NOTES TO THE FINANCIAL STATEMENTS: GROUP STRUCTURE FAIRFAX MEDIA LIMITED AND CONTROLLED ENTITIES FOR THE PERIOD ENDED 28 JUNE 2015
28 JUNE 2015 $’000
29 JUNE 2014 $’000
(i) SHARE OF JOINT VENTURES’ (LOSSES)/PROFITS Revenues
10,540
10,449
Expenses
(12,418)
(8,208)
(1,878)
2,241
(91)
(120)
(1,969)
2,121
39,602
5,126
(Loss)/profit before income tax expense Income tax expense Net (loss)/profit after income tax expense (ii) SHARE OF JOINT VENTURES’ ASSETS AND LIABILITIES Current assets Non-current assets
55,350
17,789
Total assets
94,952
22,915
Current liabilities
71,720
1,330
Non-current liabilities
12,830
177
Total liabilities
84,550
1,507
28 JUNE 2015 $’000
29 JUNE 2014 $’000
(C) SHARE OF NET PROFITS OF ASSOCIATES AND JOINT VENTURES
Profit before income tax expense Income tax expense Net profit after income tax expense
1,701
10,525
(1,391)
(2,518)
310
8,007
ACCOUNTING POLICY Investments in associates and joint ventures are accounted for in the consolidated financial statements using the equity method. Associates are entities over which the Group has significant influence and are neither subsidiaries or joint ventures. The Group’s share of its associates’ and joint ventures’ post-acquisition profits or losses are recognised in the income statement, and its share of post-acquisition movements in reserves is recognised in reserves. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. Dividends received from associates and joint ventures are recognised in the consolidated financial statements as a reduction in the carrying amount of the investment. When the Group’s share of losses in an associate or joint venture equals or exceeds its interest in the associate or joint venture, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate or joint venture. Unrealised gains on transactions between the Group and its associates and joint ventures are eliminated to the extent of the Group’s interest in associates and joint ventures. IMPAIRMENT OF ASSETS Investments accounted for using the equity method are tested for impairment at each reporting date where there is an indication that the asset may be impaired. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. Assets that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.
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