63 ―
13. Investments continued 13.1 Investment in associate
PERCENTAGE HELD
COUNTRY OF INCORPORATION
ASSOCIATE
PRINCIPAL ACTIVITY
BALANCE DATE
2020
2019
50%
Tree Scape Limited
Vegetation management
31 March
New Zealand
50%
2020 $M
2019 $M
Carrying amount of associate Balance at 1 July Share of net prof it/(loss) of associate Share of other comprehensive income of associate
8.7 0.3
8.1 0.6
(0.1)
–
Balance at 30 June
8.9
8.7
Equity accounted earnings of associate Prof it/(loss) before income tax Income tax benef it/(expense)
0.4
0.8
(0.1)
(0.2)
Share of net profit/(loss) of associate Total recognised revenues and expenses
0.3 0.3
0.6 0.6
Policies
Associates are entities in which Vector has signif icant influence, but not control or joint control, over the operating and f inancial policies. Vector holds over 20%, but not more than half, of the voting rights in all entities reported as associates and has assessed that there are currently no indicators that Vector does not have signif icant influence consistent with these voting rights. Where Vector has 50% voting rights in an entity reported as an associate, we have determined that this does not constitute joint control as there is more than one combination of parties that can achieve majority voting rights and control through Board voting. Investments in associates are reported in the f inancial statements using the equity method.
13.2 Investment in private equity
EQUITY INTEREST HELD
COUNTRY OF INCORPORATION
INVESTEE
PRINCIPAL ACTIVITY
2020
2019
8.1%
mPrest Systems (2003) Limited Technology development
Israel
8.1%
2020 $M
2019 $M
Fair value of investment Balance at 1 July
15.6
15.0
(2.8)
Fair value movement recognised in OCI
0.6
Balance at 30 June
12.8
15.6
Policies
The investment is accounted for as a f inancial asset at fair value through other comprehensive income (“OCI”) on the Balance Sheet. Fair value of the investment is determined using the discounted cash flow method. Refer to note 18 for details on the signif icant unobservable inputs used in measuring the fair value and related sensitivity analysis.
Notes to the Financial Statements
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