Financial Performance and Capital Structure of Qantas Airways Limited

BUACC5932 Corporate Accounting
Group Assignment

TABLE OF CONTENTS
Introduction......................................................................................................................................3
business and its activities along with financial performance...........................................................3
Overview of the company............................................................................................................3
Industry of the Qantas Airways Limited and its competitors......................................................4
Capital structure of Qantas Airways limited...............................................................................4
Key elements of the financial performance of the Qantas Airways limited................................5
Subsequent events of the Qantas Airways limited......................................................................5
Changes in the accounting policies of Qantas Airways limited..................................................5
Tangible and intangible assets of the Qantas Airways limited........................................................6
Carrying amount of property, plant and equipment as on 30 June 2018.....................................6
Accounting policies relating to property, plant and equipment...................................................6
Intangible assets...........................................................................................................................7
Accounting policies related to intangible assets..........................................................................8
Impairment of assets....................................................................................................................8
Conclusion.......................................................................................................................................9
References........................................................................................................................................9

LIST OF TABLES
Table 1: Key elements of financial performance.............................................................................6
Table 2: Carrying amount of property, plant and equipment..........................................................7
Table 3: Carrying amount of intangible assets................................................................................8
Table 4: Impairment loss of tangible and intangible asset in 2018...............................................10

INTRODUCTION
The present study is based on the analyses of the business operations and the activities along
with the financial performance and the capital structure of the Qantas Airways limited.
BUSINESS AND ITS ACTIVITIES ALONG WITH FINANCIAL
PERFORMANCE
Overview of the company
Qantas was established in 1920, in the Queensland (Australia), and at present it is considered as a
prevalent domestic as well as international airline of Australia, and the third oldest airline of the
world. Reputation and the brand image of the company have been increased significantly due to
the superiority in safety, operational reliability, engineering and maintenance and the customer
services (Shaffner, Mills, and Mills, 2017). The main operation of the company is providing
transportation services to the customers, further for facilitating the airline transportation service
company is using two complementary airlines brands such as Qantas and Jetstar.
The company is consisting of different operating segments, and all operating segments of the
company are working together as a combined portfolio. The different segments of the company
are enumerated as below-
a) Qantas Domestic- it is the major transportation of the Domestic Australian market and
has above 40% market share measured by capacity. This segment of the company by its
brand, network and product, target the business and premium class customers who give
value for the full-service experience. Further for increasing the customer satisfaction, this
segment continues in investing in onboard Wi-Fi rollout underway and also developing
the domestic lounges.
b) Qantas international- it provides the major transportation services in Australia and out of
Australia, and also targeting the business class and the premium class customers who
value the services.