CLAIM: Qantas has been shifting costs within the airline to make Jetstar look better and make Qantas International look worse financially.
FACT: This is a baseless claim that has never been substantiated. Qantas’ financial accounts are independently audited by KPMG and lodged with the Australian Securities Exchange. We have a legal, regulatory and moral responsibility to report accurate accounts. The claim that we would deliberately distort financial results is wrong.
source:
Qantas
Note the language, its very subtle, and its all about the language. This has been very carefully worded.
This is not a direct denial that cost shifting occurs, rather, the claim is not based on any facts presented thus far by any party.
This answer, however, does not preclude the possibility that cost shifting is occurring. It is simply saying that no evidence has been produced to support that claim. Of course, by not releasing vital piece of information (complete accounts) on the basis of "commercial in confidence" it is impossible to obtain the information to prove a case. They are well aware that it is impossible to test the claims. However, this statement is telling in that they have not issued a direct denial.
They could issue a statement that there is no revenue of cost shifting between entities, however they have chosen not to. Why not?
The current standard (
AASB 114 Segment Reporting) allow revenues and costs to be allocated between companies within a group structure, as noted in the accounts of each segment.
I have absolutely no doubt whatsoever that the accounts meet the Australian Standards and any audit would find this. However, without offering the complete accounts, it is impossible to validate or falsify the claims of legal cost shifting
between entities within the group.
Until there is an express denial that there is no allocation of cost & revenues between entities this remains an unanswered question.