Air New Zealand 2016 Annual Report Download - page 20

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Notes to the Financial Statements (continued)
As at 30 June 2016
18
AIR NEW ZEAL AND ANNUAL FINANCIAL RESULTS 2016
13. Investment in Other Entities
2016
$M
2015
$M
Investments in associates
Investments in joint ventures
Investments in other entities
76
2
1
422
2
1
79 425
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
TEAL Insurance Limited Captive insurer New Zealand
All subsidiary entities above have a balance date of 30 June and are 100 percent owned.
Associates and Joint Ventures
Significant associates and joint ventures comprise:
NAME RELATIONSHIP % OWNED PRINCIPAL ACTIVITY COUNTRY OF BALANCE DATE
INCORPORATION
Christchurch Engine Centre (CEC) Associate 49 Engineering services New Zealand 31 December
ANZGT Field Services LLC Joint Venture 51 Engineering services United States 30 June
11Ants Analytics Group Limited Joint Venture 50 Data analytics New Zealand 31 March
Prior to 30 March 2016 the Group recognised its interest in Virgin Australia Holdings Limited as an investment in an associate. The shareholding
as at 30 March 2016 was 25.9 percent (30 June 2015: 25.9 percent). The company was incorporated in Australia with the principal activity of
Aviation. Further details are provided in Note 3.
On 22 January 2016, the Group disposed of its 50 percent joint venture interest in Pacific Leisure Group Limited. No gain or loss was
recognised on disposal.
Investments in associates and joint ventures are accounted for using the equity method and are measured in the Statement of
Financial Position at cost plus post-acquisition changes in the Group’s share of net assets, less dividends. Goodwill relating to
associates and joint ventures is included in the carrying amount of the investment.
If the carrying amount of the equity accounted investment exceeds its recoverable amount, it is written down to the latter.
When the Group’s share of accumulated losses in an associate or joint venture equals or exceeds its carrying value, the Group
does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate or joint venture.