Tesco 2007 Annual Report Download - page 64

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Notes to the financial statements continued
Note 7 Discontinued operation and assets classified as held for sale
2007 2006
£m £m
Assets of the disposal group – 114
Non-current assets classified as held for sale 408 54
Total non-current assets classified as held for sale and assets of the disposal group 408 168
Total liabilities directly associated with the disposal group – (86)
Total net assets classified as held for sale 408 82
Discontinued operation
On 31 May 2006, the Group sold its business operation in Taiwan to Carrefour as part of a transaction to acquire Carrefour’s
Czech business.
The net result of the Taiwanese business has been presented as a discontinued operation in the Income Statement for both the
current and prior years, and the net assets of the business were classified as a disposal group on the Balance Sheet as at 25 February 2006.
The table below shows the results of the Taiwan business that are included in results of the Group for the current and prior periods
included within discontinued operation.
Income Statement
2007 2006
£m £m
Revenue 46 134
Cost of sales (36) (111)
Administrative expenses (14) (32)
Net finance costs – (1)
Share of profit of discontinued joint venture –1
Operating loss before tax of discontinued operation (4) (9)
Profit on disposal of discontinued operation 22 –
Profit/(loss) before tax of discontinued operation 18 (9)
Tax relating to operating loss – (1)
Profit/(loss) for the year from discontinued operation 18 (10)
The table below shows the amounts relating to the discontinued operation that are included within the Group cash flows for
the year.
Cash Flow Statement
2007 2006
£m £m
Net cash flows from operating activities (7) (6)
Net cash flows from investing activities (2) (6)
Net cash flows from financing activities 11 10
2 (2)
62 Tesco PLC Annual report and financial statements 2007 Find out more at www.tesco.com/corporate