Tesco 2014 Annual Report Download - page 96

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Note 12 Investment property
2014
£m
2013
£m
Cost
At beginning of the year 2, 317 2,253
Foreign currency translation (114) 80
Additions –43
Reclassification (1,908) 7
Classified as held for sale –(21)
Disposals (12) (45)
At end of the year 283 2,317
Accumulated depreciation and impairment losses
At beginning of the year 316 262
Foreign currency translation (17) 10
Charge for the year 19 36
Net impairment charge 21 1
Reclassification (282) 18
Classified as held for sale –(6)
Disposals (1) (5)
At end of the year 56 316
Net carrying value at end of the year 227 2,001
The estimated fair value of the Group’s investment property is £0.4bn (2013: £4.1bn). This fair value has been determined by applying an appropriate rental
yield to the rentals earned by the investment property. A valuation has not been performed by an independent valuer.
The Group continually assesses the level of services provided to tenants of its managed investment properties in accordance with IAS 40. During the year,
it was concluded that the level of services provided to tenants of some malls operated by the Group are no longer considered insignificant and as a result a
number of malls with a net book value of £1,623m have been reclassified from investment property to property, plant and equipment.
Note 13 Group entities
Principal subsidiaries
The Group consolidates its subsidiary undertakings and its principal subsidiaries are:
Business activity
Share of issued
ordinary share capital
and voting rights
Country of incorporation
and principal country
of operation
Tesco Stores Limited Retail 100% England
One Stop Stores Limited*Retail 100% England
Tesco Ireland Limited Retail 100% Republic of Ireland
Tesco-Global Stores Privately Held Co. Limited Retail 100% Hungary
Tesco Polska Sp. z o.o. Retail 100% Poland
Tesco Stores CR a.s. Retail 100% Czech Republic
Tesco Stores SR a.s. Retail 100% Slovakia
Tesco Kipa Kitle Pazarlama Ticaret ve Gida Sanayi A S Retail 95% Turkey
Homeplus Co., Limited Retail 100% South Korea
Homeplus Tesco Co., Limited Retail 100% South Korea
Ek-Chai Distribution System Co. Limited Retail 86%** Thailand
Tesco Stores (Malaysia) Sdn Bhn Retail 70% Malaysia
Tesco Holdings (China) Co. Limited Retail 100% People’s Republic of China
Dobbies Garden Centres Limited Retail 100% Scotland
Fresh & Easy Neighborhood Market Inc. Retail 100% United States of America
Tesco Personal Finance Group Limited* (trading as Tesco Bank) Financial Services 100% Scotland
Tesco Distribution Limited Distribution 100% England
Tesco Property Holdings Limited Property 100% England
Tesco International Sourcing Limited Purchasing 100% Hong Kong
dunnhumby Limited Data Analysis 100% England
Tesco Corporate Treasury Services PLC*Financial Services 100% England
Tesco Food Sourcing Limited Sourcing 100% England
Blinkbox Entertainment Limited Online Entertainment 100% England
Tesco International Internet Retailing Limited*Retail 100% England
Tesco Hindustan Wholesaling Private Limited Retail 100% Republic of India
* Held by the Parent Company (all other principal subsidiaries are held by an intermediate subsidiary).
** The Group has 86% of voting rights and 39% of issued ordinary share capital in Ek-Chai Distribution System Co. Limited.
The accounting period ends of the subsidiary undertakings consolidated in these financial statements are on or around 22 February 2014. A list of the Group’s
subsidiary undertakings will be annexed to the next Annual Return filed at Companies House. There are no significant restrictions on the ability of subsidiary
undertakings to transfer funds to the parent, other than those imposed by the Companies Act 2006.
Other information
Governance Financial statementsStrategic report
Tesco PLC Annual Report and Financial Statements 2014 93