Aviva 2013 Annual Report Download - page 162

Aviva plc
Annual report and accounts 2013
160
Notes to the consolidated financial statements continued
19 – Interests in, and loans to, joint ventures
In several businesses, Group companies and other parties jointly control certain entities. This note analyses these interests and
describes the principal joint ventures in which we are involved.
(a) Carrying amount and details of joint ventures
(i) The movements in the carrying amount comprised:
2013
Restated2
2012
Goodwill
and
intangibles
£m
Equity
interests
£m
Loans
£m
Total
£m
Goodwill
and
intangibles
£m
Equity
interests
£m
Loans
£m
Total
£m
At 1 January 132 1,341 43 1,516 147 1,465 100 1,712
Share of results before tax — 161 — 161 — 4 — 4
Share of tax — (16) — (16) — (4) — (4)
Share of results after tax — 145 — 145 — — — —
Impairment of goodwill — — — — (9) — — (9)
Amortisation of intangibles1 (5) — — (5) (6) — — (6)
Share of (loss)/profit after tax (5) 145 — 140 (15) — — (15)
Impact of the adoption of IFRS 102 — — — — — (77) (49) (126)
Additions — 149 6 155 — 89 4 93
Reclassification to subsidiary — — — — — (107) — (107)
Reduction in Group interest — (37) — (37) — — — —
Disposals (54) (378) — (432) — (41) — (41)
Share of (losses)/gains taken to other comprehensive income — (37) — (37) — 21 — 21
Loans repaid — — (21) (21) — — (12) (12)
Dividend received — (37) — (37) — (5) — (5)
Foreign exchange rate movements (13) (1) (4) (18) — (4) — (4)
At 31 December 60 1,145 24 1,229 132 1,341 43 1,516
Less: Amounts classified as held for sale — (29) — (29) (54) (72) — (126)
60 1,116 24 1,200 78 1,269 43 1,390
1 Comprises amortisation of AVIF on insurance contracts of £3 million (2012: £3 million) and other intangibles of £2 million (2012: £3 million).
2 Comprises the impact of the adoption of IFRS 10 on prior year comparatives and the resulting consolidation and deconsolidation of entities based on the revised definition and criteria of control outlined in accounting Policy (D).
The impact of the adoption of IFRS 10 on the Group’s share of results has been reflected in the appropriate lines in the table above. See note 1 for further details.
Additions relate to additional investments in property management undertakings. Disposals relate to property management
undertakings and the sale of the Malaysian joint ventures. Further details of the Malaysian entities sold are provided in note 4.
The reduction in Group interest in the year relates primarily to the reclassification of two Polish joint ventures to associates and
the write-down of the South Korean joint venture, Woori Aviva Life Insurance Co. Ltd, to fair value less costs to sell following its
classification as held for sale. See note 4 for further details.
The Group’s Taiwan joint venture, First-Aviva Life Insurance Co. Ltd, was classified as held for sale in 2010 following the
decision of management to seek to dispose of the business. Management have reviewed the held for sale classification and
determined that classification remains appropriate. The disposal is expected to be completed within 12 months of the balance
sheet date.
(ii) The carrying amount at 31 December comprised:
2013
Restated1
2012
Goodwill
and
intangibles
£m
Equity
interests
£m
Loans
£m
Total
£m
Goodwill
and
intangibles
£m
Equity
interests
£m
Loans
£m
Total
£m
Property management undertakings — 893 24 917 — 996 43 1,039
Long-term business undertakings 60 252 — 312 132 339 — 471
General insurance undertakings — — — — — 6 — 6
Total 60 1,145 24 1,229 132 1,341 43 1,516
1 Restated for the adoption of IFRS10. Refer to note 1 for further details
The property management undertakings perform property ownership and management activities, and are incorporated and
operate in the UK. All such investments are held by subsidiary entities. The loans are not secured and no guarantees were received
in respect thereof. They are interest-bearing and are repayable on termination of the relevant partnership.
The long-term business undertakings perform life insurance activities. All investments in such undertakings are unlisted and are
held by subsidiaries, except for the shares in the Chinese joint venture, Aviva-COFCO Life Insurance Co. Limited, which are held by
Aviva plc. The Group’s share of net assets of that company is £177 million (2012: £141 million), which has a fair value of £177
million (2012: £141 million).