Telstra 2010 Annual Report Download - page 212

Telstra Corporation Limited and controlled entities
197
Notes to the Financial Statements (continued)
Transactions involving our jointly controlled and associated
entities
Interests in our jointly controlled and associated entities are set out
in note 26. Our transactions with our jointly controlled and
associated entities recorded in the income statement and
statement of financial position are as follows:
((a) We sold and purchased goods and services, and received
interest from our jointly controlled and associated entities. These
transactions were in the ordinary course of business and on normal
commercial terms and conditions.
Details of our individual significant transactions involving our jointly
controlled and associated entities during fiscal 2010 are detailed as
follows:
• we purchased pay television services amounting to $539 million
(2009: $428 million) from our jointly controlled entity FOXTEL.
The purchases were to enable the resale of FOXTEL services,
including pay television content, to our existing customers as
part of our ongoing product bundling initiatives. In addition, we
made sales to FOXTEL for our cost recoveries of $84 million
(2009: $75 million);
• purchases were made by the Telstra Group of $270 million
(2009: $308 million) from our jointly controlled entity Reach
Ltd (Reach) in line with market prices. These were for the
purchase of, and entitlement to, capacity and connectivity
services; and
• sales to Reach were made for international inbound call
termination services, construction and consultancy by the
Telstra Group of $59 million (2009: $69 million).
(b) A $60 million (2009: $100 million) distribution was received
from our jointly controlled entity FOXTEL during the year.
(c) Loans provided to jointly controlled and associated entities
relates mainly to loans provided to Reach of $182 million (2009:
$191 million) and the 3GIS Partnership (3GIS) of $37 million
(2009: $38 million).
The loan provided to Reach is an interest free loan and repayable
upon the giving of twelve months notice by both PCCW Limited and
us. We have provided for the non-recoverability of the loan as we
do not consider that Reach is in a position to be able to repay the
loan amount in the medium term.
The loan provided to 3GIS represents interest free funding for
operational expenditure purposes. In accordance with the
partnership agreement, the loan is repayable on dissolution of the
partnership and is at call.
29. Related party disclosures (continued)
Telstra Group
Year ended/As at
30 June
2010 2009
$m $m
Income from jointly controlled and associated entities:
Sale of goods and services (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 214
Distribution from FOXTEL Partnership (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 100
Expenses to jointly controlled and associated entities:
Purchase of goods and services (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 918 844
Total amounts receivable at 30 June from:
Current
Jointly controlled and associated entities - trade receivables (a). . . . . . . . . . . . . . . . . . . . 10 13
Non current
Jointly controlled and associated entities - loans (c) . . . . . . . . . . . . . . . . . . . . . . . . . 219 229
Allowance for amounts owed by jointly controlled and associated entities (c). . . . . . . . . . . . . . (182) (191)
37 38
Movement in allowance for amounts owed by jointly controlled and associated entities:
Opening balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (191) (161)
Foreign currency exchange differences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9(30)
Closing balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (182) (191)
Total amounts payable at 30 June to:
Current
Jointly controlled and associated entities - payables (a) . . . . . . . . . . . . . . . . . . . . . . . 67