Telstra 2012 Annual Report Download - page 226

Telstra Corporation Limited and controlled entities
196
Notes to the Financial Statements (continued)
Transactions involving our controlled entities
Interests in controlled entities are set out in note 25. Our
transactions with our controlled entities recorded in the income
statement and statement of financial position are as follows:
(a) The Telstra Entity sold and purchased goods and services and
received and paid interest to its controlled entities. These
transactions are in the ordinary course of business and are on
normal commercial terms and conditions.
Details of our individual significant transactions involving our
controlled entities during fiscal 2012 are detailed as follows:
• the Telstra Entity received procurement fees from its controlled
entity Sensis Pty Ltd for the use of Yellow Pages and White
Pages trademarks amounting to $355 million (2011: $522
million). As at 30 June 2012, the Telstra Entity recorded revenue
received in advance amounting to $90 million (2011: $170
million) for the use of these trademarks;
• the Telstra Entity received income from its controlled entity
Telstra Multimedia Pty Ltd amounting to $356 million (2011:
$347 million) for access to ducts that store the hybrid fibre
coaxial (HFC) cable network;
• the Telstra Entity paid management fees to its controlled entity
Sensis Pty Ltd amounting to $334 million (2011: $338 million) for
undertaking agency and contract management services for the
national directory service; and
• the Telstra Entity paid for international connectivity and
management services to Telstra International Limited amounting
to $136 million (2011: nil).
(b) During fiscal 2012 the Telstra Entity recorded dividend revenue
mainly from the following entities:
• $550 million (2011: nil) from Sensis Pty Ltd;
• $50 million (2011: $70 million) from Telstra Media Pty Limited;
• $64 million (2011: $41 million) from Telstra Holdings Pty Ltd; and
• nil (2011: $43 million) from Telstra Business Systems Pty Ltd.
(c) The profit before income tax expense of the Telstra Entity
includes an impairment loss of $175 million (2011: $108 million)
relating to a movement in allowance for amounts owed by a
controlled entity.
29. Related party disclosures
Telstra Entity
Year ended/As at
30 June
2012 2011
$m $m
Income from controlled entities:
Sale of goods and services (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 892 991
Dividend revenue (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 668 164
Expenses to controlled entities:
Purchase of goods and services (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 602 433
Finance costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 24
Total amounts receivable at 30 June from:
Current
Controlled entities - receivables (a)(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 985 788
Controlled entities - loans (e)(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,331 3,147
Allowance for amounts owed by controlled entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,948) (2,773)
1,368 1,162
Non current
Controlled entities - loans (g). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-
Movement in allowance for amounts owed by controlled entities:
Opening balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,773) (2,665)
Impairment loss (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (175) (108)
Closing balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,948) (2,773)
Total amounts payable at 30 June to:
Current
Controlled entities - payables (a)(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214 217
Controlled entities - loans (e)(h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,492 1,832
1,706 2,049