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Financial Statements AnnualReport_04-05.book Page 227 Friday, September 2, 2005 10:39 PM Telstra Corporation Limited and controlled entities Telstra Corporation Limited and controlled entities Australian Business Number (ABN): 33 051 775 556 Financial Report Page as at 30 June 2005 Number Financial Statements Statement of Financial Performance . 228 Statement of Financial Position . 229 Statement of Cash Flows. 230 Statement of Changes in Shareholders’ Equity . 235 Notes to the Financial Statements Note 1 - Summary of accounting policies . 238 Note 2 - Revenue. 264 Note 3 - Profit from ordinary activities . 265 Note 4 - Income tax expense . 270 Note 5 - Segment information . 272 Note 6 - Earnings per share . 280 Note 7 - Dividends . 281 Note 8 - Cash assets. 283 Note 9 - Receivables. 284 Note 10 - Inventories . 286 Note 11 - Investments . 287 Note 12 - Property, plant and equipment . 289 Note 13 - Intangible assets . 294 Note 14 - Other assets . 296 Note 15 - Payables . 297 Note 16 - Interest-bearing liabilities . 298 Note 17 - Provisions. 302 Note 18 - Contributed equity . 304 Note 19 - Employee share plans . 305 Note 20 - Expenditure commitments . 321 Note 21 - Contingent liabilities and contingent assets . 324 Note 22 - Superannuation commitments . 326 Note 23 - Investments in controlled entities . 328 Note 24 - Investments in joint venture entities and associated entities . 338 Note 25 - Directors’ remuneration - salaries and other benefits. 346 Note 26 - Executives’ remuneration - salaries and other benefits . 349 Note 27 - Related party, directors’ and specified executives’ disclosures . 352 Note 28 - Events after balance date. 358 Note 29 - Additional financial instruments disclosures . 359 Note 30 - United States generally accepted accounting principles disclosures . 368 Directors’ Declaration . 393 This financial report combines the disclosure requirements for both Australian and United States generally accepted accounting principles. Independent Audit Reports . 394 227 AnnualReport_04-05.book Page 228 Friday, September 2, 2005 10:39 PM Telstra Corporation Limited and controlled entities Statement of Financial Performance for the year ended 30 June 2005 Telstra Group Telstra Entity Year ended 30 June Year ended 30 June 2005 2005 2004 2003 2005 2004 Note $m US$m $m $m $m $m Ordinary activities Revenue Sales revenue. 2 22,161 16,882 20,737 20,495 19,587 18,996 Other revenue (excluding interest revenue) . 2,3 496 378 543 1,121 357 391 22,657 17,260 21,280 21,616 19,944 19,387 Expenses Labour . 3 3,693 2,813 3,218 3,204 2,916 2,807 Goods and services purchased . 3 4,147 3,159 3,554 3,713 2,894 2,684 Other expenses. 3 4,055 3,089 4,255 4,504 3,666 3,844 11,895 9,061 11,027 11,421 9,476 9,335 Share of net (profit)/loss from joint venture entities and associated entities . 24 (9) (7) 78 1,025 - - 11,886 9,054 11,105 12,446 9,476 9,335 Earnings before interest, income tax expense, depreciation and amortisation (EBITDA) . 10,771 8,206 10,175 9,170 10,468 10,052 Depreciation and amortisation. 3 3,766 2,869 3,615 3,447 3,298 3,228 Earnings before interest and income tax expense (EBIT) . 7,005 5,337 6,560 5,723 7,170 6,824 Interest revenue . 2 103 78 55 84 103 95 Borrowing costs . 3 839 639 767 879 851 843 Net borrowing costs. 736 561 712 795 748 748 Profit before income tax expense . 6,269 4,776 5,848 4,928 6,422 6,076 Income tax expense. 4 1,822 1,388 1,731 1,534 1,777 1,697 Net profit . 4,447 3,388 4,117 3,394 4,645 4,379 Outside equity interests in net loss . - - 135 - - Net profit available to Telstra Entity shareholders. 4,447 3,388 4,118 3,429 4,645 4,379 Other valuation adjustments to equity Net exchange differences on translation of financial statements of non-Australian controlled entities . (43) (33) 21 (161) - - Reserves recognised on equity accounting our interest in joint venture entities and associated entities . 3 2 (5) (18) - - Increase to opening retained earnings on adoption of new accounting standard . - - -1,415 - - Valuation adjustments attributable to Telstra Entity shareholders and recognised directly in equity . (40) (31) 16 1,236 - - Total changes in equity other than those resulting from transactions with Telstra Entity shareholders as owners . 4,407 3,357 4,134 4,665 4,645 4,379 ¢ US¢ ¢¢ Basic and diluted earnings per share (cents per share) . 6 35.5 27.0 32.4 26.6 Total dividends paid/declared (cents per share). 7,28 40.0 30.0 26.0 27.0 The notes following the financial statements form part of the financial report. 228 AnnualReport_04-05.book Page 229 Friday, September 2, 2005 10:39 PM Telstra Corporation Limited and controlled entities Statement of Financial Position as at 30 June 2005 Telstra Group Telstra Entity As at 30 June As at 30 June 2005 2005 2004 2005 2004 Note $m US$m $m $m $m Current assets Cash assets . 8 1,540 1,174 687 1,360 543 Receivables . 9 3,609 2,749 3,608 3,566 3,258 Inventories . 10 232 177 229 194 206 Other assets. 14 796 606 803 679 687 Total current assets . 6,177 4,706 5,327 5,799 4,694 Non current assets Receivables . 9 240 183 740 290 1,047 Inventories . 10 15 11 10 15 10 Investments - accounted for using the equity method . 11 49 37 40 44 32 Investments - other . 11 - - 80 6,029 5,435 Property, plant and equipment. 12 23,351 17,789 22,863 21,573 21,600 Intangibles - goodwill . 13 2,287 1,742 2,104 12 16 Intangibles - other. 13 1,581 1,204 1,501 182 220 Other assets. 14 2,610 1,988 2,328 2,332 2,160 Total non current assets . 30,133 22,954 29,666 30,477 30,520 Total assets. 36,310 27,660 34,993 36,276 35,214 Current liabilities Payables. ..
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