Accounting Separation

The December 2006 amendments to the Telecommunications Act 2001 introduced new information disclosure requirements, which include the accounting separation of Telecom. These regulatory reporting requirements are different from, and in addition to, Telecom’s annual statutory reporting requirements.

Under Part 2B of the Act, the Commission must require Telecom (as defined by section 5 of the Act) to prepare and disclose information about the operation and behaviour of its network, wholesale and retail activities as if they were operated as independent or unrelated companies. The Act gives the Commission discretion to determine what information Telecom must provide, including the methodologies to be used in preparing the information. The information to be disclosed may include, among other things, cost information, asset valuations and non-financial performance measures.

History

The Commission’s first regulatory reporting requirements were issued on 25 March 2009 following periods of public consultation in 2008 and 2009.

Telecom published its first set of regulatory financial statements and regulatory reporting manual on 18 December 2009 relating to the financial year ending 30 June 2009 and are available on Telecom's website.

On 15 April 2010, the Commission published its first summary and analysis of Telecom’s regulatory financial statements. This summary and analysis (PDF) is intended to promote greater understanding of Telecom’s operations and behaviour, and any changes over time.

 

On 18 May 2010, the Commission published its Decision on Changes to the Telecom Regulatory Financial Statements Information Disclosure Requirements along with its new Telecom Accounting Separation Information Disclosure Requirements.

Telecom is required to publish its second set of regulatory financial statements and regulatory reporting manual by 31 December 2010.

Other sources of information

Related Documents