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Background:
COVID-19 has caused enormous disruption to the Australian and global economies. Most companies are operating under significantly different circumstances to those existing 12 months ago. In particular, the travel and tourism industry sector has been severely impacted.
The Australian Securities and Investments Commission (ASIC) requires corporate management to prudently review the measurement and recognition of the elements of the financial statements for the 30 June 2020 financial year, in response to emerging issues and changing circumstances that have impacted on businesses during the COVID-19 pandemic.
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The Qantas Limited (Qantas) audit committee is meeting with the external auditors shortly. Assume you are an accountant working for Qantas. The CEO has asked you to prepare a business report for the company's audit committee which:
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