lease

Report prepared for
ACCG 224: Intermediate Financial Accounting

Changes to 'Lease' accounting and its impact on the financial position and the performance of Qantas

Table of Content

1. Introduction P.2
2. Glossary P.3
3. Discussion P.4
3.1 Description of the current lease contract P.4 3.1.1 Finance Leased and Hire Purchase Assets P.4 3.1.2 Operating Lease P.6
3.2 Summary of the proposed changes to lease accounting P7
3.3 Analysis P.8
4. Conclusion and Recommendation P.10
5. Referencing P.11

1. Introduction
Qantas Airways Limited (Qantas) is a for-profit company limited by shares, incorporated in Australia whose shares are publicly traded in the Australian Securities Exchange (ASX). It is engaged in the operation of the international and domestic air transportation services. According to the Qantas annual report (2013 P.6), it states that the statutory profit after tax amounts to $6 million and underlying profit before tax amounts for$192 million for the 2012/2013 financial year. Its internal performance can be reflected in the Consolidated Financial Statements, which are general purpose financial statements. Those statement including balance sheet, income statement, statement of changes in equity and statement of cash flow have been prepared in accordance with Australian Accounting Standard (AASBs) adopted by the Australian Accounting Standard Board (AASB) and the Corporations Act 2000. The Consolidated Financial Statements also comply with International Financial Reporting Standards (IFRSs) and interpretations adopted by the