Aviva 2014 Annual Report Download - page 145

Aviva plc Annual report and accounts 2014
141
4 – Subsidiaries continued
(c) Assets and liabilities of operations classified as held for sale
During 2014 it was determined that the value of the Group’s Taiwan joint venture, First-Aviva Life Insurance Co. Ltd. (“Taiwan”),
would no longer be recovered principally through a sale. As a result, the business was reclassified out of “Assets of operations
classified as held for sale” and into “Interests in, and loans to, joint ventures”. As the recoverable amount at the date it ceased to
be held for sale was lower than its carrying value when it was classified as held for sale, no remeasurement gain or loss was
recorded following this reclassification.
The assets and liabilities of operations classified as held for sale as at 31 December 2014 are as follows:
2014
£m
2013
£m
Assets
Goodwill
—
4
Interests in, and loans to, joint ventures and associates
—
29
Financial investments
—
2,675
Reinsurance assets
—
37
Deferred acquisition costs
—
6
Other assets
—
196
Cash and cash equivalents 9351
93,298
Additional impairment to write down the disposal group to fair value less costs to sell —(185)
Total assets 9 3,113
Liabilities
Insurance liabilities (1) (238)
Liability for investment contracts
—
(2,710)
Unallocated divisible surplus
—
4
Provisions
—
(3)
Deferred tax liabilities
—
(1)
External borrowings
—
(29)
Other liabilities (1) (46)
Total liabilities (2) (3,023)
Net assets 790
Assets and liabilities held for sale at 31 December 2014 relate to small reinsurance operations in the Group.
(d) Subsequent events
On 25 February 2015, Crédit du Nord, the Group's partner in Antarius S.A. (“Antarius”), exercised its call option to purchase Aviva
France’s 50% share of Antarius. In accordance with the shareholders agreement, the exercise of the call option starts a period of
approximately two years to complete the disposal. In accordance with IFRS 5, the subsidiary will be classified as Held for Sale from
the date when the transaction is expected to complete within 12 months.
(e) Significant restrictions
In certain jurisdictions the ability of subsidiaries to transfer funds to the Group in the form of cash dividends or to repay loans and
advances is subject to local corporate or insurance laws and regulations and solvency requirements. There are no protective rights
of non-controlling interests which significantly restrict the Group’s ability to access or use the assets and settle the liabilities of the
Group.
Aviva plc Annual report and accounts 2014 |141
IFRS Financial statements