Publicly available 2018 half year results for a listed company state Jetstar results as:
1.936 Billion revenue, 318 Million EBIT.
Search for QANTAS AIRWAYS LIMITED DIRECTORS’ REPORT
ABN 16 009 661 901 HALF-YEAR ENDED 31 DECEMBER 2017
Keith, the listed entity is Qantas.
- The Qantas group has six operating segments.
- Qantas is broken into TWO segments, DOMESTIC and INTERNATIONAL
- Jetstar has ONE segment although it operates more aircraft, wonder why?
AASB 8 refers to Operating segments.
There is a threshold of revenue and other parameters that necessitate a segment being reported. JQ presumably do not meet these thresholds.
If JQ does not meet the threshold
MANAGEMENT can CHOOSE to report the JQ segment as Domestic and International if;
'Operating segments that do not meet any of the quantitative thresholds may be considered reportable, and separately disclosed, if management believes that information about the segment would be useful to users of the financial statements'
Qantas management prefer
not to report both segments. The mind boggles why not, particularly if it is as they claim, somehow a 'standout'. Many with whom I consult, say JQ is a standout, for all the wrong reasons.
Qantas management choose not to. Why not?
JQ has a role in the leisure segment, but it has grown beyond its paddock and is arguably a real drain on the performance of the Qantas segment.
As for the General Purpose Audit conducted by the big four, it shows nothing about how management assign costs. To see that would require a different sort of audit, the sort of audit Qantas would never CHOOSE to have...