Qantas 2006 Annual Report Download - page 132

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130
Notes to the Financial Statements
for the year ended 30 June 2006
36. Impact of Adopting A-IFRS continued
SUMMARY OF A-IFRS TRANSITION ADJUSTMENTS
Qantas
Standard1Comment
Transition
Impact on
Retained
Earnings at
1 July 2004
$M
(Dr)/Cr
Post-tax
Impact of
A-IFRS on
Income
Statement for
2005 year
$M
(Dr)/Cr
Impact on
Retained
Earnings on
Adoption
of AASB 139
at 1 July 2005
$M
(Dr)/Cr
Total
$M
(A) AASB 118
Revenue
A-IFRS required the revenue on the sale to third parties of rights to
have Qantas award points allocated to members of the Frequent Flyer
program, deferred and recognised when the points are redeemed. (669.0) (99.6) – (768.6)
(B) AASB 119
Employee
Benefits
Qantas elected to use the "corridor" method to recognise the net
funding position of its defined benefit superannuation plans.
(53.5) 17.6 – (35.9)
(C) AASB 117
Leases
A-IFRS required the reclassification of six aircraft from operating to
finance leases. (45.8) (3.2) – (49.0)
A-IFRS required other changes to recognise operating leases expense
on a straight line basis. (6.4) (8.2) – (14.6)
(D) AASB 116
Property,
Plant and
Equipment
Qantas elected to reset the asset revaluation reserve on transition
to A-IFRS. 82.9 – – 82.9
A-IFRS requires the capitalisation of the cost of major aircraft and
engine inspections. (50.4) (6.0) – (56.4)
(E) AASB 112
Income Tax
A-IFRS requires the application of the Balance Sheet method of
tax-effect accounting. (10.3) (5.4) – (15.7)
(F) Other A-IFRS requires adjustment in the areas of Share-Based Payments,
and various other items. (4.7) (0.8) – (5.5)
A-IFRS transition adjustments to 30 June 2005 (757.2) (105.6) – (862.8)
(G) AASB 139
Financial
Instruments
A-IFRS requires adjustment to the recognition and classifi cation of
revenue, fuel and currency hedging transactions as well as the
measurement of assets and liabilities classifi ed as fi nancial instruments.
2 – – (36.2) (36.2)
Impact of A-IFRS transition adjustments and adoption of AASB 139
at 1 July 2005 (757.2) (105.6) (36.2) (899.0)
1 The impact of adopting A-IFRS on the comparative Income Statements and Balance Sheet is shown on the following pages.
2 Refer to Note 37 for details of the impact of the adoption of AASB 139 at 1 July 2005.