Identify the relevant australian accounting standards

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Reference no: EM132765449

Qantas Airways Limited is the flag carrier of Australia and its largest airline by fleet size. Qantas Airways Ltd leases Aircraft from Boeing and Airbus for 20 years at a time. The lease agreement can be cancelled, but a significant penalty will be incurred by Qantas Ltd. The lease payments required 20 payments of equal value at the end of every year up to the twentieth year. On 20 August 2020, Qantas announced a $2 billion loss, with the coronavirus pandemic slashing its revenue by 21% for the year ended 30 June 2020. This result included a massive $1.4 billion writedown in the value of assets such as its Airbus 380 aircraft fleet.

In the media release announcing the loss, Qantas CEO Alan Joyce was quoted: "COVID will continue to have a huge impact on our business and we're expecting a significant underlying loss in FY [financial year] 21. Yet he remained optimistic about the longer-term prospects for the airline as the pandemic subsides'', (Qantas Group 2020).

The General Manager of Qantas Airways Ltd is aware of the required disclosures under AASB136 ($1.4 billion write-downs in the value of assets) and therefore asked you to advise him with a summary of the other relevant accounting standards to be applied under the financial reporting framework.

Problem 1: Identify the relevant Australian accounting standards and explain the impact of COVID on Qantas Airways financial reporting for Financial Year 21?

Reference no: EM132765449

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