Notes to the consolidated financial statements
Notes contents12. Investments in joint ventures and associates
Joint ventures
All figures in £ millions | 2009 | 2008 |
---|---|---|
At beginning of year | 13 | 11 |
Exchange differences | – | (4) |
Share of profit after tax | 4 | 6 |
Dividends | (3) | (5) |
Loan repayment | (3) | – |
Additions and further investment | 13 | 5 |
Transfer to subsidiary | (6) | – |
At end of year | 18 | 13 |
Investments in joint ventures are accounted for using the equity method of accounting and are initially recognised at cost. Investments at 31 December 2009 include goodwill of £11m (2008: £nil).
The aggregate of the Group’s share of its joint ventures’ assets (including goodwill) and liabilities, none of which are individually significant, are as follows:
All figures in £ millions | 2009 | 2008 |
---|---|---|
Assets | ||
Non-current assets | 15 | 6 |
Current assets | 11 | 21 |
Liabilities | ||
Current liabilities | (8) | (14) |
Net assets | 18 | 13 |
Income | 12 | 36 |
Expenses | (8) | (30) |
Profit after income tax | 4 | 6 |
Associates
All figures in £ millions | 2009 | 2008 |
---|---|---|
At beginning of year | 10 | 9 |
Exchange differences | 4 | (5) |
Share of profit after tax | 26 | 19 |
Dividends | (19) | (16) |
Additions | 1 | – |
(Reversal of distribution)/Distribution from associate in excess of carrying value | (7) | 6 |
Actuarial losses on retirement benefit obligations | (3) | (3) |
At end of year | 12 | 10 |
Investments in associates are accounted for using the equity method of accounting and are initially recognised at cost. There is no acquisition goodwill relating to the Group’s investments in associates.
The Group’s interests in its principal associates, all of which are unlisted, are as follows:
2009 All figures in £ millions | Country of incorporation | % interest held | Assets | Liabilities | Revenues | Profit |
---|---|---|---|---|---|---|
The Economist Newspaper Ltd | England | 50 | 116 | (116) | 161 | 22 |
Other | 42 | (30) | 50 | 4 | ||
Total | 158 | (146) | 211 | 26 |
2008 All figures in £ millions | Country of incorporation | % interest held | Assets | Liabilities | Revenues | Profit |
---|---|---|---|---|---|---|
The Economist Newspaper Ltd | England | 50 | 86 | (86) | 149 | 16 |
Other | 35 | (25) | 42 | 3 | ||
Total | 121 | (111) | 191 | 19 |
The interests held in associates are equivalent to voting rights.