Valuing Information Technology Related Intangible Assets

Running head: FOUNDATIONS IN ACCOUNTING
FOUNDATIONS IN ACCOUNTING
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Foundations in Accounting1
Executive Summary
A detailed report of the airline company Qantas is focused and their current annual financial
report is evaluated to find out the non-current assets valuation and their depreciation values as
well. A short description about the company along with the industry under which it is operating
is also provided. Five consecutive years starting from 2015 to 2019 is evaluated for the purpose
of the trendline analysis specifically for intangible assets and property, plant and equipment.

Foundations in Accounting2
Table of Contents
1.1 Introduction...........................................................................................................................3
1.2 Discussion..................................................................................................................................3
1.3 Conclusion...............................................................................................................................12

Foundations in Accounting3
1.1 Introduction
Qantas Airways Limited is a well-known jet company globally and their non-current
asset also has shown increment for previous few years. In this report, a short description of the
company along with the industry under which it operates is provided. Five consecutive years are
taken for the analysis of the performance of their no-current assets specifically the intangible
assets and property, plant and equipment of the company. Here the trend will be analyzed
properly and why there have been increment or decrement will also be discussed in detail. The
method of amortization used by the company along with the method used for depreciation is also
specified in the annual report.
1.2 Discussion
Qantas Airways Limited jet company is known to be the third biggest in the whole world.
It is also called as the flag carrier for Australia and it also has biggest airline which is of the fleet
size for connection with international flights and international destinations. It was found in 16th
November, 1920 in Winton, Queensland, Australia. This name is formed from ‘QANTAS’ which
is originated from “Queensland and Northern Territory Aerial Services”. It was also considered
as the flying kangaroo initially. It is the Oneworld airline alliance’s founding member. This
company have flourished since its origination and trading their shares under Australian Stock
exchange (ASX: QAN). Revenue of the company was calculated at A$17.96 billion during 2019
and the operating income was at A$1.64 billion during the same year. During 2014, the Qantas
had Australian domestic market’s 65% shares and they also added almost 14.9% of every
passengers who were travelling from and to Australia. Qantas owned another airline which was
Jetstar Airways at a low cost (Investor.qantas.com., 2020). However, due to the current