Telstra 2007 Annual Report Download - page 147

Telstra Corporation Limited and controlled entities
144
Notes to the Financial Statements (continued)
(i) We have recognised impairment losses relating to the value of our
investments in controlled entities, jointly controlled and associated
entities, and other ent ities based on the value in use calculation. The
impairment loss in the value of investment in controlled entities was
eliminated on consolidation of the Telstra Group.
7.Profit from continuing operations
Telstra Group Telstra Entity
Year ended 30 June Year ended 30 June
2007 2006 2007 2006
Note $m $m $m $m
(a) Profit before income tax expense has been calculated
after charging/(crediting) the following items:
Labour
Included in our labour expenses are the following:
Employee redundancy (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149 534 129 516
Share based payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21 25 15 25 15
Defined benefit plan expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28 239 185 238 182
Goods and services purchased
Included in our goods and services purchased are the following:
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,036 1,421 1,641 1,087
Rental expense on managed services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 47 18 42
Other expenses
Impairment losses:
- impairment in value of inventories (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 53 46 53
- impairment in value of trade and other receivables (b) . . . . . . . . . . . . . . . . . . . 195 161 162 138
- impairment in amounts owed by controlled entities (b). . . . . . . . . . . . . . . . . .33 --173 382
- impairment in amounts owed by jointly controlled entities . . . . . . . . . . . . . . .33 12--
- impairment in value of investments (b) (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . --55 245
- impairment in value of property, plant and equipment (b). . . . . . . . . . . . . . . .14 31 69 12 69
- impairment in value of intangibles (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 122 66 964
395 351 457 951
Reversal of impairment losses:
- reversal of impairment in value of inventories . . . . . . . . . . . . . . . . . . . . . . . . (4) -(4) -
- reversal of impairment in value of trade and other receivables . . . . . . . . . . . . . . (2) (22) (2) (22)
- reversal of impairment in value of investments. . . . . . . . . . . . . . . . . . . . . . . . ---(15)
- reversal of impairment in amounts owed by controlled entities. . . . . . . . . . . . .33 --(2) -
(6) (22) (8) (37)
Rental expense on operating leases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 592 598 482 432
Net foreign currency translation (gains)/losses . . . . . . . . . . . . . . . . . . . . . . . . . (7) 2(52) (50)
Service contracts and other agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,177 1,836 2,120 1,796
Promotion and advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 422 356 328 285
General and administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 949 792 773 606
Other operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402 514 417 579
4,924 4,427 4,517 4,562