Tesco 2009 Annual Report Download - page 96

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94 FINANCIAL STATEMENTS
Tesco PLC Annual Report and Financial Statements 2009
Note 13 Group entities continued
Associates
At the Balance Sheet date, the Group’s principal associate is:
Share of issued capital, Country of incorporation
loan capital and debt and principal country
Business activity securities of operation
Greenergy International Limited† Fuel Supplier 21% England
† Held by an intermediate subsidiary.
Although the Group only holds a 21.3% non-voting shareholding in Greenergy International Limited it is treated as an associate as the Board of
Greenergy International Limited requires the consent of Tesco on certain reserve matters as specified in the company’s Articles of Association.
The share of the assets, liabilities, revenue and profit of the Group’s associates, which are included in the consolidated financial statements, are as follows:
2009 2008
£m £m
Assets 163 115
Liabilities (152) (107)
Goodwill 2 2
13 10
Revenue 540 325
Profit for the year 4 1
The accounting period ends of the associates consolidated in these financial statements range from 31 December 2008 to 31 January 2009.
The accounting period end dates of the associates are different from those of the Group as they also depend upon the requirements of the parent
companies of those entities.
There are no significant restrictions on the ability of associated undertakings to transfer funds to the parent, other than those imposed by the
Companies Act 1985.
Note 14 Other investments
2009 2008
£m £m
Equity investment 259 –
Available-for-sale financial assets – 4
259 4
The equity investment comprises an interest free subordinated loan made by Tesco Personal Finance Group Limited to Direct Line Group Limited.
This loan has been classed as an equity investment as there is no interest receivable and no fixed repayment date.
No impairment charges were recognised on the loan since the date of acquisition.
Available-for-sale financial assets consist of ordinary shares, and therefore have no fixed maturity date or coupon rate.
The fair value of the unlisted available-for-sale investments has been estimated using a valuation technique based on assumptions that are not
supported by observable market prices or rates. The fair value of the listed available-for-sale investments is based on quoted market prices at the
Balance Sheet date.
The following table shows the aggregate movement in the Group’s other investments during the year:
2009 2008
£m £m
At beginning of year 4 8
Acquisitions through business combinations 259 –
Revaluation through equity – (4)
IAS 32 and IAS 39 ‘Financial Instruments’ – Fair value remeasurements (4) –
At end of year 259 4
Notes to the Group financial statements continued