Telstra 2007 Annual Report Download - page 239

Telstra Corporation Limited and controlled entities
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Notes to the Financial Statements (continued)
Transactions involving our controlled entities (continued)
Details of our individual significant transactions involving our
controlled entities during fiscal 2007 are detailed as follows:
• the Telstra Entity received procurement fees from its controlled
entity Sensis Pty Ltd for the use of Yellow Pages® and White Pages®
trademarks amounting to $642 million (2006: $647 million). As at
30 June 2007, the Telstra Ent ity recorded revenue received in
advance amounting to $334 million (2006: $332 million) for the use
of these trademarks;
• the Telstra Entit y paid management fees t o its controlled entity
Sensis Pty Ltd amounting to $261 million (2006: $218 million) for
undertaking agency and contract management services for the
nat ional directory service; and
• the Telstra Entity received income from its controlled entity Telstra
Multimedia Pty Ltd amounting to $300 million (2006: $292 million)
for access to ducts that store the national hybrid fibre coaxial (HFC)
cable network.
(b) The Telstra Entity recorded dividend revenue during fiscal 2007
from Telstra Media Holdings Pty Ltd of $186 million. In 2006 the
Telstra Entity recorded dividend revenue from Telstra International
Limited of $360 million and Network Design and Construction Limited
of $200 million.
(c) The profit before income tax expense of the Telstra Entity included
an impairment loss of $173 million (2006: $382 million) relating to a
movement in allowance for amounts owed by a controlled entity.
(d) The Telst ra Ent ity and its Australian controlled entities have
formed a tax consolidated group, wit h a tax funding arrangement
currently in place. The amounts receivable or amounts payable to the
Telstra Entity under this arrangement are due in the next financial
year upon final settlement of the current tax payable for the tax
consolidated group. Refer to note 9 for further details on tax
consolidation.
(e) The Telstra Entity operat es a current account with some of its
Australian cont rolled entities, being an internal group bank account
used to settle transactions with its controlled entit ies or between two
controlled entities. Cash deposit balances in the current account
owed to our controlled entities are recorded as loans. All loan
balances wit h our controlled entities are unsecured, with settlement
required in cash. Refer to note 18 for further discussion on our
borrowings.
Transactions involving our parent entity
On 24 November 2006, the Commonwealt h of Australia sold
4,248,049,190 shares in Telstra Corporation Limited, which
represent ed 34.2% of the total share capital. The Commonwealth's
remaining 17.6% interest in Telstra was transferred to the
Commonwealth Future Fund in February 2007. As such, the
Commonwealth of Australia is no longer the ultimate parent and
controlling entity of the Telstra Group. Telstra Corporation Limit ed is
the parent entity in the Telstra Group comprising the Telstra Entity
and its controlled entities.
During fiscal 2006, we supplied telecommunications services to, and
acquired other services from, the Commonwealth of Australia, its
Departments of St ate, trading and other agencies. These transactions
were made within normal customer/supplier relationships on terms
and conditions no more favourable than those available to other
customers or suppliers. There were no exclusive rights to supply any
of these services.
During fiscal 2007, services provided to any one governmental
department or agency or the combination of all of these services in
total, did not represent a significant component of our operating
revenues.
33. Related party disclosures (continued)