Annex 3: Significant Items and Their Allocation

This Document is Archived

Discussion Paper: Telecommunications Information Disclosure

Resources and Networks Branch

[ Last Updated 17 November 2005 ]

It is mandatory to allocate the specified items only to the "local loop" or "other telecommunications" business if there is a tick in the relevant column. Where only one column is ticked, the item is to be entirely allocated to that business.

Item	Local Loop Business	Other
Current assets:
Bank, cash, short-term investments
Trade debtors
Other debtors
Inventory/stock
Work in progress
Prepayments
Total current assets

Fixed assets:
Distribution system fixed assets
Telephone exchange fixed assets
Local telephone exchange links
Assets providing services in "other telecommunications" business
- e.g. cellular services, national calling, international calling
Capital works in progress
Customer billing and information assets
Motor vehicles
Office equipment
Land
Building
Total fixed assets
Intangible assets
Long-term investments
Total assets

Current liabilities:
Accounts payable
Accrued payroll
Other accruals
Dividend provision
Provisions
Total current liabilities

Funding:
Long-term debt
Shareholders' funds
Total equity and liabilities

Revenue:
Revenue from "other telecommunications" businesses
Revenue from local loop business, including directories
Equipment sales
Rental income
Income from interest on short-term investments
Income from interest on long-term investments
Dividend income
Gain (loss) on investments
Total revenue

Expenditure:
Cost of equipment sales
Payment to "other" (transfer payments)
Payment to external contractors
Maintenance
Employee salaries and redundancies
Customer billing and information expense
Depreciation on:
- Distribution system fixed assets
- Telephone exchange fixed assets
- Local telephone exchange links
- Assets providing services in "other telecommunications" business
- Capital works in progress
- Customer billing and information assets
- Motor vehicles
- Office equipment
- Buildings
- Other assets
- Amortisation of intangible assets
Corporate and administration:
- Telephone, fax
- Insurance and security
- Accounting, treasury, auditing, bank fees, directors' fees, trust fees and expenses, donations, photocopying, subscriptions, and any other corporate and administration expenses
Motor vehicle expenses
Office equipment maintenance
Land and building expenses
Human resource expenditure - FBT - ACC - Superannuation - Training - Recruitment
Marketing/advertising
Bad debts and collection costs
Research and development
Consultancy and legal expenses
Abnormal items
Total expenditure
Earnings before interest and tax
Interest expense
Taxation expense
Net profit after tax

Other
Financial hedges¹²

12 Depending on the circumstances and the treatment of financial hedges in the financial statements, these may be classified as assets, liabilities, expenses and/or revenue items.

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Printed: 26/11/2009