Qantas 2012 Annual Report Download - page 82

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FOR THE YEAR ENDED 30 JUNE 2012
Notes to the Financial Statements continued
— IFRS 7 Disclosures Offsetting Financial Assets and Financial Liabilities and consequential amendments in AASB 2012-2 Amendments
to Australian Accounting Standards, introduces increased disclosures about offset positions. This amendment will become
mandatory for the Qantas Group’s 30 June 2014 Financial Statements, however, it is not expected to have a material impact
on the Financial Statements.
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, Jetstar, Qantas Frequent Flyer and Qantas Freight operating segments is Underlying
EBIT. The primary reporting measure of the Corporate/Unallocated segment is Underlying PBT as net finance costs are managed
centrally and are not allocated to Qantas, Jetstar, Qantas Frequent Flyer and Qantas Freight operating segments.
Refer to Note 2(e) for a detailed description of Underlying PBT and a reconciliation of Underlying PBT to Statutory (loss)/profit before tax.
B DESCRIPTION OF OPERATING SEGMENTS
The Qantas Group comprises the following main operating segments:
1 Qantas – representing the Qantas passenger flying businesses and related businesses
2 Jetstar – representing the Jetstar passenger flying businesses and related businesses
3 Qantas Frequent Flyer – representing the Qantas Frequent Flyer customer loyalty program
4 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.
On 22 May 2012 the Qantas Group announced that from 1 July 2012, the Qantas segment will be structured as two separate operating
segments – Qantas Domestic and Qantas International. As this decision is effective from 1 July 2012, the segment structure below
reflects the operating segments for the current reporting period with Qantas being reported as a single operating segment.
1. Statement of Significant Accounting Policies continued
QANTAS ANNUAL REPORT 2012080