Telstra 2010 Annual Report Download - page 185

Telstra Corporation Limited and controlled entities
170
Notes to the Financial Statements (continued)
(a) Jointly controlled and associated entities in which we own more
than 50% equity
• We own 80% of the equity of FOXTEL Cable Television Pty Ltd.
This entity is disclosed as a jointly controlled entity as the other
equity shareholders have participating rights that prevent us
from dominating the decision making of the Board of Directors.
Effective voting power is restricted to 50% and we have joint
control.
• We own 100% of the equity of Telstra Super Pty Ltd, the trustee
for the Telstra Superannuation Scheme (Telstra Super). We do
not consolidate Telstra Super Pty Ltd as we do not control the
Board of Directors. We have equal representation with
employee representatives on the Board. Our voting power is
limited to 44%, which is equivalent to our representation on the
Board. The entity is therefore classified as an associated entity
as we have significant influence over it.
• We own 100% of the equity of Telstra Foundation Ltd (TFL). TFL
is limited by guarantee (guaranteed to $100) with Telstra
Corporation Limited being the sole member. We did not
contribute any equity to TFL on incorporation. TFL is the trustee
of the Telstra Community Development Fund and manager of
the Telstra Kids Fund. We do not consolidate TFL as we do not
control the Board. Our voting power on the Board is limited to
38%, which is equivalent to our representation on the Board.
(b) Other changes in jointly controlled and associated entities
During the period, m.Net Corporation Limited merged with Mercury
Mobility Ltd and was renamed Mnet Group Limited. As a result of
the merger, our investment in Mnet Group Limited is 12.7% at 30
June 2010 and this investment is no longer classified as a jointly
controlled entity.
During the period, Beijing Huaxin Target Information Co Ltd was
acquired as part of the acquisition of Dotad Media Holdings Limited
(Dotad).
(c) Fair value of investments in listed jointly controlled and
associated entities
• The fair value of our investment in Keycorp Limited at 30 June
2010 is $15 million (2009: $13 million).
(d) Dividends received
• A $1 million dividend was received from Keycorp Limited during
the year (2009: $2 million).
(e) Jointly controlled and associated entities with different balance
dates
The following jointly controlled and associated entities have
different balance dates to our balance date of 30 June for fiscal
2010:
• Reach Ltd - 31 December;
•TNAS Limited - 31 March;
•3GIS Pty Ltd - 31 December;
• 3GIS Partnership - 31 December;
• Bridge Mobile Pte Ltd - 31 March;
• Australia-Japan Cable Holdings Limited - 31 December; and
• Beijing Huaxin Target Information Co Ltd - 31 December.
Financial reports prepared as at 30 June are used for equity
accounting purposes. Our ownership interest in jointly controlled
and associated entities with different balance dates is the same at
that balance date as 30 June unless otherwise noted.
(f) Share of net profits/(losses)
26. Investments in jointly controlled and associated entities (continued)
Telstra Group
Year ended 30 June
2010 2009
$m $m
Net profit/(loss) from jointly controlled
and associated entities has been
contributed by the following entities:
Associated entities
- Keycorp Limited . . . . . . . . . . . 24
- LinkMe Pty Ltd (sold in February 2009) -(1)
23