Telstra 2008 Annual Report Download - page 112

Telstra Corporation Limited and controlled entities
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Notes to the Financial Statements (continued)
2.1 Changes in accounting policies
The following accounting policy changes occurred during the year
ended 30 June 2008.
(a) Amendment to Key Management Personnel disclosures
AASB 2008-4: "Amendments to Australian Accounting Standard - Key
Management Personnel Disclosures by Disclosing Entities" became
applicable to annual reporting periods ending on or after 30 June
2008.
This amendment provides relief for disclosing entities from
duplicating Key Management Personnel remuneration disclosure
requirements prescribed in the Corporations Act 2001 and AASB 124
"Related Party Disclosures" in both the financial report and in the
Directors’ Report.
Telstra has adopted AASB 2008-4 for the year ended 30 June 2008, with
Key Management Personnel remuneration disclosures being provided
in the Remuneration Report, which is part of the Directors’ Report.
This amendment is disclosure only and does not have an impact on
our financial results.
(b) Reinstatement of options in Australian Accounting Standards
AASB 2007-4: “Amendments to Australian Accounting Standards
arising from ED 151 and Other Amendments” became applicable to
annual reporting periods beginning on or after 1 July 2007. We have
applied this accounting standard in our financial report for the year
ended 30 June 2008.
This standard amends a number of existing Australian Accounting
Standards by re-introducing optional accounting treatments
contained in International Financial Reporting Standards (IFRSs) that
were previously deleted by the Australian Accounting Standards
Board (AASB). These options have not resulted in any changes to our
accounting policies, as our existing policies are considered to provide
the most relevant and reliable information to users.
(c) Segment reporting
AASB 8: “Operating Segments” was approved by the AASB in February
2007 and replaces AASB 114: “Segment Reporting”. We have elected
to early adopt and apply this standard in our financial report for the
year ended 30 June 2008.
AASB 8 requires entities to measure and report operating segments
based on their internal management reporting structure. This has
resulted in some changes to our identification of reportable segments,
the measurement of segment results, and the level of information
disclosed regarding our segments.
Comparative segment information has been restated to comply with
AASB 8. Refer to note 5 for further details.
(d) Presentation of financial statements
AASB 101: “Presentation of Financial Statements” was revised by the
AASB in September 2007. We have elected to early adopt and apply
this standard in our financial report for the year ended 30 June 2008.
The revision of the standard affects the presentation of the financial
statements. There is no impact on our financial results, financial
position or cash flows as a result of this standard. The purpose of the
changes is to aggregate information in the financial statements on
the basis of shared characteristics. All non owner changes in equity
are now aggregated and presented in a Statement of Comprehensive
Income and all owner changes in equity are now presented in a
Statement of Changes in Equity.
The revision also changes the title of other financial statements; the
Balance Sheet is now known as the Statement of Financial Position
and the Cash Flow Statement is now known as the Statement of Cash
Flows.
(e) Customer loyalty programmes
AASB Interpretation 13: “Customer Loyalty Programmes” is effective
from 1 July 2008, however we have elected to early adopt and apply
this interpretation in our financial report for the year ended 30 June
2008.
The interpretation covers situations in which an entity, as part of a
sales transaction, awards credits to customers that can be redeemed
for products and services in the future. It requires entities to recognise
these credits as a separately identifiable component of revenue,
which is deferred at the date of the initial sale and recognised as
revenue when the credits are redeemed.
Telstra’s current accounting policy for revenue arrangements with
multiple deliverables, as detailed in note 2.17, complies with the
requirements of this interpretation. As such there is no impact on our
financial results, financial position or cash flows as a result of this
interpretation.
2. Summary of accounting policies