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Notes to the Consolidated Financial Statements

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.

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