Aviva 2013 Annual Report Download - page 163

Strategic report Governance IFRS Financial statements Other information
Aviva plc
Annual report and accounts 2013
161
Notes to the consolidated financial statements continued
19 – Interests in, and loans to, joint ventures continued
(iii) No joint ventures are considered to be material from a Group perspective (2012: none). The Group’s principal joint ventures are
as follows:
Name Nature of activities Principal place of business
Proportion of
ownership interest
2013 2012
The Southgate Limited Partnership Property management UK 50.00% 50.00%
Queensgate Limited Partnership Property management UK 50.00% 50.00%
Airport Property Partnership Property management UK 50.00% 50.00%
2-10 Mortimer Street Limited Partnership Property management UK 38.10% 27.30%
The Mall Limited Partnership Property management UK 50.52% 50.52%
Aviva-COFCO Life Insurance Co. Ltd Life insurance China 50.00% 50.00%
First-Aviva Life Insurance Co. Ltd Life insurance Taiwan 49.00% 49.00%
AvivaSA Emeklilik ve Hayat A.S Life insurance Turkey 49.83% 49.83%
Woori Aviva Life Insurance Co. Ltd Life insurance Korea 47.31% 47.31%
(iv) The aggregate carrying amount of the Group’s interests in all individually immaterial joint ventures, and related financial
information representing the Group’s share, is as follows:
Restated1
2013
£m
2012
£m
Carrying amount of the Group’s interest 1,229 1,516
Post-tax profit/(loss) 140 (15)
Other comprehensive income (37) 21
Total comprehensive income 103 6
1 Restated for the adoption of IFRS10. See note 1 for further details.
(v) The joint ventures have no significant contingent liabilities to which the Group is exposed. The Group has commitments to
provide funding to property management joint ventures of £140 million (2012: £41 million).
In certain jurisdictions the ability of joint ventures to transfer funds in the form of cash dividends or to repay loans and advances
made by the Group is subject to local corporate or insurance laws and regulations and solvency requirements. We do not believe
that these requirements constitute a material limitation on the ability of the joint ventures to transfer funds to the Group.
b) Impairment testing
Joint ventures are tested for impairment by comparing the carrying value of the cash generating unit to which the goodwill relates
to the recoverable value of that cash generating unit.
The recoverable amount of long-term business undertakings is the value in use of the joint venture. This is calculated according
to the methodology for the calculation of the value in use of long-term business cash generating units for the impairment testing
of goodwill, as set out in note 17(b).
The recoverable amount for joint ventures in Korea and Taiwan classified as operations held for sale (Woori Aviva Life Insurance
Co. Ltd and First-Aviva Life Insurance Co., Ltd.) is the fair value less costs to sell for each entity, based on the expected net disposal
proceeds. The recoverable amount of property management undertakings is the fair value less costs to sell of the joint venture,
measured in accordance with the Group’s accounting policy for Investment Property (accounting policy Q).
Following impairment testing for the remaining joint ventures, the goodwill amounts within the joint ventures are fully
recoverable.
20 – Interests in, and loans to, associates
This note analyses our interests in entities which we do not control but where we have significant influence.
Carrying amount and details of associates
(i) The movements in the carrying amount comprised:
2013
Restated1
2012
Goodwill
and
intangibles
£m
Equity
interests
£m Loans
Total
£m
Goodwill
and
intangibles
£m
Equity
interests
£m Loans
Total
£m
At 1 January — 256 9 265 115 1,003 — 1,118
Share of results before tax — 10 — 10 — (296) — (296)
Share of tax — (1) — (1) — (2) — (2)
Share of results after tax — 9 — 9 — (298) — (298)
Impairment (29) — — (29) (147) 205 — 58
Share of (loss)/profit after tax (29) 9 — (20) (147) (93) — (240)
Impact of the adoption of IFRS 101 — — — — — 42 9 51
Additions 29 14 — 43 32 — — 32
Loans repaid — — (4) (4) — — — —
Reduction in Group interest — (8) — (8) — (601) — (601)
Share of losses taken to other comprehensive income — — — — — (7) — (7)
Dividends received — (10) — (10) — (43) — (43)
Foreign exchange rate movements — 1 — 1 — (45) — (45)
Movements in carrying amount — 6 (4) 2 (115) (747) 9 (853)
At 31 December — 262 5 267 — 256 9 265
1 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.