BUACC5932 - Corporate Accounting

BUACC5932 Corporate Accounting
Group Assignment

TABLE OF CONTENTS
Company- Introduction, Business & operating activities, Finances and Financial performance
....................................................................................................................................................4
The core business of Qantas Airways....................................................................................4
Airways industry in Australia.................................................................................................4
Analysis of the financial structure of the company................................................................4
Source of finance................................................................................................................4
Capital structure.................................................................................................................4
Key elements of financial performance..................................................................................4
The event that occurred after reporting date..........................................................................5
Disclosure of changes in accounting policies.........................................................................5
Assets – PPE and Intangibles.....................................................................................................5
Carrying amount of each class of Property, Plant, and Equipment reporting date................5
Accounting policies relating to Property, Plant, and Equipment...........................................5
Intangible assets reported by the company.............................................................................5
Accounting policies relating to Intangible Assets..................................................................6
Impairment Property, Plant, and Equipment, and Intangible Assets......................................6
References..................................................................................................................................7

LIST OF FIGURES
Figure 1: Optimum capital structure policy of Qantas Airways................................................4
Figure 2: Key financial indicators..............................................................................................4
Figure 3: Carrying amount of each class of Property, Plant, and Equipment............................5
Figure 4: Intangible assets of Qantas Airways...........................................................................5

COMPANY- INTRODUCTION, BUSINESS & OPERATING
ACTIVITIES, FINANCES AND FINANCIAL PERFORMANCE
The core business of Qantas Airways
The Qantas group is a solid, international aviation business having a high competitive edge,
delivering Australia while connecting the same to the world. Qantas Airways has developed
to be the largest home and foreign airline of Australia. It is widely referred to as the
dominating long-distance airways in the world and one of the powerful and competitive
brands within Australia. Qantas Airways major business is the customer transportation by
making use of two key airline brand which is; Qantas and Jetstar. Moreover, the core
business of the company is the transportation of passenger and air shipments (Qantas
Airways, 2018).Qantas Airways is engaged in the operations of multiple subsidiaries,
inclusive of QantasLink and Jetstar, along with this it has interests in related business,
inclusive of vacations, travelling operations and routed catering. Furthermore, the operations
of the company of subsidiary businesses with other airways and businesses in authorized
markets like Q Catering. The portfolio of the board of a group of subsidiary business varies
from Qantas Freight Enterprises to Qantas Frequent Flyer. The company has employed more
than 30,000 individuals with about 93% of them are Australian based.
Airways industry in Australia
Australian aviation industry has an immensely long past background, and presently it
possesses multiple airlines having operations in and around the worlds. The significance of
airline industry within Australia has intensely grown; it is because the nation is said as an
island as well as a developed economy. In this industry, the major competitors of Qantas are
Eastern Australia Airlines, West Australian Airways, Virgin Blue, Australian Air Express,
Maroomba Airlines, Sky trans Airlines, and Air Link (Qantas Airways, 2018). The growth of
Aviation industry provides an opportunity to a company such as expanding in more
international destinations especially in continent Asia and Tie-ups with other intercontinental
airlines for providing better service offering to the customers.
Analysis of the financial structure of the company
Left in the optimal capital structure, capturing a minimum level of liquidity, while making
sure there is the optimum management of long-term commitments. Along with this, it has
managed great accessibility to a range of further financial sources and maintaining maturity
returns,
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