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12. Investments in joint ventures and associates
Joint ventures
All figures in £ millions | 2007 | 2006 |
---|---|---|
At beginning of year | 12 | 12 |
Exchange differences | – | (3) |
Share of profit after tax | 4 | 3 |
Dividends | (8) | (4) |
Additions and further investment | 3 | 4 |
At end of year | 11 | 12 |
Investments in joint ventures are accounted for using the equity method of accounting and are initially recognised at cost.
The aggregate of the Group’s share in its joint ventures, none of which are individually significant, are as follows:
All figures in £ millions | 2007 | 2006 | |
---|---|---|---|
Assets | |||
Non-current assets | 3 | 3 | |
Current assets | 23 | 24 | |
Liabilities | |||
Current liabilities | (15) | (15) | |
Net assets | 11 | 12 | |
Income | 61 | 52 | |
Expenses | (57) | (49) | |
Profit after income tax | 4 | 3 |
Associates
All figures in £ millions | 2007 | 2006 |
---|---|---|
At beginning of year | 8 | 24 |
Exchange differences | (1) | (1) |
Share of profit after tax | 19 | 21 |
Dividends | (24) | (41) |
Additions | 1 | – |
Distribution from associate in excess of carrying value | 6 | 5 |
At end of year | 9 | 8 |
Investments in associates are accounted for using the equity method of accounting. 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, were as follows:
2007 | Country of incorporation | % Interest held |
Assets | Liabilities | Revenues | Profit |
---|---|---|---|---|---|---|
All figures in £ millions | ||||||
The Economist Newspaper Ltd | England | 50 | 63 | (63) | 131 | 15 |
Other | 30 | (21) | 56 | 4 | ||
Total | 93 | (84) | 187 | 19 |
2006 | Country of incorporation | % Interest held |
Assets | Liabilities | Revenues | Profit |
---|---|---|---|---|---|---|
All figures in £ millions | ||||||
The Economist Newspaper Ltd | England | 50 | 64 | (64) | 122 | 18 |
Other | 28 | (20) | 48 | 3 | ||
Total | 92 | (84) | 170 | 21 |
The interest held in associates is equivalent to voting rights.