1.Statutory profit and total comprehensive income
The Qantas report (2015) released that $3M NCI contributes to the total statutory profit for the year. It represents that around 0.5% profits are attributed to the NCI. And there is no NCI contribution during year 2014. Therefore, most of the profit are generated by Qantas and the NCI portion of the group is not material to the groups’ revenue performance. In Qantas consolidation statement of comprehensive income (2015), NCI only contributes to 0.7% of total comprehensive income by making $4M income. In addition, there is no NCI contribution during year 2014 as well.
Equity in balance sheet and divide performance related to NCI
Qantas has decided to increase the portion of interest held in subsidiaries or they bought new subsidiaries. Under the equity statement, dividend paid to NCI is $4M an acquisition of NCI is $1M. It shows the same situation of consolidation cash flow statement. Qantas did not pay dividends but its subsidiary did. From the notes of Qantas financial statement (2015), for the year ended 30 June 2015, $4M dividends which happened in 2014 were declared and paid to NCI. Acquisition, disposal of controlled entities and recording method Under note 28 of Qantas Report (2015), Qantas acquired 51% controlling interest and the goodwill of $8M was recognized on acquisition. It added to the intangible assets of consolidation balance sheet. Qantas Report (2015) note 37 also mentioned that the NCI in the results and equity of controlled entities are shown separately in the consolidation statements. It represented by non-controlling items at each consolidation financial statements. In addition, when the group loss the control of a controlled entity, the assets and liabilities of the controlled entity and relate NCI and other components of equity will be derecognized. 2.Group structure Qantas also has 5 subsidiaries that are material to the Qantas group in 2015 and 2016. Qantas has majority voting rights in respect of each of the material subsidiaries. Note 1 of Annual Report (2015) also reveals that materiality has been assessed based on the contribution of statutory profit/loss to the group. While there is not a complete list of all subsidiaries, but only a list of wholly owned subsidiaries under cross guarantee’s note. And also did not show clear name of the 5 material subsidiaries which Qantas has majority voting rights. Name of subsidiaries to NCI and percentage At Qantas website, there are 6 main subsidiaries in 2016. They are QantasLink, Q Catering, Qantas Freight, Express Ground Handling, Qantas Holidays and Jetstar (Subsidiary Companies 2016). However, there is not a full list of names of subsidiaries at Report (2015), much less the percentage excluding wholly owned one. Comparison with AASB 12 Qantas Report (2015) reveals the profit and loss allocated to NCI in consolidation income statements, accumulated NCI and summarized financial information about the subsidiaries at notes, which are mentioned before. It follows the requirement of standards (AASB 12 paragraph 12 (e), (f), (g)). Moreover, name of subsidiaries, principle place, proportions of ownership and voting rights also need to disclosure. (AASB 12 paragraph 12 (a), (b), (c), (d)). But there is not any information relate to these requirements in the Report (2015). It delivers an inadequacy perspective of Qantas information disclosure. Qantas are implementing transformation plan, the more information they released, the more risk that competitors …show more content…
It represents that Qantas’ associate or join venture has a loss during FY2015. And Qantas is entitled to a percentage which is normally greater than 20% and less than 50% share of this loss. From the financial report (2015) consolidation income statement and note 14, Qantas share of this loss is $40M totally and less than the loss at FY2014 (66). The entry passed in the records of Qantas at current report year recognizes as loss a share of the investees’ loss and decrease the investment in associate or join venture (Loftus 2015).
From the report, the general losses from associates or joint ventures are disclosed, while users cannot know where the loss generate and which company makes loss. The details of loss also missing. Identify which segment makes loss can generate the controllable of loss. For example, some loss could be controlled and that means there is management problem within the company.
The Qantas report (2015) released that $3M NCI contributes to the total statutory profit for the year. It represents that around 0.5% profits are attributed to the NCI. And there is no NCI contribution during year 2014. Therefore, most of the profit are generated by Qantas and the NCI portion of the group is not material to the groups’ revenue performance. In Qantas consolidation statement of comprehensive income (2015), NCI only contributes to 0.7% of total comprehensive income by making $4M income. In addition, there is no NCI contribution during year 2014 as well.
Equity in balance sheet and divide performance related to NCI
Qantas has decided to increase the portion of interest held in subsidiaries or they bought new subsidiaries. Under the equity statement, dividend paid to NCI is $4M an acquisition of NCI is $1M. It shows the same situation of consolidation cash flow statement. Qantas did not pay dividends but its subsidiary did. From the notes of Qantas financial statement (2015), for the year ended 30 June 2015, $4M dividends which happened in 2014 were declared and paid to NCI. Acquisition, disposal of controlled entities and recording method Under note 28 of Qantas Report (2015), Qantas acquired 51% controlling interest and the goodwill of $8M was recognized on acquisition. It added to the intangible assets of consolidation balance sheet. Qantas Report (2015) note 37 also mentioned that the NCI in the results and equity of controlled entities are shown separately in the consolidation statements. It represented by non-controlling items at each consolidation financial statements. In addition, when the group loss the control of a controlled entity, the assets and liabilities of the controlled entity and relate NCI and other components of equity will be derecognized. 2.Group structure Qantas also has 5 subsidiaries that are material to the Qantas group in 2015 and 2016. Qantas has majority voting rights in respect of each of the material subsidiaries. Note 1 of Annual Report (2015) also reveals that materiality has been assessed based on the contribution of statutory profit/loss to the group. While there is not a complete list of all subsidiaries, but only a list of wholly owned subsidiaries under cross guarantee’s note. And also did not show clear name of the 5 material subsidiaries which Qantas has majority voting rights. Name of subsidiaries to NCI and percentage At Qantas website, there are 6 main subsidiaries in 2016. They are QantasLink, Q Catering, Qantas Freight, Express Ground Handling, Qantas Holidays and Jetstar (Subsidiary Companies 2016). However, there is not a full list of names of subsidiaries at Report (2015), much less the percentage excluding wholly owned one. Comparison with AASB 12 Qantas Report (2015) reveals the profit and loss allocated to NCI in consolidation income statements, accumulated NCI and summarized financial information about the subsidiaries at notes, which are mentioned before. It follows the requirement of standards (AASB 12 paragraph 12 (e), (f), (g)). Moreover, name of subsidiaries, principle place, proportions of ownership and voting rights also need to disclosure. (AASB 12 paragraph 12 (a), (b), (c), (d)). But there is not any information relate to these requirements in the Report (2015). It delivers an inadequacy perspective of Qantas information disclosure. Qantas are implementing transformation plan, the more information they released, the more risk that competitors …show more content…
It represents that Qantas’ associate or join venture has a loss during FY2015. And Qantas is entitled to a percentage which is normally greater than 20% and less than 50% share of this loss. From the financial report (2015) consolidation income statement and note 14, Qantas share of this loss is $40M totally and less than the loss at FY2014 (66). The entry passed in the records of Qantas at current report year recognizes as loss a share of the investees’ loss and decrease the investment in associate or join venture (Loftus 2015).
From the report, the general losses from associates or joint ventures are disclosed, while users cannot know where the loss generate and which company makes loss. The details of loss also missing. Identify which segment makes loss can generate the controllable of loss. For example, some loss could be controlled and that means there is management problem within the company.