Vector Annual Report 2020

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

Made with FlippingBook Learn more on our blog