48 Associates and joint ventures

Associates are entities over which the group has significant influence but which it does not control. Consistent with IAS 28, ‘Investments in associates’, it is presumed that the group has significant influence where it has between 20% and 50% of the voting rights in the investee unless indicated otherwise. Joint ventures are entities where the group and other parties undertake an activity which is subject to joint control. The basis by which associates and joint ventures are consolidated in the group financial statements is outlined in the basis of preparation (Note 1).

The group has the following significant holdings which have been included as financial investments, investments in associates or joint ventures. The gross assets of these companies are in part funded by borrowings which are non-recourse to the group.

Company name

Country of incorporation

Accounting treatment

Year end reporting date

% of equity shares held by the Group

1.

The Bracknell Property Unit Trust and Commercial International Life Company SAE are not consolidated as the group does not have the power to control the entity.

2.

IndiaFirst Life Insurance Company Limited is an associate operation, Legal & General Gulf BSC and Commercial International Life Company SAE are joint venture operations.

Commercial International Life Company SAE1,2

Egypt

Equity method

30/06/2014

55.0

Bracknell Property Unit Trust1

Jersey

FVTPL

31/03/2014

50.4

Central St Giles Unit Trust

Jersey

FVTPL

31/12/2014

50.0

Legal & General Gulf BSC2

Bahrain

Equity method

31/03/2014

50.0

Mithras Capital Fund Limited Partnership

Scotland

FVTPL

31/12/2014

50.0

Warrington Retail Unit Trust

Jersey

FVTPL

31/12/2014

50.0

Meteor Industrial Partnership

England and Wales

FVTPL

31/12/2014

49.9

CALA Group Limited

Scotland

Equity method

30/06/2014

46.5

Arlington Business Parks Unit Trust

Jersey

FVTPL

31/12/2014

41.3

Novus Leisure Limited

England and Wales

FVTPL

30/06/2014

40.5

English Cities Fund

England and Wales

FVTPL

31/12/2014

37.5

IndiaFirst Life Insurance Company Limited2

India

Equity method

31/03/2014

26.0

Bishopsgate Limited Partnership

Jersey

FVTPL

31/12/2014

25.0

(i) Associates

Summarised financial information for associates is shown below.

 

Equity method

Classified as FVTPL

2014

Associates
£m

Private equity
£m

Property partnerships
£m

Total
£m

Current assets

22

24

54

78

Non-current assets

459

125

1,038

1,163

Current liabilities

15

22

197

219

Non-current liabilities

429

127

218

345

 

 

 

 

 

Revenue

221

111

162

273

Profit or loss from continuing operations

(14)

93

79

Total comprehensive income

(14)

93

79

 

Equity method

Classified as FVTPL

2013

Associates
£m

Private equity
£m

Property partnerships
£m

Total
£m

Current assets

14

75

826

901

Non-current assets

411

80

378

458

Current liabilities

9

23

399

422

Non-current liabilities

379

107

177

284

 

 

 

 

 

Revenue

224

124

103

227

Profit or loss from continuing operations

(4)

(4)

51

47

Total comprehensive income

(4)

(4)

51

47

(ii) Joint ventures

Summarised financial information for joint ventures is shown below.

Joint Ventures

2014
£m

2013
£m

Current assets

955

348

Non-current assets

748

503

Current liabilities

199

128

Non-current liabilities

628

183

 

 

 

Revenue

420

216

Profit or loss from continuing operations

33

11

Total comprehensive income

33

11

 

 

 

Cash and cash equivalents

696

16

Current financial liabilities (excluding trade and other payables/provisions)

2

1

Non-current financial liabilities (excluding trade and other payables/provisions)

561

26

Interest expense

17