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Notes to the Financial Statements 2018
25. Investments in associates and joint ventures
Investments in associates are measured using the equity method. The equity method has been used for associate entities over which the Group has significant influence but not control. A joint arrangement is an arrangement where two or more parties have joint control. The Group classifies its joint arrangements as either joint operations or joint ventures depending on the legal, contractual and other rights and obligations. Where the interest in the joint arrangement is in the net residual value of the business, the arrangement is a joint venture. Joint ventures are accounted for using the equity method. Under the equity method of accounting, investments in joint ventures are initially recognised at cost. Subsequent to initial recognition, the consolidated financial statements include the group’s share of profit or loss and other comprehensive income of equity accounted investees. Where the Group has rights to the assets and obligations for the liabilities of the joint arrangement, this is a joint operation. The Group recognises its share of assets, liabilities, revenue and expenses of each joint operation.
June 2018 NZ$M
June 2017 NZ$M
Fletcher Building Group
Carrying amount of associates/joint ventures: Carrying amount at the beginning of the year New investment in associates/joint ventures Share of profits of associates/joint ventures Sale of investment in associates/joint ventures
146
135
2
26
20
(7)
(1)
2
Currency translation
1
(18)
Distributions from associates/joint ventures Investment in associates and joint ventures
(11)
149
146
Investment by associate/joint venture: Wespine Industries Pty Limited
48 20 62 19
45 19 56 26
Hexion Australia Pty Ltd
Altus NZ Limited
Other
149
146
Associate and joint venture information: Balance sheet information for associates and joint ventures – 100% Assets
253
314
(82)
Liabilities
(126)
171
Equity
188
86 59
Equity – Fletcher Building share
86 56
Goodwill acquired at cost
4
Loans to associates and joint ventures Investment in associates and joint ventures
4
149
146
Equity accounted earnings comprise: Sales – 100%
509
429
82
Earnings before taxation – 100%
37
33
Earnings before taxation – Fletcher Building share
22
(7)
Taxation expense
(2)
Earnings after taxation – Fletcher Building share
26
20
92 Fletcher Building Limited Annual Report 2018
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