Telstra 2011 Annual Report Download - page 224

Telstra Corporation Limited and controlled entities
209
Notes to the Financial Statements (continued)
Transactions involving our controlled entities (continued)
(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. As at 30 June 2011, $2,978 million
(2010: $2,984 million) related to loans owed by, and $1,832 million
(2010: 1,305 million) related to, loans payable to controlled
entities. We also have an allowance for amounts owed by
controlled entities of $2,773 million (2010: $2,665 million) as at 30
June 2011.
(f) At 30 June 2011, a $169 million (2010: $176 million) loan
provided to Telstra OnAir Holdings Pty Ltd was reclassified to
current following the market announcement that Telstra and
Vodafone Hutchison Australia will conclude their joint venture
agreement for the 3GIS network in 2012. Refer to note 26 for
further details. This loan has been provided to ensure committed
deferred consideration payments and funding calls from the 3GIS
Partnership can be met. The loan is an interest free loan.
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 2011 are detailed as
follows:
• we purchased pay television services amounting to $640 million
(2010: $539 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 $102 million
(2010: $84 million);
• purchases were made by the Telstra Group of $233 million
(2010: $270 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 $54 million (2010: $59 million).
(b) A $70 million (2010: $60 million) distribution was received from
our jointly controlled entity FOXTEL during the year.
29. Related party disclosures (continued)
Telstra Group
Year ended/As at
30 June
2011 2010
$m $m
Income from jointly controlled and associated entities:
Sale of goods and services (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197 200
Distribution from FOXTEL Partnership (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 60
Expenses to jointly controlled and associated entities:
Purchase of goods and services (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 884 918
Total amounts receivable at 30 June from:
Current
Jointly controlled and associated entities - trade receivables (a). . . . . . . . . . . . . . . . . . . . 410
Jointly controlled and associated entities - loans (c) . . . . . . . . . . . . . . . . . . . . . . . . . 35 -
39 10
Non current
Jointly controlled and associated entities - loans (c) . . . . . . . . . . . . . . . . . . . . . . . . . 5219
Allowance for amounts owed by jointly controlled and associated entities (c). . . . . . . . . . . . . . (5) (182)
-37
Movement in allowance for amounts owed by jointly controlled and associated entities:
Opening balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (182) (191)
Amounts reversed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147 -
Foreign currency exchange differences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 9
Closing balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) (182)
Total amounts payable at 30 June to:
Current
Jointly controlled and associated entities - payables (a) . . . . . . . . . . . . . . . . . . . . . . . 13 6