Qantas 2016 Annual Report Download - page 65

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Notes to the Financial Statements continued
For the year ended 30 June 2016
4 NET FINANCE COSTS
2016
$M
2015
$M
FINANCE INCOME
Interest income on financial assets measured at amortised cost 64 83
Interest income from investments accounted for under the equity method – 5
Unwind of discount on receivables 1 2
Total finance income 65 90
FINANCE COSTS
Interest expense on financial liabilities measured at amortised cost (268) (324)
Interest paid and capitalised on qualifying assets124 17
Fair value hedges
Fair value adjustments on hedged items –(2)
Fair value adjustments on derivatives designated in a fair value hedge – 2
Total finance costs on financial liabilities (244) (307)
Unwind of discount on provisions and other liabilities
Employee benefits (21) (22)
Other liabilities and provisions (19) (20)
Total unwind of discount on other liabilities and provisions (40) (42)
Total finance costs (284) (349)
Net finance costs (219) (259)
1 The borrowing costs are capitalised using the average interest rate applicable to the Qantas Group’s debt facilities, being 6.8 per cent (2015: 6.3 per cent).
5 INCOME TAX
2016
$M
2015
$M
RECOGNISED IN THE CONSOLIDATED INCOME STATEMENT
Current income tax expense
Current year – foreign (2) (2)
Total current income tax expense (2) (2)
Deferred income tax expense
Origination and reversal of temporary differences 26 (104)
Utilisation of tax losses (413) (117)
(387) (221)
Adjustments for prior year (6) (6)
Total deferred income tax expense (393) (227)
Total income tax expense in the Consolidated Income Statement (395) (229)
63
QANTAS ANNUAL REPORT 2016