Acrobat reader has a very nice search function, if you search on "frequent" about a dozen sections of the report pop up, all quite enlightening. The accounting method is fully explained. QF changed accounting methods last year, and this resulted in a one-time liability of AUD 700 million for the FF plan.

In general FF plans are the most profitable product that airlines sell, and QFF is exceptionally profitable. Partly this is because the airline can control the burn rate and can make assumptions about what percentage of FF miles are redeemed. Historically this has been quite low (something like 7% for all airlines), but going up. Which is what you would expect, as the balances slowly accumulate year after year, and more people finally have enough miles to redeem. Only to find that there is nothing to redeem it on. You might want to search on The Economist, which had an insightful analysis of FF plans. Also discussed elsewhere on FT, in much more detail than this. I'm tired of the topic and won't say more, except the info is all publicly disclosed and readily available.