Aviva 2014 Annual Report Download - page 170

Aviva plc Annual report and accounts 2014
Notes to the consolidated financial statements continued
166
20 – Interests in, and loans to, associates continued
(iii) The associates have no significant contingent liabilities to which the Group is exposed.
In certain jurisdictions the ability of associates 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.
21 – Property and equipment
This note analyses our property and equipment, which are primarily properties occupied by Group companies.
Properties
under
construction
£m
Owner -
occupied
properties
£m
Motor
vehicles
£m
Computer
equipment
£m
Other
assets
£m
Total
£m
Cost or valuation
At 1 January 2013 74 337 3 608 219 1,241
Additions
—
12 — 9 9 30
Disposals1 (44) (96) — (19) (61) (220)
Transfers (to)/from investment property (note 22) (25) 1 — —
—
(24)
Fair value losses 3 (2) — —
—
1
Foreign exchange rate movements
—
6 — (2) (1) 3
At 31 December 2013 8 258 3 596 166 1,031
Additions
—
100 — 9 7 116
Disposals (13) (4) — (39) (5) (61)
Transfers (to)/from investment property (note 22)
—
—
— —
—
—
Fair value gains/(losses) 5 4 — —
—
9
Foreign exchange rate movements
—
(15) — (3) (9) (27)
At 31 December 2014 — 343 3 563 159 1,068
Depreciation and impairment
At 1 January 2013
—
(92) (2) (559) (195) (848)
Charge for the year
—
—
— (22) (12) (34)
Disposals1
—
91 — 12 59 162
Foreign exchange rate movements
—
—
— — 2 2
At 31 December 2013
—
(1) (2) (569) (146) (718)
Charge for the year
—
—
— (13) (6) (19)
Disposals
—
—
— 37 5 42
Impairment charge
—
(26) — —
—
(26)
Foreign exchange rate movements
—
—
— 5 5 10
At 31 December 2014 — (27) (2) (540) (142) (711)
Carrying amount
At 31 December 2013 8 257 1 27 20 313
At 31 December 2014 — 316 1 23 17 357
1 Disposals include property and equipment sold as part of the disposal of the US Life business in 2013.
Total net fair value gains of £4 million on owner occupied properties consist of £7 million gains (2013: £2 million losses) which
have been taken to other comprehensive income and £3 million losses which have been taken to the income statement.
Owner-occupied properties are stated at their revalued amounts, as assessed by qualified external valuers. These values are
assessed in accordance with the relevant parts of the current Royal Institute of Chartered Surveyors Appraisal and Valuation
Standards in the UK, and with current local valuation practices in other countries. This assessment is in accordance with UK
Valuations Standards (“Red book”), and is the estimated amount for which a property should exchange on the date of valuation
between a willing buyer and a willing seller in an arm’s-length transaction, after proper marketing wherein the parties had acted
knowledgeably and without compulsion, on the basis of the highest and best use of asset that is physically possible, legally
permissible and financially feasible. The valuation assessment adopts market-based evidence and is in line with guidance from the
International Valuation Standards Committee and the requirements of IAS 16, Property, Plant and Equipment.
Similar considerations apply to properties under construction, where an estimate is made of valuation when complete, adjusted
for anticipated costs to completion, profit and risk, reflecting market conditions at the valuation date.
If owner-occupied properties were stated on a historical cost basis, the carrying amount would be £329 million (2013: £255 million).
The Group has no material finance leases for property and equipment.
166 | Aviva plc Annual report and accounts 2014