Introduction

Group Structure

Organisational Overview

Background information on the structure of the Licensed Operator's organisation, business activities/broad lines of business and network architecture.

Accounting and Operational Systems

Details of the financial, accounting and operational systems used by the reporting organisation for the capture and generation of the Regulatory Financial Statements (overview of functionality).

Accounting Principles and Practices

General Accounting Principles and Policies

Accounting Principles Details of the accounting policies used by the operator in preparing the Regulatory Financial Statements. For property, plant and equipment, provide procedures outlining preparation of information on asset lives, labour, overhead, interest capitalisation and depreciation methods.

Deviations from SA GAAP or IAS

If the accounting policies and bases used in the preparation of the Regulatory Financial Statements differ from SA GAAP or lAS, full disclosure of the policies and bases adopted should be prominently disclosed here. Licensed Operator should also document the reason for adopting accounting policies or bases that differ from SA GAAP or lAS.

Related Party Transaction Disclosures

The party with whom the transaction occurs, the type of transaction, the bases of recording the transactions in the accounting ledgers and the bases of revaluing transactions.

Accounting Separation

Segments

A list of segments and a mapping to tariffs lodged for specific services that fall within each segment.

Accounting Separation Systems

Overview of accounting separation systems used, including inputs outputs and functionality of system.

Allocation Overview

An overview of the revenue, cost, asset and liability allocations adopted by the Licensed Operator.

Detailed Allocations

The detailed allocations adopted by the Licensed Operator and a mapping of the general ledger to the initial cost pools. Details of any studies, surveys or models that are used for allocation purposes. The Procedures Manual should provide worked examples of all of the allocation methods that are used including sample size, frequency of sampling, sampling method, etc.

WACC calculation

Details of the assumptions made, methods, values and sources of all variables used to calculate the WACC.

Administrative Framework

Procedures Manual Maintenance Procedures

Details of the procedures for maintenance and updating of the Maintenance Procedures Manual and associated internal controls.

Glossary

Definition of terms used in the Procedures Manual.