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13. Investments in associates and joint ventures

2020
$m

2019
$m

Investments in joint ventures - unlisted

135

150

Investments in associates - unlisted

-

-

Total investments in associates and joint ventures

135

150

Reconciliation of movements in investments in associates and joint ventures

2020
$m

2019
$m

Balance at beginning of financial year

150

100

Additions1

11

60

Impairment loss recognised in profit or loss2

(14)

-

Share of profits after income tax

17

33

Dividends received

(15)

(27)

Other

(14)

(16)

Balance at end of financial year

135

150

  1. 1 During the year, AGL made $11 million of capital contributions (2019: $60 million) to Powering Australian Renewables Fund in accordance with the terms of the Investor Agreement and Commitment Deed.
  2. 2 During the year, AGL partially impaired the carrying value of its investment interest in Powering Australian Renewables Fund, reflecting revised market pricing and generation output assumptions for operations sites. An impairment loss of $14 million ($10 million post-tax) was recognised as a Significant Item in the period.

Principal activities

Ownership interest

Carrying value

2020
%

2019
%

2020
$m

2019
$m

Associates

Solar Analytics Pty Ltd

Solar PV monitoring

31.2

31.2

-

-

Joint ventures

ActewAGL Retail Partnership

Gas and electricity retailer

50

50

51

50

Energy Infrastructure Management Pty Ltd

Pipeline management services

50

50

4

4

Central Queensland Pipeline Pty Ltd

Gas pipeline development

50

50

-

-

Powering Australian Renewables Fund

Development and owner of renewable energy generation projects

20

20

80

96

Total investments in associates and joint ventures

135

150

All the above entities are incorporated and operate in Australia.

Aggregate information of joint ventures that are not individually material

2020
$m

2019
$m

Current assets

502

546

Non-current assets

1,297

1,221

Total assets

1,799

1,767

Current liabilities

242

223

Non-current liabilities

1,057

1,043

Total liabilities

1,299

1,266

Net assets

500

501

Revenue

734

1,037

Expenses

(696)

(966)

AGL’s share of joint ventures’ profit

17

33

Commitments and contingent liabilities

AGL’s share of commitments and contingent liabilities of associates and joint ventures are disclosed in Notes 23(b) and 24 respectively.

ACCOUNTING POLICY

Investments in equity accounted investees

AGL’s interests in equity accounted investees comprise interests in associates and joint ventures. Associates are those entities in which AGL has significant influence, but not control, over the financial and operating policies of the entity. A joint venture is an arrangement in which AGL has joint control and AGL has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities.

Investments in associates and joint ventures are accounted for using the equity method.

Under the equity method, investments in associates and joint ventures are initially recognised in the Consolidated Statement of Financial Position at cost and adjusted thereafter to recognise AGL’s share of the profit or loss and other comprehensive income of the associates and joint ventures.

An impairment loss is measured by comparing the recoverable amount of the investment with its carrying amount. An impairment loss is recognised in profit or loss and is reversed if there has been a favourable change in estimates used to determine the recoverable amount.

Unrealised gains on transactions between AGL and an associate or a joint venture are eliminated to the extent of AGL’s interest in the associate or joint venture. Unrealised losses are also eliminated, but only to the extent that there is no evidence of an impairment.

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