Qantas 2013 Annual Report Download - page 120

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118
4. Statutory Prot/(Loss) Before Income Tax Expense and Net Finance Costs
The following items requiring disclosure are included in Statutory prot/(loss) before income tax expense and net nance costs:
Qantas Group
2013
$M
2012
$M
OTHER ITEMS REQUIRING DISCLOSURE
Change in accounting estimate – passenger revenue1134 –
Net foreign currency (losses)/gain (19) 5
Non-aircraft operating lease rentals (229) (212)
1 During the year ended 30 June 2013 the Qantas Group changed its estimate for passenger revenue. Refer to Note 1(C).
5. Net Finance Costs
Qantas Group
2013
$M
2012
$M
FINANCE INCOME
Interest income on nancial assets measured at amortised cost 99 156
Interest income from jointly controlled entity 510
Unwind of discount on receivables 515
Total nance income 109 181
FINANCE COSTS
Interest expense on nancial liabilities measured at amortised cost 326 414
Fair value hedges
Fair value adjustments on hedged items (2) (58)
Fair value adjustments on derivatives designated in a fair value hedge 353
Less: capitalised interest1(61) (83)
Total nance costs on nancial liabilities 266 326
Unwind of discount on provisions and other liabilities
Employee benet provisions 17 20
Other provisions and other liabilities 13 11
Total unwind of discount on provisions and other liabilities 30 31
Total nance costs 296 357
Net nance costs (187) (176)
1 The borrowing costs are capitalised using the average interest rate applicable to the Qantas Group’s unsecured debt facilities being 6.2 per cent (2012: 7 per cent).
Notes to the Financial Statements continued
FOR THE YEAR ENDED 30 JUNE 2013