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79 Qantas Annual Report 2008
Qantas Airways Limited (Qantas) is a company limited by shares
incorporated in Australia whose shares are publicly traded on the ASX
and which is subject to the operation of the Qantas Sale Act as described
in the Corporate Governance Statement.
The consolidated Financial Report of Qantas for the year ended
30 June 2008 comprises Qantas and its controlled entities (together
referred to as the Qantas Group) and the Qantas Group’s interest
in associates and jointly controlled entities.
The Financial Report of Qantas for the year ended 30 June 2008 was
authorised for issue in accordance with a resolution of the Directors
on 22 September 2008.
(A) Statement of Compliance
The Financial Report is a general purpose fi nancial report which has
been prepared in accordance with Australian Accounting Standards
(AASB) adopted by the Australian Accounting Standards Board and the
Corporations Act. The Financial Report also complies with International
Financial Reporting Standards (IFRS) and interpretations adopted by
the International Accounting Standards Board.
(B) Basis of Preparation
The Financial Report is presented in Australian dollars and has been
prepared on the basis of historical costs except in accordance with
relevant accounting policies where assets and liabilities are stated
at their fair values. Assets classifi ed as held for sale are stated at
the lower of carrying amount and fair value less costs to sell.
Qantas is a company of the kind referred to in Australian Securities and
Investments Commission (ASIC) Class Order 98/100 dated 10 July 1998
(updated by CO 05/641 effective 28 July 2005 and CO 06/51 effective
31 January 2006) and in accordance with the Class Order, amounts
in the Financial Report have been rounded to the nearest hundred
thousand dollars, unless otherwise stated.
The accounting policies set out below have been consistently applied
to all periods presented in the consolidated Financial Report.
Qantas has elected to early adopt all Australian Accounting
Standards, Amendments and Interpretations that had been issued
by the Australian Accounting Standards Board as of 30 June 2008,
except as noted below. Other than Interpretation 13 Customer
Loyalty Programmes, no standards adopted early had a material
impact on the Financial Report. The impact of early adopting
Interpretation 13 is set out in Note 2.
The following AASB Amendments and Interpretations were not
adopted early:
AASB 8 Operating Segments (AASB 8) and the consequential
amendments in A ASB 2007-3 Amendments to Australian Accounting
Standards arising from AASB 8 [AASB 5, AASB 6, AASB 102, AASB
107, AASB 119, AASB 127, AASB 134, AASB 136, AASB 1023 &
AASB 1038] (AASB 2007-3), applicable on or after 1 January 2009;
Revised AASB 3 Business Combinations (AASB 3), applicable for
annual reporting periods beginning on or after 1 January 2009;
Revised AASB 101 Presentation of Financial Statements (AASB 101),
applicable for annual reporting periods beginning on or after
1 January 2009;
Revised AASB 127 Consolidated and Separate Financial Statements
(AASB 127), applicable for annual reporting periods beginning on
or after 1 January 2009;
•
•
•
•
AASB 2008-1 Amendments to Australian Accounting Standard –
Share based Payment: Vesting Conditions and Cancellations (AASB
2008-1) applicable for annual reporting periods beginning on or
after 1 January 2009;
AASB 2008-2 – Amendments to Australian Accounting
Standard- Puttable Financial Instruments and Obligations
arising on Liquidation [AASB 7, AASB 101, AASB 132, AASB 139
& Interpretation 2] (AASB 2008-2) applicable for annual reporting
periods beginning on or after 1 January 2009; and
AASB 2008-3 – Amendments to Australian Accounting Standard
arising from AASB 3 and AASB 127 [AASBs 1, 2, 4, 5, 7, 101, 107,
112, 114, 116, 121, 128, 131, 132, 133, 134, 136, 137, 138 & 139
& Interpretations 9 & 107] (AASB 2008-3) applicable for annual
reporting periods beginning on or after 1 January 2009.
AASB 8 and AASB 2007-3 will have an impact on the disclosure
of operating segments within the Financial Report. Owing to ongoing
restructuring of the Qantas Group, it is not considered appropriate
to early adopt the Standard and its consequential amendments.
AASB 3, AASB 127 and AASB 2008-3, which must be early-adopted
together, will have an impact on the acquisition accounting for
business combinations and the accounting of non-controlling
interests. The Qantas Group is yet to determine the effect of
these Standards on the Financial Report.
AASB 101 introduces as a fi nancial statement the “statement of
comprehensive income”. The revised Standard does not change the
recognition, measurement or disclosure of transactions and events
that are required by other AASBs. The Qantas Group is yet to
determine the potential effect of the revised Standard on the Financial
Report.
AASB 2008-1 changes the measurement of the share-based
payments that contain non-vesting conditions. The Qantas Group is
yet to determine the effect of this Standard on the Financial Report.
AASB 2008-2 amends the defi nition of a fi nancial liability with
respect to certain puttable fi nancial instruments. The Qantas Group
is yet to determine the effect of this Standard on the Financial Report.
(C) Critical Accounting Estimates and Judgements
The preparation of a Financial Report conforming with AASB requires
management to make judgements, estimates and assumptions that
affect the application of 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 of 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.
The 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 if the revision affects only that period,
or in the period of the revision and future periods if the revision affects
both current and future periods. Judgements made by management
in the application of AASB that have a signifi cant effect on the Financial
Report and estimates with a signifi cant risk of material adjustment
in the next year are highlighted in the specifi c accounting policies
detailed below.
•
•
•
Notes to the Financial Statements
for the year ended 30 June 2008
1. Statement of Significant Accounting Policies
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