Qantas 2014 Annual Report Download - page 111

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109
QANTAS ANNUAL REPORT 2014
(B) CAPITAL EXPENDITURE COMMITMENTS
Qantas
2014
$M
2013
Restated1
$M
Capital expenditure commitments contracted but not provided for in the
Financial Statements, payable:
No later than one year 690 1,029
Later than one year but not later than five years 3,305 4,618
Later than five years 4,627 3,444
8,622 9,091
Qantas has a number of cancellation and deferral rights within its aircraft purchase contracts which can reduce or defer the
above capital expenditure. The Company has the ability to place ordered aircraft with its investments accounted for under the
equitymethod.
(C) FINANCING FACILITIES
The financing facilities held by the parent entity are the same as those held by the Group as disclosed in Note 26(B).
(D) CONTINGENT LIABILITIES
The contingent liabilities held by the parent entity are the same as those held by the Group as disclosed in Note 29.
(E) PARENT ENTITY GUARANTEES IN RESPECT OF DEBTS OF ITS SUBSIDIARIES
The parent entity has entered into a Deed of Cross Guarantee with the effect that the Company guarantees debts in respect of its
subsidiaries. Further details of the Deed of Cross Guarantee and the subsidiaries subject to the Deed are disclosed in Note 32.
(F) INTEREST-BEARING LIABILITIES
The parent entity has total interest-bearing liabilities of $8,241million (2013: $7,976million), of which $3,532million (2013:
$3,960million)
represent lease and hire purchase liabilities payable to controlled entities. Of the $4,709million (2013: $4,016million) payable to
other parties, $2,314million (2013: $2,097million) represents secured bank loans and lease liabilities with the remaining balance
representing unsecured loans and deferred lease benefits.
36. SIGNIFICANT ACCOUNTING POLICIES
Except for the changes explained in Note 38, the Group has consistently applied the following accounting policies to all periods
presented in these consolidated financial statements.
(A) PRINCIPLES OF CONSOLIDATION
Controlled Entities
Controlled entities are entities controlled by Qantas. Control exists when Qantas is exposed to or has rights to, variable returns from
its involvement with the entity and has the ability to affect those returns through its power over the entity.
The Financial Statements of controlled entities are included in the Consolidated Financial Statements from the date that control
commences until the date that control ceases.
Intra-group transactions, balances and unrealised gains and losses on transactions between group companies are eliminated in
preparing the Consolidated Financial Statements.
Non-controlling interests in the results and equity of controlled entities are shown separately in the Consolidated Income Statement,
Consolidated Statement of Comprehensive Income, Consolidated Statement of Changes in Equity and Consolidated Balance Sheet.