Telstra 2008 Annual Report Download - page 134

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Telstra Corporation Limited and controlled entities
131
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
2008 2007 2008 2007
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238 149 229 129
Share based payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 25 28 25
Defined benefit plan expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24 198 239 197 238
Goods and services purchased
Included in our goods and services purchased are the following:
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,004 2,036 1,633 1,641
Rental expense on managed services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 922 518
Other expenses
Impairment losses:
- impairment in value of inventories. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 46 50 46
- impairment in value of trade and other receivables . . . . . . . . . . . . . . . . . . . . . 260 195 213 162
- impairment in amounts owed by controlled entities (b) (i) . . . . . . . . . . . . . . . .29 --247 173
- impairment in amounts owed by jointly controlled entities . . . . . . . . . . . . . . .29 -1--
- impairment in value of investments (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-36 55
- impairment in value of property, plant and equipment . . . . . . . . . . . . . . . . . .13 43 31 43 12
- impairment in value of software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 12 412 4
- impairment in value of other intangibles (b). . . . . . . . . . . . . . . . . . . . . . . . . . -118 -5
370 395 601 457
Reversal of impairment losses:
- reversal of impairment in value of inventories . . . . . . . . . . . . . . . . . . . . . . . . -(4) -(4)
- reversal of impairment in value of trade and other receivables . . . . . . . . . . . . . . (9) (2) (9) (2)
- reversal of impairment in amounts owed by controlled entities. . . . . . . . . . . . .29 --(2) (2)
(9) (6) (11) (8)
Rental expense on operating leases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 609 592 503 482
Net foreign currency translation gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (13) (7) (154) (52)
Service contracts and other agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,339 2,177 2,275 2,120
Promotion and advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 457 422 349 328
General and administration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,028 949 844 773
Other operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 465 402 485 417
5,246 4,924 4,892 4,517