How does a 15% investment provide significant influence? On disposal of the majority of a subsidiary, Swiss cement manufacturer Holcim classifies the residual 15% interest as an associate with no explanation of how it considers it has significant influence.
Taking the credit for curtailment gainsUK distribution company Smiths News recognises in the income statement a £5.4 million curtailment gain representing 14.8% of pre-tax profit.Opening but not closing pension deficit disclosed on 'ongoing basis'UK distribution company Smiths News discloses a £63 million opening pension deficit on an 'ongoing basis' that would increase by 8.9% its opening net liabilities, but does not disclose the figure at the balance sheet date.
Valuation methods disclosed for acquired intangibles Spanish telecoms company Telefónica acquires O2 for €26.1 billion and discloses in detail the fair valuation methods used to determine initial values of the assets acquired.
Adoption of IFRS increases investments in associates by €472 million
Swiss luxury goods company Richemont reverses amortisation of goodwill in associates and reclassifies dividends receivable to investments in associates, which contribute to increasing investment by 17% and net assets by 5% to €6.3 billion.
Less than 20% ownership delivers significant influence UK engineering company Renishaw recognises a £15 million software intangible asset that doubles net assets of an associated undertaking to £30 million.
Put option liability adjusted against minority interests UK packaging company DS Smith recognises a put option held by a minority interest as a £12.3 million liability and adjusts minority interest by this amount, reducing equity by 2.2%.
Acquisition restatement reduces net assets UK beverage company SABMiller completes the initial accounting for prior year business combination and includes subsequent purchases of minority interests that result in a reduction of US$14 million in net assets.
Operating loss of £1.6 billion as UK mobile telecoms company Vodafone recognises £11.6 billion impairment of intangible assets in two geographical segments, which it attributes to rises in long-term interest rates, price competition and regulation.