Answer Happy

[Question] This is the part of the annual report.
Did they satisfy the disclosure requirements for PPEs as
per AASB 116? Crytically analyse it.
4 STATUTORY REMUNERATION DISCLOSURES FOR 2020/21 The statutory remuneration disclosures for the year ended 30 June 2021 ore detailed below. These are prepared in accordance with Australian Accounting Standards and differ from the 2020/21 remuneration outcomes on page 46. The differences arise due to the accounting treatment of share-based payments for the STIP and LTIP. The statutory disclosures include an accounting remuneration value for: - Prior years' STIP awards Accounting standards require STIP remuneration to be expensed (and therefore included as statutory remuneration) in financial years which differ from the year of Scorecard performance. Despite no awards being made under either the 2019/20 or the 2020/21 STIP, a value for STIP awards is still required to be included in the statutory remuneration table. This is due to the fact that deferred shares granted under the 2018/19 STIP have a future service period, during which the recipient must remain employed by the Group for the awards to vest. Therefore, the 2019/20 and 2020/21 statutory remuneration disclosures include a value for part of those prior year STIP awards. - LTIP awards that have not vested Accounting standards require LTIP remuneration to be expensed (and therefore included as statutory remuneration) notwithstanding that some of the Rights have not met the performance hurdles and have lapsed. The performance measures for the 2019-2021 LTIP, being Qantas' TSR relative to companies with ordinary shares included in the ASX100 and an airline peer group (Global Listed Airlines), were tested as at 30 June 2021. Qantas' three-year relative TSR performance was ranked 4th in the airline peer group and 70th in the ASX100. Based on this performance, 50 per cent vesting was achieved. Notwithstanding that the LTIP conditions were partially achieved, the CEO offered, and the Board agreed, to defer the decision until at least August 2022 as to whether his Rights will be forfeited or allowed to convert to shares. For Executive Management, 50 per cent of Rights awarded under the 2019-2021 LTIP vested and converted to shares, with the remaining Rights lapsing. Notwithstanding that 50 per cent of Rights lapsed, the Statutory Remuneration recognises an expense for 100 per cent of Rights under the 2019-2021 LTIP. Additionally. LTIP awards that will be assessed for vesting in future years are expensed over the three-year testing period. Therefore, the statutory disclosures include an accounting value for part of the 2020-2022 and the 2021-2023 LTIP awards. Statutory Remuneration Table - CEO and Executive KMP Incentive Plan-Accounting Accrual Other Benefits Equity-Settled Share-Based Payments Post- Other Termin- Base Pay Cash Deferred Sub- Non-Cash Employment Long-Term $'000s (Cash) Bonus Shares Rights Total Benefits Benefits Benefits Total Benefit Current Executives Alan Joyce 2021 1,778 237 3,072 5,087 2 53 146 201 Chief Executive Officer 1,606 2,411 4,620 4,758 Andrew David 1,696 48 1,804 CEO Qantas Domestic and International 2020 1,524 (54) 1,574 Gareth Evans 1,005 1,819 (2) 64 1,883 CEO Jetstar Group 621 1,643 Vanessa Hudson 2021 1,454 138 1,636 Chief Financial Officer 2020 384 218 6B0 (1) 140 Olivia Wirth 2021 1,443 1,584 CEO Qantas Loyalty 2020 635 171 1.226 51 1,371 Total 2021 5,396 5,559 11,499 12,195 2020 4,169 1,271 4,253 9,693 233 559 10,252 Former Executive Tino La Spina CEO International 1,447 from 1 October 2019 2020 749 201 583 1,533 35 52 10 97 1,630 Chief Financial Officer to 30 September 2019 STIP STIP LTIP Sub- ation Total 5,288 2020 603 28 57 53 56 138 108 2021 936 80 680 4 749 54 50 583 720 2021 2020 192 94 227 59 10 21 50 56 50 15 1,729 795 875 86 182 520 4 40 from 1 October 2019 36 105 820 78 74 802 567 57 69 420 15 94 35 141 145 696 544 360 309 301 17 2021 390 95 104 589 1 44 50 95 763
REMUNERATION REPORT (AUDITED) (CONTINUED) A reconciliation of the CEO's remuneration outcome to the statutory disclosures is detailed below as an example. CEO's Statutory Remuneration Disclosure to Remuneration Outcome for 2020/21 Reconciliation ($ 000s) Description Statutory Remuneration Disclosure 5,288 Accounting value of share-based payments The Statutory Remuneration Disclosure includes the accounting value of - Less: Accounting value for STIP share awards (237) share-based payments. Accounting standards require share-based Less: Accounting value for LTIP share awards payments to be amortised over the relevant performance and service (3,072) periods. For 2020/21, the Statutory Remuneration Disclosure includes: - A value resulting from the expense of deferred shares from the 2018/19 STIP awards. No value was included for the 2019/20 or 2020/21 STIP as the CEO did not receive an award under either of these plans. - A value resulting from the expense of LTIP Rights from the 2019- 2021, 2020-2022 and 2021-2023 LTIP awards. Statutory remuneration includes the full expense of LTIP Rights irrespective of whether performance conditions are achieved or expected to be achieved. For the 2019-2021 LTIP, the CEO offered, and the Board agreed, to defer the decision until at least August 2022 as to whether his Rights will be forfeited or allowed to convert to Shares. The CEO's LTIP outcome in 2020/21 is nil but a value is still included as statutory remuneration. If Rights convert to shares, the value of the award of the 2019-2021 LTIP will be disclosed in the Remuneration Outcome for that year. Testing for the 2020-2022 and 2021-2023 LTIP awards will be undertaken as at 30 June 2022 and 30 June 2023, respectively, to determine whether the CEO receives any shares under these awards. Current year STIP share awards and vesting of LTIP In a year where STIP share awards are made or LTIP awards vest, the awards Remuneration Outcomes disclosure includes: - Add: 2020/21 STIP share awards - The full value of STIP shares awarded even though these awards are - Add: 2019-2021 LTIP vesting still subject to a two-year deferral period and an additional one-year trading restriction - The full value of the shares that vested under the LTIP even where these shares are subject to an additional one-year trading restriction. No awards were made to the CEO in 2020/21 and therefore these values are nil. Remuneration Outcome - Total 1,979