Qantas 2011 Annual Report Download - page 64

THE QANTAS GROUP 62
for the year ended 30 June 2011
Notes to the Financial Statements continued
— Amendments to IAS  Presentation of Financial Statement –
Presentation of Items of Other Comprehensive Income makes a
number of changes to the presentation of other comprehensive
income, including presenting separately those items that would be
reclassied to prot or loss in the future and those that would
never be reclassied to prot or loss and the impact of tax on
those items. The amendments are generally to be applied
retrospectively. The amendments, which become mandatory for
the Qantas Group’s  June  Financial Statements, will only
impact the presentation of other comprehensive income in the
Consolidated Statement of Comprehensive Income
— IFRS  Consolidated Financial Statements introduces a new
approach determining which investees should be consolidated.
IFRS  Joint Arrangements requires a joint arrangement to be
partially consolidated when the parties have rights and obligations
for underlying assets and liabilities. IFRS  Disclosures of Interests
in Other Entities contains revised disclosure requirements for entities
that have interest in subsidiaries, joint arrangements, associates
and/or unconsolidated structured entities. IAS  Separate Financial
Statements carries forward the existing accounting and disclosure
requirement for separate nancial statements with some minor
clarications. IAS  Investments in Associates () makes limited
amendments to interest in associates and joint ventures and how
to account for changes in interests in joint ventures and associates.
IFRS  Fair Value Measurement explains how to measure fair value
when required to by other accounting standards. The amendments
are generally to be applied retrospectively. The above amendments,
which become mandatory for the Qantas Group’s  June 
Financial Statements, are not expected to have any impact
1. Statement of Signicant Accounting Policies continued
2. Underlying PBT and Operating Segments
A UNDERLYING PBT
Underlying PBT is the primary reporting measure used by the Qantas Group’s chief operating decision-making bodies, being the Executive
Committee and the Board of Directors, for the purpose of assessing the performance of the Group.
The primary reporting measure of the Qantas Group’s operating segments is Underlying EBIT. Underlying EBIT excludes net nance costs
from Underlying PBT as these costs are managed centrally and are not allocated to operating segments. Refer to Note (D) for a detailed
description of Underlying PBT and a reconciliation of Statutory EBIT to Underlying EBIT and Underlying PBT.
B DESCRIPTION OF OPERATING SEGMENTS
The Qantas Group comprises the following main operating segments:
. Qantas – representing the Qantas passenger ying businesses and related businesses
. Jetstar – representing the Jetstar passenger ying businesses, including Jetstar Asia and the investment in Jetstar Pacic Airlines Aviation
Joint Stock Company
. Qantas Frequent Flyer – representing the Qantas Frequent Flyer customer loyalty program
. Qantas Freight – representing the air cargo and express freight businesses
Costs associated with the centralised management and governance of the Qantas Group, together with certain items which are not allocated
to business segments, are reported as Corporate/Unallocated.
Fuel and foreign exchange hedge gains/losses are allocated to segments based on the timing of underlying transactions.
Intersegment revenue has been determined on an arm’s length basis or a cost plus margin basis depending on the nature of the revenue.
C ANALYSIS BY OPERATING SEGMENT

$M Qantas Jetstar
Qantas
Frequent
Flyer
Qantas
Freight
Jetset
Travelworld
Group
Corporate/
Unallocated Eliminations
Consolidated
Underlying
REVENUE AND OTHER INCOME
External segment revenue , , , ,    ,
Intersegment revenue ,      (,) –
Total segment revenue
and other income , , , ,   (,) ,
Share of net prot/(loss)
of associates and jointly
controlled entities  () – – – – 
EBITDAR,    ()  ,
Non-cancellable operating
lease rentals () () –() –  – ()
Depreciation and amortisation(,) () () () () () () (,)
Underlying EBIT     ()  
Underlying net nance costs ()
Underlying PBT 
. As a result of the merger of Jetset Travelworld Group with Stella Travel Services as described in Note (B), Jetset Travelworld Group is no longer an operating segment as
of  October . Consequently, the results of the Jetset Travelworld Group segment for the year ended  June  represent the results for the period from  July 
to  September . From  October , the equity accounted result of the Group’s investment in Jetset Travelworld Group is included in the Qantas segment.
. EBITDAR (Underlying earnings before income tax expense, depreciation, amortisation, non-cancellable operating lease rentals and net nance costs) includes $ million (Qantas
$ million and Jetstar $ million) representing the full year impact of the change in estimates for major cyclical maintenance costs for operating leased aircraft as described in Note (C).
. Depreciation and amortisation includes $ million (Qantas $ million and Jetstar $ million) representing the full year impact of the change in residual value estimates for passenger
aircraft as described in Note (C). Additionally, it includes $ million (Qantas $ million and Jetstar $ million) representing the full year impact of the change in estimates for major cyclical
maintenance costs for operating leased aircraft as described in Note (C).