Ruscoe wrote:Just had a read of the 2017 Financials of Qantas, and found the following of interest, so somebody else might:
All figures at cost in Au$;
Cost value of fleet + engines 21billion, but fleet now depreciated to 10billion
Cost value of spares 835million now depreciated to 281million
Capital committments(I would think aircraft make up the biggest chunk of this buit that wasn't clear) 11.4 billion based on AU$of .76 v US$
They deprteciate their aircraft over a range of 2.5 years to 20 years but spares 15 to 20years
What I found most interesting is that purchase of slots is given at $35 million at cost. I thought it would be higher but Qantas probably bought some of their slots a long time ago.
AIrcraft probably includes notable parts that go on aircraft and some of these could have a short life. The frames, engines etc would have a life at the other end of the
The slots are the LHR slots. At $35m theyre probably under their current value.
Re asset values, the accounting standards allow for assets to be held at depreciated cost (called carrying value), or fair value (which is a market value). Even if at depreciated cost the asset must be assessed to see if its value is equal to or less than market value.