Qantas 2012 Annual Report Download - page 88

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FOR THE YEAR ENDED 30 JUNE 2012
Notes to the Financial Statements continued
The following are included in statutory (loss)/profit before income tax expense and net finance costs:
Qantas Group
2012
$M
2011
$M
OTHER ITEMS REQUIRING DISCLOSURE
Changes in estimate of discount rates1() 
Legal provisions2 ()
Net loss on disposal of investments and related transaction costs3– ()
Net loss on disposal of property, plant and equipment () ()
Net foreign currency gain/(losses) ()
Non-aircraft operating lease rentals () ()
1 During the year ended 30 June 2012 the Qantas Group changed its estimate of the discount rates used to calculate the present value of provisions and employee benefits
resulting in an increase in net expenses. (Refer to Note 1(C)).
2 Legal provisions represent provisions for freight regulatory fines and third party class action.
3 During the year ended 30 June 2011 the Qantas Group disposed of its investments in DPEX Group and Harvey Holidays Pty Ltd. Additionally, the Group deconsolidated
Jetset Travelworld Group as a result of the merger of Jetset Travelworld Group with Stella Travel Services. These transactions resulted in a net loss of $20 million after
transaction costs. Refer to Note 27(B) for further details.
5. Net Finance Costs
Qantas Group
2012
$M
2011
$M
FINANCE INCOME
Interest income on financial assets measured at amortised cost  
Interest income from jointly controlled entity  
Unwind of discount on receivables  
Total finance income  
FINANCE COSTS
Interest expense on financial liabilities measured at amortised cost  
Fair value hedges
Fair value adjustments on hedged items () ()
Fair value adjustments on derivatives designated in a fair value hedge  
Less: capitalised interest1() ()
Total finance costs on financial liabilities  
Unwind of discount on provisions and other liabilities
Employee benefits  
Other provisions and other liabilities 
Total finance costs  
Net finance costs () ()
1 The borrowing costs are capitalised using the average interest rate applicable to the Qantas Group’s debt facilities being 7.2 per cent (2011: 6.8 per cent).
4. Statutory (Loss)/Profit Before Income Tax Expense and Net Finance Costs
QANTAS ANNUAL REPORT 2012086