Telstra 2008 Annual Report Download - page 241

Telstra Corporation Limited and controlled entities
238
Notes to the Financial Statements (continued)
Transactions involving our controlled entities (continued)
(b) The Telstra Entity recorded dividend revenue during fiscal 2008
from Telstra Media Pty Limited of $127 million, Sensis Pty Ltd of $81
million and Telstra Services Solutions Holdings Limited of $48 million.
The Telstra Entity recorded dividend revenue of $186 million from
Telstra Media Holdings Pty Ltd in fiscal 2007.
(c) The profit before income tax expense of the Telstra Entity included
an impairment loss of $247 million (2007: $173 million) relating to a
movement in allowance for amounts owed by a controlled entity.
(d) The Telstra Entity and its Australian controlled entities have
formed a tax consolidated group, with a tax funding arrangement
currently in place. The amounts receivable or amounts payable to the
Telstra Entity under this arrangement are due in the next financial
year upon final settlement of the current tax payable for the tax
consolidated group. Refer to note 9 for further details on tax
consolidation.
(e) The Telstra Entity operates a current account with some of its
Australian controlled entities, being an internal group bank account
used to settle transactions with its controlled entities or between two
controlled entities. Cash deposit balances in the current account
owed to our controlled entities are recorded as loans. All loan
balances with our controlled entities are unsecured, with settlement
required in cash. Refer to note 18 for further discussion on our
borrowings.
Transactions involving our parent entity
On 24 November 2006, the Commonwealth of Australia sold
4,248,049,190 shares in Telstra Corporation Limited, which
represented 34.2% of the total share capital. The Commonwealth's
remaining 17.6% interest in Telstra was transferred to the
Commonwealth Future Fund in February 2007. As such, the
Commonwealth of Australia is no longer the ultimate parent and
controlling entity of the Telstra Group. Telstra Corporation Limited is
the parent entity in the Telstra Group comprising the Telstra Entity
and its controlled entities.
During fiscal 2007, we supplied telecommunications services to, and
acquired other services from, the Commonwealth of Australia, its
Departments of State, trading and other agencies. These transactions
were made within normal customer/supplier relationships on terms
and conditions no more favourable than those available to other
customers or suppliers. There were no exclusive rights to supply any
of these services.
During fiscal 2007, services provided to any one governmental
department or agency or the combination of all of these services in
total, did not represent a significant component of our operating
revenues.
29. Related party disclosures (continued)