BT 2000 Annual Report Download - page 80

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18. Fixed asset investments (continued)
The book value of the assets contributed by the group to the joint venture comprised:
£m
Intangible assets 568
Tangible ®xed assets 870
Total ®xed assets 1,438
Current assets 123
Current liabilities (183)
Net current assets (liabilities) (60)
Provisions for liabilities and charges (13)
Long-term debt owed to the BT group (1,169)
Net assets contributed 196
The acquisition of the group's 50% interest in Concert comprised:
£m
Group's share of Concert's opening net assets (US GAAP) 631
Group's share of US to UK GAAP adjustments (180)
Group's share of Concert's opening net assets (UK GAAP) 451
Net assets contributed by the group to the joint venture (196)
Transition costs (96)
Unrealised gain on the contribution 159
The gain on the transfer of the assets is unrealised since the group continues to maintain a 50% interest in the assets
contributed. This gain has been taken to a non-distributable reserve and is shown in the statement of total recognised
gains and losses. There is no tax charge on the gain.
In the period 5 January to 31 March 2000, the group's turnover with Concert amounted to »181 million and in the same
period it purchased »170 million in services and products from Concert. In addition, the group provided certain support
services to Concert, including the secondment of sta¡, which totalled »79 million and is shown as other operating income.
Interest for the period of »12 million was receivable on long-term debt due from Concert. The amount of debt outstanding
at 31 March 2000 was »665 million. During the period from 1 April 1999 to 5 January 2000, Concert Communications' net
out£ow from operations was »18 million and its purchase of tangible ¢xed assets was »106 million.
(d) Japan Telecom
On 31 August 1999, the group completed its acquisition of a 30% interest, jointly with AT&T Corp, in Japan Telecom, a
leading Japanese telecommunications company. Japan Telecom is held through a BT subsidiary company, 66.7% BT owned
and 33.3% AT&T owned. The group has a 20% economic interest. AT&T's economic interest is shown within the group's
minority interests.
The acquisition of the 30% interest in Japan Telecom comprised:
£m
Group share of original book value of net assets 871
Fair value adjustment to achieve consistency of accounting policies (49)
Fair value to the group 822
Goodwill 432
Total cost 1,254
On 31 March 2000, the 30% interest in Japan Telecom had a market value equivalent to »3,398 million, compared with a
carrying value of »1,345 million.
Annual report and Form 20-F 79