Annual report and accounts 2008

Notes contentsNotes to consolidated financial statements

12. Investments in joint ventures and associates

Joint ventures

All figures in £ millions	2008	2007
At beginning of year	11	12
Exchange differences	(4)	—
Share of profit after tax	6	4
Dividends	(5)	(8)
Additions and further investment	5	3
At end of year	13	11

Investments in joint ventures are accounted for using the equity method of accounting and are initially recognised at cost.

The aggregate of the Group’s share in its joint ventures, none of which are individually significant, are as follows:

All figures in £ millions	2008	2007
Assets
Non-current assets	6	3
Current assets	21	23
Liabilities
Current liabilities	(14)	(15)
Net assets	13	11
Income	36	61
Expenses	(30)	(57)
Profit after income tax	6	4

Associates

All figures in £ millions	2008	2007
At beginning of year	9	8
Exchange differences	(5)	(1)
Share of profit after tax	19	19
Dividends	(16)	(24)
Additions	—	1
Distribution from associate in excess of carrying value	6	6
Actuarial losses on retirement benefit obligations	(3)	—
At end of year	10	9

Investments in associates are accounted for using the equity method of accounting. There is no acquisition goodwill relating to the Group’s investments in associates.

The Group’s interests in its principal associates, all of which are unlisted, are as follows:

2008 All figures in £ millions	Country of incorporation	% interest held	Assets	Liabilities	Revenues	Profit
The Economist Newspaper Ltd	England	50	86	(86)	149	16
Other			35	(25)	42	3
Total			121	(111)	191	19

2007 All figures in £ millions	Country of incorporation	% interest held	Assets	Liabilities	Revenues	Profit
The Economist Newspaper Ltd	England	50	63	(63)	131	15
Other			30	(21)	56	4
Total			93	(84)	187	19

The interest held in associates is equivalent to voting rights.