Financial statements
Section B: Notes to the Group financial statements for the year ended 30 June 2024
Section B: Notes to the Group financial statements for the year ended 30 June 2024
B22 Equity accounted investments (continued) Summarised financial information of equity accounted investments (continued) The following table reconciles the above summarised financial information presented on a 100 per cent basis to the proportional amounts recognised by the Group: STP JV NWRG TC A25 Other ² Total $M $M $M $M $M $M 2024 Ownership interest 50 % 50 % 50 % 50 % 60 % Proportional total comprehensive (loss)/income, inclusive of impairment¹ (439) 51 15 (27) — (400) Profits not recognised (excluding other comprehensive income) — (17) — — — (17) Group's share of total comprehensive (loss)/income (439) 34 15 (27) — (417)
2023 Ownership interest
50 % 50 % 50 % 50 % 60 %
Proportional total comprehensive (loss)/income
(337)
50 —
(14)
(1)
(28)
(330)
Impairment of capitalised costs
— — —
— — —
— — —
(6)
(6)
Profits not recognised (excluding other comprehensive income)
(44)
— —
(44)
Other comprehensive income not recognised
(6)
(6)
Group's share of total comprehensive (loss)/income
(337)
—
(14)
(1)
(34)
(386)
1. During FY24, the Group recorded a pre-tax impairment of its investment in A25 of $22 million (2023: $nil). 2. Other equity accounted investments includes AM Partners. Indicators of impairment
At each reporting period the Group assesses whether there is an indication of impairment for each of the Group’s equity accounted investments. Where an indicator of impairment is identified, impairment testing is performed. During the year ended 30 June 2024, there were no indicators of impairment identified for the Group's equity accounted investments, except for the A25 equity accounted investment. The resulting impairment testing identified that the carrying amount of the A25 equity accounted investment exceeded its recoverable amount determined based on its fair value less costs of disposal. The recoverable amount is a Level 3 fair value measurement determined using a present value technique based on estimated cash flows from the investment. The carrying amount of the A25 equity accounted investment was written down to its recoverable amount resulting in a pre-tax impairment loss of $22 million (2023: $nil). During FY23, AM Partners decided not to proceed with the Maryland Express Lanes Project and terminated the predevelopment agreement with the Maryland Department of Transportation. The termination triggered an impairment assessment as at 30 June 2023 and the carrying amount of the investment was impaired from $6 million to $nil, after recognising the Group's share of equity accounted losses (inclusive of impairment) in AM Partners. KEY ACCOUNTING ESTIMATE AND JUDGEMENT The key assumptions underlying the Group's impairment indicator assessments are traffic volumes, long-term CPI, the discount rate and asset enhancement opportunities (where applicable). As part of the impairment indicator assessment, sensitivity analysis has been performed which considers reasonably possible changes in these key assumptions for each of the Group's equity accounted investments. The Group does not consider that reasonably possible changes in key assumptions would result in the recoverable amount being lower than the carrying amount of an equity accounted investment (EAI), except for the A25 EAI. For the A25 EAI, after the pre-tax impairment loss of $22 million recognised in FY24, the carrying amount and recoverable amount are equal as at 30 June 2024. The A25 EAI is therefore sensitive and may result in impairment in the future if there are reasonably possible changes in the key assumptions on which management have determined its recoverable amount, including traffic volumes, long-term CPI, discount rates and the realisation of asset enhancement opportunities.
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