Telstra 2007 Annual Report Download - page 158

Telstra Corporation Limited and controlled entities
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Notes to the Financial Statements (continued)
(a) Trade receivables and allowance for doubtful debts (continued)
As at 30 June 2007, trade receivables with a carrying amount of
$1,044 million (2006: $977 million) for the Telstra Group and $756
million (2006: $736 million) for the Telstra Ent ity were past due but not
doubt ful. These trade receivables comprise customers who have a
good debt history and are considered recoverable.
(i) This allowance in fiscal 2006 relates to the total redundancy and
restructuring provision raised in 2006. Refer to note 7(b) for further
details.
(b) Finance lease receivable
We entered into finance leasing arrangements predominantly for
communication assets dedicat ed to solutions management and
out sourcing services that we provide to our customers. The average
term of finance leases ent ered into is between 2 - 5 years (2006: 2 - 5
years).
The interest rat e inherent in the leases is fixed at the contract date for
the entire lease term. The average effective interest rate contracted is
approximat ely 8.1% (2006: 8.1%) per annum.
(c) Amounts owed by jointly controlled and associated entities
In fiscal 2007, amounts owed by jointly controlled and associated
entities relates mainly to loans provided to Reach Ltd (Reach) of $183
million (2006: $210 million) and the 3GIS Part nership (3GIS) of $38
million (2006: $14 million). An allowance for the total loan provided to
Reach has been recognised. Refer to note 33 for further details.
11. Trade and other receivables (continued)
Telstra Group Telstra Entity
As at 30 June As at 30 June
2007 2006 2007 2006
$m $m $m $m
Amounts receivable under finance leases
Within 1 year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 40 55 40
Within 1 to 5 years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 51 99 51
Total minimum lease payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154 91 154 91
Less unearned finance income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (18) (12) (18) (12)
Present value of minimum lease payments . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 79 136 79
Included in the financial statements as:
Current finance lease receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 20 46 20
Non current finance lease receivables. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 59 90 59
136 79 136 79