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90
Spirit of Australia
~Notes to the Financial Statements~
for the year ended 30 June 2005
19. Reserves
Qantas Group Qantas
2005
$M
2004
$M
2005
$M
2004
$M
Asset revaluation reserve 59.9 55.5 82.9 82.9
Foreign currency translation reserve (3.7) (1.1) ––
56.2 54.4 82.9 82.9
MOVEMENTS IN RESERVES
Asset revaluation reserve
Balance at the beginning of the financial year 55.5 55.5 82.9 82.9
Revaluation of land and buildings on acquisition
of outside equity interest of subsidiary 4.4 –––
Balance at the end of the financial year 59.9 55.5 82.9 82.9
Foreign currency translation reserve
Balance at the beginning of the financial year (1.1) (1.5) ––
Net exchange differences relating to self-sustaining foreign operations (2.6) 0.4 ––
Balance at the end of the financial year (3.7) (1.1) ––
NATURE AND PURPOSE OF RESERVES
Asset revaluation reserve
The asset revaluation reserve includes the net revaluation increments and decrements arising from the revaluation of non-current assets
measured at fair value in accordance with AASB 1041 – Revaluation of Non-Current Assets in prior financial years. An amount for the
Qantas Group and Qantas of $52.6 million (2004: $52.6 million) is not available for future asset writedowns as a result of using the
deemed cost election for land when adopting AASB 1041.
Foreign currency translation reserve
The foreign currency translation reserve records the foreign currency differences arising from the translation of self-sustaining foreign
operations, the translation of transactions that hedge the Qantas Group’s net investment in a foreign operation or the translation of
foreign currency monetary items forming part of the net investment in a self-sustaining operation. Refer to Note 1(c).
20. Retained profits
$M $M $M $M
Retained profits at the beginning of the financial year 1,776.3 1,435.9 1,298.3 927.8
Net profit attributable to members of Qantas 763.6 648.4 629.5 676.0
Net effect of acquisition of outside equity interest of subsidiary 7.0 –––
Dividends recognised during the year (353.8) (308.0) (352.9) (305.5)
Retained profits at the end of the financial year 2,193.1 1,776.3 1,574.9 1,298.3