$1b Recovery Plan
•
Impact of adoption of IFRIC Agenda Decision on Cloud Computing Arrangements
The adoption of IFRIC Agenda Decision on Cloud Computing Arrangements required restatement of
1H21 and FY21
The decision provides new guidance and requirements for assessing whether costs incurred to
implement these arrangements should be capitalised
This resulted in the derecognition of certain implementation costs which had been capitalised as
intangible assets under AASB 138 Intangible Assets, which are instead expensed under the IFRIC
Agenda Decision
Restated Underlying EBIT
$M
1H21 Impact of
1H21
FY21 Impact of
FY21
Reported Adoption Restated Reported Adoption Restated
Qantas Domestic
(337)
8
(329)
(590)
15
(575)
Qantas International
(291)
12
(279)
(575)
27
(548)
Jetstar Group
(328)
5
[323]
(550)
9
(541)
Qantas Loyalty
125
125
272
Corporate/Unallocated/
(57)
(57)
[82]
1
(81)
Eliminations
Underlying EBIT
(888)
25
[863]
(1,525)
52
(1,473]
I
272
The Group's previous accounting policy had been to
capitalise costs related to Cloud Computing Arrangements
in line with prevailing accounting standards and
interpretations where they meet the relevant criteria for
capitalisation
Following the adoption of the new guidance
-
-
Implementation costs, including cost to configure and
customise the cloud provider's application software,
are generally expensed
Where the cloud service supplier provides these
services
If distinct services, generally expensed as
incurred
If non-distinct (not separable from the cloud
computing arrangement itself), generally
expensed over contract term
Through implementing Cloud Computing
Arrangements, if the Group develops software code
that significantly enhances existing systems,
capitalisation may still occur
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