77 / 136
75
10
NOTE 10
INVESTMENTS IN ASSOCIATES
Accounting policy –
Investments in associates
Associates are equity accounted, with the initial investment being increased/(decreased) by the Group’s share
of the associate’s profits/(losses) as recognised in the income statement, movements in their reserves (other
comprehensive income) and decreased by dividends received. Dividends from associates are not recognised in
the consolidated income statement.
As the accounting policy for Investments in associates is considered key to understanding the Group’s results and
financial position, the detailed accounting policy is set out in the basis of consolidation at the beginning of this
financial report (refer to page 56).
2016
2015
$’000
$’000
Non-Current Assets
Equity accounted associates
1,265,214
1,088,592
The equity accounted carrying amount of an associate does not reflect the
fair value of the Group’s investment in the associate. Details of the fair value of
investments in listed associates are provided in note 10b.
a) Movements in equity accounted carrying values
Carrying amount at 1 August
1,088,592
944,726
New investments during the period
6,287
13,059
Reclassification of Long term equity investment to equity accounted associate
2,803
–
Fair value loss on initial recognition as an equity accounted associate
(1,682)
–
Gains on deemed disposal of equity accounted associates
118,850
2,076
Share of profits after income tax, before write downs
122,503
95,079
Impairment (expense)/reversal of equity accounted associates
(7,554)
72,947
Dividends received/receivable
(72,722)
(69,339)
Add back share of dividends received by associate
23,028
22,178
Share of associates (decrement)/increment in reserves
(12,910)
7,866
Disposal of equity accounted associate
(1,981)
–
Equity accounted carrying amount at 31 July
1,265,214
1,088,592