Aviva 2014 Annual Report Download - page 169

Aviva plc Annual report and accounts 2014
165
19 – Interests in, and loans to, joint ventures continued
Additionally, the Group has one property limited partnership joint venture whose non-controlling interest (NCI) is material on the
basis of their share of profit/(loss), as follows:
Proportion of
ownership interests
held by NCI
Proportion of
voting rights
held by NCI
Profit/(loss)
allocated to NCI Accumulated NCI
2014 2013 2014 2013
2014
£m
2013
£m
2014
£m
2013
£m
2 – 10 Mortimer Limited Partnership 54.5% 61.9% 50% 50% 62 41 102 46
(iv) 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 £70 million (2013: £140 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.
b) Impairment testing
Joint ventures are tested for impairment by comparing the carrying value of the cash generating unit to which the goodwill or
intangible 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 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 (see accounting policy Q).
There is no impairment in the goodwill and intangible amounts within the joint ventures.
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:
2014 2013
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
—
262 5 267 — 256 9 265
Share of results before tax
—
44
—
44 — 10
—
10
Share of tax
—
(2)
—
(2) — (1)
—
(1)
Share of results after tax
—
42
—
42 — 9
—
9
Impairment (24)
—
—
(24) (29) —
—
(29)
Share of results after tax (24) 42
—
18 (29) 9
—
(20)
Additions 24 34
—
58 29 14
—
43
Loans repaid
—
—
(8) (8) — — (4) (4)
Reduction in group interest
—
(43)
—
(43) — (8)
—
(8)
Reclassification from subsidiary
—
125
—
125 — —
—
—
Reclassification from investment
—
25
—
25 — —
—
—
Dividends received
—
(30)
—
(30) — (10)
—
(10)
Foreign exchange rate movements
—
(11) 3 (8) — 1
—
1
Movements in carrying amount — 142 (5) 137 — 6 (4) 2
At 31 December — 404 — 404 — 262 5 267
Impairment testing
Management has determined that the goodwill in Aviva Life Insurance Company India Limited is fully impaired. An impairment of
£24 million (2013: £29 million) has been recognised in respect of this associate, reducing its goodwill to £nil.
The recoverable amount of property management undertakings is the fair value less costs to sell of the associate, measured in
accordance with the Group’s accounting policy for Investment Property (see accounting policy Q).
Other movements
Additions of equity interests and reduction in group interests relate to the purchase and sale of portions of the Group’s holdings in
various property management undertakings. Reclassification from subsidiary relates primarily to the reclassification of property
management undertakings following reductions in the Group’s stakes in 2014. The Group’s share of total comprehensive income
related to associates is £18 million (2013: loss of £20 million).
(ii) No associates are considered to be material from a Group perspective (2013: none). All investments in principal associates are
held by subsidiaries. The Group’s principal associates are as follows:
Name Nature of activities Principal place of business
Proportion of
ownership interest
2014 2013
Aviva Life Insurance Company India Life insurance India 26.00% 26.00%
SCPI Ufifrance Immobilier Property Management France 20.40% 20.40%
Ashtenne Industrial Fund (A.I.F) Property Management UK 20.10% 32.17%
Encore +1 Property Management UK 10.82% 12.32%
1. The Group has significant influence over Encore + and it is therefore accounted for as an associate.
Aviva plc Annual report and accounts 2014 |165
IFRS Financial statements