Financial Statements




2156 NEW ZEALAND GAZETTE No. 97

TELECOM CENTRAL LIMITED AND SUBSIDIARY

NOTES TO THE FINANCIAL STATEMENTS

(CONTINUED)

15 SEGMENTAL REPORTING

The company’s principal business activity is the provision of telecommunication services, constituting more than 90% of total operating revenues, operating earnings and identifiable assets.

The company’s business is conducted in New Zealand and is therefore within one geographical area for reporting purposes.

16 ACQUIRED SUBSIDIARY

As stated in Note 1 (a) Telecom Central Limited acquired with effect from 1 April 1990 the shares and net assets of Telecom Midland Limited. The effect of the acquisition on the assets and liabilities of the Company as at 1 April 1990 was:

Increase in Assets

$ Million
Cash, accounts receivable and prepayments 95.1
Prepaid taxation 4.5
Inventories 14.5
Fixed asset 429.1
543.2

Increase in Liabilities and Shareholders’ Funds

$ Million
Accounts payable and accruals 45.9
Proposed dividends 24.4
Deferred tax provision 1.7
Pre-acquisition retained earnings 12.2
84.2
459.0

The purchase price was $373.8 for those net assets purchased and $85.2 million for the ordinary and preference shares acquired, with settlement to be in cash, funded by debt and shares.



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🏭 Telecom Central Limited Financial Statements (continued from previous page)

🏭 Trade, Customs & Industry
Telecommunications, Financial Reporting, Segmental Reporting, Acquired Subsidiary, Assets, Liabilities, Shareholders' Funds