Singapore Airlines 2015 Annual Report Download - page 170

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Notes to the Financial Statements
31 March 2015
24 Associated Companies (in $ million)
The Group
31 March
2015 2014
Share of net assets of associated companies at acquisition date 638.4 567.8
Goodwill on acquisition of associated companies 131.5 98.8
769.9 666.6
Accumulated impairment loss (9.4) (15.0)
760.5 651.6
Goodwill written off to reserves (23.1) (23.1)
Foreign currency translation reserve (107.1) (96.0)
Share of post-acquisition reserves
– general reserve 76.3 64.0
– fair value reserve (9.6) (0.4)
– capital reserve 225.2 133.3
922.2 729.4
The Company
31 March
2015 2014
Investment in associated companies (at cost)
Unquoted equity investments 61.6 36.0
Quoted equity investments 420.2 340.7
481.8 376.7
Accumulated impairment loss (9.4) (63.2)
472.4 313.5
Market value of quoted equity investments 433.0 270.7
During the financial year:
1. RCMS Properties Private Limited recorded a revaluation gain of $53.1 million (FY2013/14: $65.6 million) from its annual
revaluation exercise of its land and building. The Group’s share of the revaluation gain of $10.6 million (2014: $13.1 million)
at 31 March 2015 is included under the share of post-acquisition capital reserve.
2. On 4 July 2014 (the “acquisition date”), the Company appointed a Director to Virgin Australia’s Board of Directors. As a
result, the Company gained significant influence over the investment, as such, Virgin Australia became an associated
company of the Company. A goodwill of $116.3 million was recognised in the carrying value of the associated company,
which is the purchase consideration in excess of the fair value of net identifiable assets as at acquisition date. Subsequent
to the acquisition date, a further 0.23% interest was purchased from the open market for AUD6.4 million ($7.5 million)
resulting in an additional goodwill of $2.1 million being recognised.
3. Virgin Australia recorded a gain on sale of a 35% shareholding in its Velocity Frequent Flyer Programme while retaining
control. Accordingly, a share of the gain on sale of $81.3 million has been recognised in the capital reserve.
4. The Company injected $25.7 million in TATA SIA Airlines Limited (“TATA-SIA”). There was no change in the Group’s 49%
equity stake in TATA-SIA aer the capital injection.
5. Since October 2014, Tiger Airways became a subsidiary company of the Group following the Company’s announcement
of an irrevocable undertaking to support Tiger Airways’ Rights Issue and convert all its 189,390,367 non-voting perpetual
convertible capital securities into new Tiger Airways’ shares.
168 FINANCIAL