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AIR NEW ZEALAND GROUP
Notes to the Financial Statements (continued)
As at 30 June 2015
18
12. Investment in Other Entities
2015
$M
2014
$M
Investments in associates
Investments in joint ventures
Investments in other entities
422
2
1
46
1
1
425 48
The investment in Virgin Australia has been treated as an associate with effect from 4 July 2014 and the equity method of accounting applied.
Further details are set out in Note 11.
Subsidiaries
Significant subsidiaries comprise:
NAME PRINCIPAL ACTIVITY COUNTRY OF INCORPORATION
Air Nelson Limited Aviation New Zealand
Air New Zealand Aircraft Holdings Limited Aircraft leasing and financing New Zealand
Air New Zealand Associated Companies Limited Investment New Zealand
Air New Zealand Regional Maintenance Limited Engineering services New Zealand
Eagle Airways Limited Aviation New Zealand
Mount Cook Airline Limited Aviation New Zealand
All subsidiary entities above have a balance date of 30 June and are 100 percent owned.
11. Investment in Quoted Equity Instruments
Investments in quoted equity instruments are stated at fair value. Changes in the fair value of the investment in quoted equity
instruments, including any related foreign exchange component, are recognised through other comprehensive income where an
irrevocable election has been made at inception to do so. This election is made in order to ensure the appropriate representation of
long-term, strategic investments as distinct from those held for trading. The cumulative gains or losses held in other comprehensive
income are not transferred to profit or loss on derecognition or otherwise, although they may be transferred within equity.
2015
$M
2014
$M
Investment in Virgin Australia Holdings Limited
Balance at the beginning of the year
Acquisitions
Fair value changes recognised in other comprehensive income
Transfer to investments in associates
422
-
(5)
(417)
261
179
(18)
-
Balance at the end of the year - 422
On 4 July 2014, the Group gained representation on the Board of Directors of Virgin Australia Holdings Limited (‘Virgin Australia’). Until that
date, Air New Zealand continued to treat the investment as an investment in quoted equity instruments as opposed to an equity accounted
associate as the directors considered that the Group did not have the ability to exercise significant influence over Virgin Australia due to the
composition of other shareholdings and lack of representation on the Board. With effect from 4 July 2014, the investment has been treated
as an associate and the equity method of accounting applied. Revaluation losses accumulated in the Investment Revaluation Reserve were
transferred to Retained Deficit at the date of gaining significant influence. Further details are set out in Note 12.