Telstra 2015 Annual Report Download - page 171

Notes to the Financial Statements (continued)
NOTE 29. RELATED PARTY DISCLOSURES
Telstra Corporation Limited and controlled entities 169
_Telstra Financial Report 2015
29.1 Transactions involving our controlled entities
Interests in controlled entities are set out in note 25. Transactions
with our controlled entities recorded in the income statement and
statement of financial position were 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 individually significant transactions involving our
controlled entities during financial year 2015 were as follows:
• the Telstra Entity received income from its controlled entity
Telstra Multimedia Pty Ltd amounting to $375 million (2014:
$367 million) for access to ducts that store the hybrid fibre
coaxial (HFC) cable network
• the Telstra Entity paid for international connectivity and
management services to Telstra International Limited
amounting to $264 million (2014: $249 million).
In February 2014, we divested 70 per cent of our directories
business, Sensis Pty Ltd and its controlled entities (Sensis Group).
As a result, the financial year 2014 included only eight months of
transactions with the Sensis Group and any transactions
subsequent to the date of disposal, have been included in
transactions with our joint ventures and associated entities. The
transactions with Sensis Group as a controlled entity were as
follows:
• the Telstra Entity received procurement fees from Sensis Pty
Ltd for the use of Yellow Pages** and White Pages**
trademarks amounting to $63 million
• the Telstra Entity paid management fees to Sensis Pty Ltd
amounting to $190 million for undertaking agency and contract
management services for the national directory service.
(b) During financial year 2015, the Telstra Entity recorded dividend
revenue, including mainly:
• $240 million (2014: $150 million) from Telstra Media Pty Ltd
• $1,343 million (2014: $64 million) from Telstra Holdings Pty Ltd.
(c) The profit before income tax expense of the Telstra Entity
includes impairment loss of $150 million (2014: $89 million
reversal of impairment loss) relating to a movement in allowance
for amounts owed by controlled entities.
(d) The Telstra Entity and its Australian controlled entities have
formed a tax consolidated group, with a tax funding arrangement
currently in place. The amounts receivable or amounts payable to
the Telstra Entity under this arrangement are due in the next
financial year upon final settlement of the current tax payable for
the tax consolidated group. Refer to note 9 for further details.
Telstra Entity
Year ended/As at
30 June
2015 2014
$m $m
Income from controlled entities
Sale of goods and services (a) 399 541
Dividend revenue (b) 1,586 217
Expenses to controlled entities
Purchase of goods and services (a) 634 713
Finance costs 39
Total current amounts receivable at 30 June
Controlled entities - receivables (d) 71 60
Controlled entities - loans (e)(f) 3,493 3,466
Allowance for amounts owed by controlled entities (e) (3,224) (3,074)
340 452
Movement in allowance for amounts owed by controlled entities
Opening balance (3,074) (3,163)
Reversal of impairment loss (c) -89
Impairment loss (c) (150) -
Closing balance (e) (3,224) (3,074)
Total current amounts payable at 30 June
Controlled entities - payables (a)(d) 87 77
Controlled entities - loans (e) 1,695 3,826
1,782 3,903