Telstra 2010 Annual Report Download - page 97

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82
Telstra Corporation Limited and controlled entities
(i) The foreign currency translation reserve is used to record
exchange differences arising from the conversion of the non-
Australian controlled entities’ financial statements into Australian
dollars. This reserve is also used to record our percentage share of
exchange differences arising from equity accounting our non-
Australian investments in jointly controlled and associated entities.
(ii) The cash flow hedging reserve represents, where a hedge
qualifies for hedge accounting, the effective portion of gains or
losses on remeasuring the fair value of the hedge instrument.
These gains or losses are transferred to the income statement
when the hedged item affects income, or in the case of forecast
transactions, are included in the measurement of the initial cost of
property, plant and equipment or inventory.
(iii) The consolidation fair value reserve represents our share of the
fair value adjustments to TelstraClear Limited net assets upon
acquisition of a controlling interest. The reserve balance is
amortised over the useful life of the underlying revalued assets.
(iv) The general reserve represents other items we have taken
directly to equity.
Statement of Changes in Equity
for the year ended 30 June 2010
Telstra Group Reserves
Foreign
currency Consolid- Non-
transla- Cashflow ation General controll-
Share tion hedging fair value reserve Retained ing
capital (i) (ii) (iii) (iv) profits interests Total
$m $m $m $m $m $m $m $m
Balance at 1 July 2008. . . . . . 5,534 (598) 164 20 4 6,893 228 12,245
Profit for the year . . . . . . . . . -----4,07334,076
Other comprehensive income . . . . - 214 (71) - - (383) 23 (217)
Total comprehensive income
for the year . . . . . . . . . . . . - 214 (71) - - 3,690 26 3,859
Dividends . . . . . . . . . . . . . -----(3,474) (39) (3,513)
Non-controlling interests on
acquisitions . . . . . . . . . . . . ------4848
Transfers to retained profits . . . . ---(6)-6--
Amounts repaid on share
loans provided to employees . . . . 11------11
Prior year labour expense
settled in equity . . . . . . . . . . 8------8
Share-based payments . . . . . . . 23------23
Balance at 30 June 2009. . . . . 5,576 (384) 93 14 4 7,115 263 12,681
Profit for the year . . . . . . . . . -----3,883 57 3,940
Other comprehensive income . . . . -(98) 64 - - (111) (10) (155)
Total comprehensive income
for the year . . . . . . . . . . . . -(98) 64 - - 3,772 47 3,785
Dividends . . . . . . . . . . . . . -----(3,474) (10) (3,484)
Non-controlling interests on
acquisitions . . . . . . . . . . . . ------12 12
Transfers to retained profits . . . . - - - (5) - 5 - -
Amounts repaid on share
loans provided to employees . . . . 9------9
Share-based payments . . . . . . . 5------5
Balance at 30 June 2010. . . . . 5,590 (482) 157 9 4 7,418 312 13,008