dollars, which is the functional currency of the Qantas Group,
and have been prepared on the basis of historical cost except for the following material items in the Consolidated Balance Sheet:
–Derivatives at fair value through profit and loss are measured at fair value
–Assets classified as held for sale are measured at lower of cost and fair value less costs to sell
–Net defined benefit asset/(liability) are measured at fair value of plan assets less the present value of the defined benefit obligation
Qantas is a company of the kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191.
In accordance with that Instrument, all financial information presented has been rounded to the nearest million dollars, unless
otherwise stated. In addition, all financial information presented is representative of the Qantas Group, unless otherwise stated.
(B) CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of the Consolidated Financial Statements requires management to make judgements, estimates and assumptions
that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. The estimates
and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under
the circumstances, the results of which form the basis for making the judgements about carrying values of assets and liabilities that
are not readily apparent from other sources. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised and in any future periods affected. Judgements made by management in the application
of AASBs that have a significant effect on the Consolidated Financial Statements and estimates with a significant risk of material
adjustment in future periods are included in the following notes:
–Note 16 – Provisions
–Note 18 – Impairment Testing of Cash Generating Units
–Note 24 – Superannuation
(C) PRINCIPLES OF CONSOLIDATION
i. Controlled Entities
Controlled entities are entities controlled by the Group. Control exists when the Group is exposed to or has rights to, variable returns
from its involvement with the entity and has the ability to affect those returns through its power over the entity.
The Financial Statements of controlled entities are included in the Consolidated Financial Statements from the date that control
commences until the date that control ceases.
ii. Non-controlling Interests
Non-controlling interests in the results and equity of controlled entities are shown separately in the Consolidated Income Statement,
Consolidated Statement of Comprehensive Income, Consolidated Statement of Changes in Equity and Consolidated Balance Sheet.
90
QANTAS ANNUAL REPORT 2016