Hi, and welcome to part eight:
in this HSTalks lecture series
on Analyzing Financial Statements.
My name is David Bond.
If you've been following this series,
you may have noticed
as we look at
Qantas's financial statements,
they refer to the income statement,
and cash flow statement
not just as the income statement,
balance sheet, and cash flow statement,
but it's the consolidated
consolidated balance sheet,
and consolidated cash flow statement.
The reason for this
is that the information contained
in the annual report
is not just about one entity
but rather about an entire group.
According to Qantas's 2016
there are six operating segments,
Qantas Domestic, Qantas International,
Qantas Freight, Qantas Loyalty,
and Corporate in the Qantas group.
And there may well be
more than one legal entity
residing in each of those segments
and potentially some
which cut across them.
If somebody is interested
in investing in Qantas,
they are just interested
in investing in, say, Qantas Loyalty,
in how the entire Qantas group
as a whole is performing
because it's ultimately
the group performance
which is reflected
in the income statement
and Qantas's share price.
The consolidated financial statements
are simply an aggregate
of all the entities
which make up the Qantas group.