Qantas 2011 Annual Report Download - page 83

Download and view the complete annual report

Please find page 83 of the 2011 Qantas annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 124

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124

81 ANNUAL REPORT 2011
for the year ended 30 June 2011
Notes to the Financial Statements continued
Qantas Group

$M

$M
ISSUED CAPITAL
Issued and paid-up capital: ,,, (: ,,,) ordinary shares, fully paid , ,
Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at
shareholders’ meetings.
In the event of wind-up, Qantas ordinary shareholders rank after all creditors and are fully entitled to any residual proceeds on liquidation.
Treasury shares consist of shares held in trust for Qantas employees in relation to equity compensation plans. As at  June , ,,
(: ,,) shares were held in trust and classied as treasury shares.
RESERVES
Employee compensation reserve  
Hedge reserve (refer to Note (B))  
Foreign currency translation reserve () ()
Total reserves  
NATURE AND PURPOSE OF RESERVES
Employee Compensation Reserve
The fair value of equity plans granted is recognised in the employee compensation reserve over the vesting period. This reserve will be
reversed against treasury shares when the underlying shares vest and transfer to the employee. No gain or loss is recognised in the
Consolidated Income Statement on the purchase, sale, issue or cancellation of Qantas’ own equity instruments.
Hedge Reserve
The hedge reserve comprises the effective portion of the cumulative net change in the fair value of cash ow hedging instruments related
to future forecast transactions.
Foreign Currency Translation Reserve
The foreign currency translation reserve comprises all foreign exchange differences arising from the translation of the Financial Statements
of foreign controlled entities and associates, as well as from the translation of liabilities that form part of the Qantas Group’s net investment
in a foreign controlled entity.
24. Share-based Payments
The Deferred Share Plan (DSP) Terms and Conditions were approved by shareholders at the  AGM. The DSP governed equity benets
to Executives within the Qantas Group made prior to  June . There have been no modications to the DSP Terms and Conditions
during the year.
Equity benets to Executives made after  July  are governed by the Employee Share Plan (ESP) Trust Deed, the Short Term Incentive Plan
(STIP) Terms and Conditions and the Long Term Incentive Plan (LTIP) Terms and Conditions which were approved by the Qantas Remuneration
Committee Chairman under Board Delegation on  August .
Further details regarding the operation of equity plans for Executives are outlined in the Directors’ Report.
The total equity settled share-based payment expense for the year was $ million (: $ million).
A LONG TERM INCENTIVE PLAN LTIP
The LTIP is specically targeted to Senior Executives in key roles or other participants who have been identied as high potential Executives.
All Rights are redeemable on a one-for-one basis for Qantas shares, subject to the achievement of performance hurdles. Dividends are
not payable on the Rights.
Number of Rights
Performance Rights Reconciliation  
Rights outstanding as at  July ,, ,,
Rights granted ,, ,,
Rights forfeited (,,) (,)
Rights lapsed (,) (,)
Rights exercised (,) (,)
Rights outstanding as at  June ,, ,,
Rights exercisable as at  June , ,
23. Capital and Reserves