Telstra 2009 Annual Report Download - page 126

Telstra Corporation Limited and controlled entities
111
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 entities 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
2009 2008 2009 2008
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219 238 210 229
Share based payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 28 23 28
Defined benefit plan expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24 229 198 229 197
Goods and services purchased
Included in our goods and services purchased are the following:
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,896 2,004 1,559 1,633
Rental expense on managed services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6925
Other expenses
Impairment losses:
- impairment in value of inventories. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 50 19 50
- impairment in value of trade and other receivables . . . . . . . . . . . . . . . . . . . . . 339 260 294 213
- impairment in amounts owed by controlled entities (i) . . . . . . . . . . . . . . . . . .29 --220 247
- impairment in value of investments (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4554 36
- impairment in value of property, plant and equipment . . . . . . . . . . . . . . . . . .13 23 43 23 43
- impairment in value of intangibles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 19 12 19 12
403 370 629 601
Reversal of impairment losses:
- reversal of impairment in value of trade and other receivables . . . . . . . . . . . . .10 (50) (9) (45) (9)
- reversal of impairment in amounts owed by controlled entities. . . . . . . . . . . . .29 ---(2)
- reversal of impairment in value of investments . . . . . . . . . . . . . . . . . . . . . . . . (6) ---
(56) (9) (45) (11)
Rental expense on operating leases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 614 609 483 503
Net foreign currency translation losses/(gains) . . . . . . . . . . . . . . . . . . . . . . . . . 16 (13) 136 (154)
Service contracts and other agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,389 2,339 2,308 2,275
Promotion and advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 379 457 286 349
General and administration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,038 1,028 829 844
Other operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 442 465 431 485
5,225 5,246 5,057 4,892