NOTES TO THE FINANCIAL STATEMENTS
14. Investments:// CONTINUED Policies
Subsidiaries are entities controlled directly or indirectly by the parent. Vector holds over 50% of the voting rights in all entities reported as subsidiaries. There are currently no indicators that Vector does not have control consistent with these voting rights. The financial statements of subsidiaries are reported in the financial statements using the acquisition method of consolidation. Intra-group balances and transactions between group companies are eliminated on consolidation. Subsidiaries which have a 31 March balance date are in the process of changing the balance dates to 30 June. All subsidiaries are incorporated in New Zealand, except for the following which are incorporated in Australia: —— Vector Advanced Metering Services (Australia) Pty Limited; —— Vector Energy Solutions (Australia) Pty Limited; —— Ventilation Australia Pty Limited; —— HRV Australia Pty Limited. During the year, two of the group’s subsidiaries, Poihipi Land Limited and Mercury Geotherm Limited were removed from the Register of Companies.
Balance date
Geography
Removal
14.2 Investment in associates
PERCENTAGE HELD
PRINCIPAL ACTIVITY
BALANCE DATE
COUNTRY OF INCORPORATION
ASSOCIATES
2017
2016
Vegetation management
Tree Scape Limited
31 March New Zealand
50%
50%
2017 $000
2016 $000
Carrying amount of associates Balance at 1 July
15,612 (5,596)
11,475
Reclassification of investment in NZ Windfarms Limited to financial asset
–
Share of net profit/(loss) of associates
1,568
2,809
Share of other comprehensive income of associate
(18)
250
Dividends received
(2,000)
(1,500)
Reversal of impairment of investment in associate
–
2,578
Balance at 30 June
9,566
15,612
Equity accounted earnings of associates Profit/(loss) before income tax
2,178
3,901
Income tax benefit/(expense)
(610)
(1,092)
Share of net profit/(loss) of associates Total recognised revenues and expenses
1,568 1,568
2,809 2,809
Policies
Associates are entities in which Vector has significant influence, but not control or joint control, over the operating and financial 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 significant 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 financial statements using the equity method.
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