12. Investments CONTINUED 12.2 Investment in associate
PERCENTAGE HELD
COUNTRY OF INCORPORATION
ASSOCIATE
PRINCIPAL ACTIVITY
BALANCE DATE
2019
2018
50%
Tree Scape Limited
Vegetation management
31 March
New Zealand
50%
2019 $M
2018 $M
Carrying amount of associates Balance at 1 July Share of net profit/(loss) of associate
8.1 0.6 8.7
9.6
(1.5)
Balance at 30 June
8.1
Equity accounted earnings of associate Profit/(loss) before income tax
0.8
(2.1)
(0.2)
Income tax benefit/(expense)
0.6
Share of net profit/(loss) of associate Total recognised revenues and expenses
0.6 0.6
(1.5) (1.5)
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.
12.3 Interest in joint operation
INTEREST HELD
JOINT OPERATION
PRINCIPAL ACTIVITY
BALANCE DATE
2019
2018
50%
Kapuni Energy Joint Venture Cogeneration plant operator
30 June
50%
Policies
A joint operation is where Vector is a party to a joint arrangement and has rights to the assets and obligations for the liabilities relating to the arrangement. Vector has assessed that the contractual arrangement governing the Kapuni Energy Joint Venture, of which Vector Kapuni Limited is a party, meets the criteria of a joint arrangement, and that the rights and obligations conferred by that contract meet the classification of a joint operation. The interest in the joint operation is reported in the financial statements using the proportionate method of consolidation.
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