Telstra 2013 Annual Report Download - page 146

NOTES TO THE
FINANCIAL STATEMENTS
(CONTINUED)
144 Telstra Annual Report 2013 Telstra Corporation Limited and controlled entities
Contributed equity
Our contributed equity represents our authorised and issued fully
paid ordinary shares. Each of our fully paid ordinary shares carries
the right to one vote at a meeting of the Company. Holders of our
shares also have the right to receive dividends and to participate in
the proceeds from sale of all surplus assets in proportion to the total
shares issued in the event of the Company winding up.
We have 12,443,074,357 (2012: 12,443,074,357) authorised fully
paid ordinary shares on issue.
Share loan to employees
The share loan to employees account represents the outstanding
balance of the non recourse loans provided to our employees under
the Telstra Employee Share Ownership Plan (TESOP) Trusts
(TESOP97 and TESOP99). Refer to note 27 for further details
regarding these plans.
Shares held by employee share plans
The shares held by employee share plans represent the cost of
shares held by the Telstra Growthshare Trust (Growthshare) in
Telstra Corporation Limited. The purchase of these shares has
been fully funded with contributions and intercompany loans from
Telstra Corporation Limited. As at 30 June 2013, the number of
shares totalled 26,774,268 (2012: 29,324,833). These shares are
excluded from the calculation of basic and diluted earnings per
share. Refer to note 3 for further details.
Net services received under employee share plans
The net services received under the employee share plans account
is used to record the cumulative value of our options, performance
rights, restricted shares, incentive shares, Directshare and
Ownshare issued under Growthshare. Contributions by Telstra
Corporation Limited to Growthshare are also included in this
account.
(a) During the financial year, 9,258,700 (2012: nil) loan shares, held
by the TESOP Trust Trustee on behalf of former employees, who
elected not to repay the loan until the share price is sufficient to
recover the loan amount and associated sale costs, were sold as
required under the terms of the TESOP99 Trust deed. The sale was
effected in an off market transaction at market price to the
Growthshare Trust. This resulted in a decrease in our share loan to
employees account of $42 million and a corresponding increase in
shares held by employee share plans. There was no cash flow
impact on the Telstra Group. Refer to note 27(d) for further details.
19. SHARE CAPITAL
Telstra Group
As at 30 June
2013 2012
$m $m
Contributed equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,793 5,793
Share loan to employees (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (20) (67)
Shares held by employee share plans (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (129) (145)
Net services received under employee share plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 54
5,711 5,635