Tesco 2009 Annual Report Download - page 121

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119
FINANCIAL STATEMENTS
Tesco PLC Annual Report and Financial Statements 2009
To find out more go to
www.tesco.com/annualreport09
Note 32 Related party transactions continued
Purchases from associates include £1,171m (2008 – £766m) of fuel purchased from Greenergy International Limited.
ii) Non-trading transactions
Sales to Loans to Loans from Injection of
related parties related parties related parties equity funding
2009 2008 2009 2008 2009 2008 2009 2008
£m £m £m £m £m £m £m £m
Joint ventures 465 652 262 173 20 10 – 8
Transactions between the Group and the Group’s pension plans are disclosed in note 28.
A number of the Group’s subsidiaries are members of one or more partnerships to whom the provisions of the Partnerships and Unlimited Companies
(Accounts) Regulations 1993 (‘Regulations’) apply. The accounts for those partnerships have been consolidated into these accounts pursuant to
Regulation 7 of the Regulations.
On 19 December 2008, the Group formed a property joint venture with Tesco Pension Trustees. The limited partnership contains three superstores
which have been sold from and leased back to Tesco. The Group sold assets for net proceeds of £199m to the joint venture which had a net book value
of approximately £107m. The Group’s share of the profit realised from this transaction is included within profit arising on property-related items in 2008/9.
On 15 August 2008, the Group formed a property joint venture with the Universities Superannuation Scheme. The limited partnership contains four
superstores which have been sold from and leased back to Tesco. The Group sold assets for net proceeds of £222m to the joint venture which had a net
book value of £136m. The Group’s share of the profit realised from this transaction is included within profit arising on property-related items in 2008/9.
Another smaller transaction with BP Pension Trustees was completed in June 2008 where £44m of assets were transferred.
On 20 March 2007, the Group formed a property joint venture with The British Land Company PLC. The limited partnership contains 21 superstores
which have been sold from and leased back to Tesco. The Group sold assets for net proceeds of £652m to the joint venture which had a net book value
of approximately £350m. The Group’s share of the profit realised from this transaction is included within profit arising on property-related items in 2007/8.
iii) Transactions with key management personnel
Only members of the Board of Directors of Tesco PLC are deemed to be key management personnel. It is the Board who have responsibility for
planning, directing and controlling the activities of the Group. Key management personnel compensation is disclosed in the audited part of the
Directors’ Remuneration Report.
Transactions on an arm’s length basis with Tesco Personal Finance Group Limited which became a wholly-owned subsidiary on 19 December 2008
were as follows:
Credit cards and
personal loan balances Saving deposit accounts
Number Number
of key of key
management management
personnel £k personnel £k
At 23 February 2008 2 39 2 19
At 19 December 2008 2 30 2 44
At 28 February 2009 2 30 2 77
During the year, there were no other material transactions or balances between the Group and its key management personnel or members of their
close family.