2001 Qantas Financial Report

Notes to the FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2001
(z)
STATEMENTS OF CASH FLOWS
For the purposes of the Statements of Cash Flows, cash includes cash on hand, at bank and money market investments readily
convertible to cash, net of outstanding bank overdrafts and short-term cash borrowings (refer note 40).
(aa) BORROWING COSTS
Borrowing costs include interest, amortisation of discounts or premiums relating to borrowings, amortisation of ancillary
costs incurred in connection with arrangement of borrowings, foreign exchange losses net of hedged amounts on borrowings,
including trade creditors and lease finance charges. Borrowing costs are expensed as incurred unless they relate to qualifying assets.
Qualifying assets are assets which take more than 12 months to get ready for their intended use. Where funds are borrowed
generally, borrowing costs are capitalised using the average interest rate applicable to the Qantas Group’s debt facilities being
7.8 per cent per annum in the current year. During the year, borrowing costs totalling $13.0 million (2000: $11.1 million) were
capitalised into the cost of qualifying assets.
(ab) DEFERRED EXPENDITURE
Material items of expenditure are deferred to the extent that management consider it is probable that future economic benefits
embodied in the expenditure will eventuate and can be measured reliably, do not relate solely to revenue that has already been
brought to account and will contribute to the future earning capacity of the entity. The amount of expenditure deferred in the
Qantas Group Statement of Financial Position at 30 June 2001 is $12.3 million (2000: $7.2 million).
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12 QANTAS ANNUAL REPORT 2001