Tesco 2005 Annual Report Download - page 49

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Tesco PLC 47
Note 14 Fixed asset investments continued
The Group’s share of the joint ventures, as at 26 February 2005, was as follows:
Joint ventures in aggregate Tesco Personal Finance
2005 2004 2005 2004
£m £m £m £m
Fixed assets 717 348 8 6
Current assets 3,563 1,658 3,446 1,580
Creditors falling due within one year (3,371) (1,323) (3,120) (1,274)
Creditors falling due after more than one year (666) (389) (103) (103)
Net assets 243 294 231 209
There is no recourse to Group companies in respect of the borrowings of the joint ventures.
Tesco Personal Finance forms a substantial proportion of the gross assets and liabilities of the Group’s joint ventures in aggregate.
The following shows the Group’s share of the results of Tesco Personal Finance:
2005 2004
£m £m
Other operating income 201 166
Profit before tax 101 80
Taxation (30) (24)
Profit after taxation 71 56
Hymall
The Group acquired a 50% share in Hymall on 1 September 2004. Of the £145m cost of investment, goodwill arising of £140m
has been capitalised, and will be amortised over 20 years. The acquisition of the interest in Hymall comprised:
£m
Group share of original book value of net assets 20
Fair value adjustments to achieve consistency of accounting policies (15)
Fair value to the Group 5
Goodwill 140
Total cost 145
The principal fair value adjustments made to the net bookvalues of the assets and liabilities of Hymall comprise: converting from
cash accounting to accruals-based accounting; revaluation of stock; debtors and fixed assets; provision for onerous leases, and
recognition of deferred tax assets.
(c) The Group’s principal associate is:
Share of issued share capital, Country of incorporation and
Business loan capital and debt securities principal country of operation
GroceryWorks Holdings Inc. Internet Retailer 39% United States of America
The net assets and goodwill of associates are:
2005 2004
£m £m
Net assets 76
Goodwill 12 15
19 21