Re: Accounting Issues: Year Ending 30 June 2021 From: Jason Alba (J.Alba@Qantas.com.au) Sent: 20 March 2021 To: Araneda Jackson (A.Jackson@Hgroup.com.au) Dear Araneda, Thank you for your phone call this morning; as agreed, I am emailing you regarding our briefly discussed accounting issues. By the way, to assist the Management team in our decision-making process, could you please make sure you reference any relevant sources relating to your advice, for example, AASBs, Corporations Act, and relevant websites? QANTAS is currently in negotiations with a couple of lenders to borrow a substantial amount of money to fulfil the cash flow requirements for the next few years. The banks have expressed concerns about the total valuation of our total assets. They are concerned about the debt to asset ratio and need to see a few more assets before they approve the loan. Therefore, we were thinking of capitalising on the QANTAS name and recognise some brand/goodwill value in our books. After all, we are the flying kangaroo the pride and shine of Australia. There is no doubt that QANTAS is one of the most famous names in Australia (almost a household name), and we want to make the most of that. Could we value the brand ourselves and recognise that amount as an asset? Would there be any tax consequences? We could get an external valuation as well to keep everyone happy. At the most recent executive meeting, there was a lot of confusion about impairment (to be honest, I dont even know what it is and others at the meeting were also confused). We recruited a new chief accountant, Catherine Rose, during the year, and she suggested that it is mandatory to conduct impairment testing for some assets. She said shed get to us with a summary of what is required, but can you please shed some light on this? None of the executive team knows what it is; therefore, a brief would be excellent! Please provide a simple explanation. We did a quick search, and the discussion was too technical for us. At the same meeting, we also discussed the latest leases standard that came into effect in April 2021. We would like to understand better the right to control the use of an asset requirement. Could you please summarise how to decide whether we control the asset or not? As you know, most of the aeroplanes we use are currently under lease, and we are the only one who uses these aeroplanes. But we also know that if we fail to make any repayments, then the lessor has the right to cease these assets. Does this mean we dont have the right over these assets? Some clarity here would be great! Please respond by letter (not email) as I would like to present your views to our board. I look forward to hearing from you shortly. Regards Jason Jason Alba General Manager, Qantas Airways Ltd Level 1, 222 King Street, Sydney NSW 2000

what are the technical content of your advice and the explanation on each of the issues, the calculations, and the sources used?