Chapters
Annual Report 2018

14. Associates and Joint Ventures

Accounting Policy
Associates are all entities over which the Group has significant influence but not control, generally accompanying a shareholding between 20% and 50% of the voting rights. Investments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations of each investor. The Group’s interest in the joint arrangement in India is classified as a joint venture.

Joint ventures and associates are accounted for using the equity method, which involves recognition in the consolidated Income Statement of the Group’s share of the net result of the joint ventures and associates for the year. The Group’s share of movements in other comprehensive income is recognized in Other Comprehensive Income. The Group’s interest in a joint venture or associate is carried in the consolidated Balance Sheet at its share in the net assets of the joint venture or associate together with goodwill paid on acquisition, less any impairment loss.

The Group determines at each reporting date whether there is an objective evidence that the investments in its associates and joint ventures is impaired. When the share in the losses exceeds the carrying amount of an equity-accounted company (including any other receivables forming part of the net investment in the company, net of expected credit losses), the carrying amount is written down to nil and recognition of further losses is discontinued, unless legal or constructive obligations relating to the company in question have been incurred. The related impairment charge is recognized in ‘Share of result of Associates and Joint Ventures‘ in the consolidated Income Statement.

If the ownership interest in its associates and joint ventures is reduced but significant influence is retained, only a proportionate share of the amounts previously recognized in Other Comprehensive Income is reclassified to the consolidated Income Statement where appropriate.

The Group’s investments in the Associates and Joint Ventures:

in thousands of EUR

31 December 2018

31 December 2017

Reliance-Vision Express Private Ltd and Reliance-GrandVision India Supply Private Ltd

844

936

Other Associates

247

259

1,091

1,195

Share of result of Associates and Joint Ventures:

in thousands of EUR

2018

2017

Visilab S.A.

-

2,853

Reliance-Vision Express Private Ltd and Reliance-GrandVision India Supply Private Ltd

- 675

- 949

Other Associates

- 27

28

- 702

1,932

The movements in investments in the Associates and Joint Ventures are as follows:

in thousands of EUR

2018

2017

At 1 January

1,195

36,345

Share of result of Associates and Joint Ventures

- 702

1,932

Capital contributions in Associates and Joint Ventures

629

-

Dividend received

-

- 6,090

Change in control of Visilab

-

- 31,129

Acquisitions

-

233

Currency translation differences

- 31

- 96

At 31 December

1,091

1,195

In 2017, GrandVision increased its shareholding in and obtained control of Visilab, which resulted in Visilab becoming a subsidiary of GrandVision. In 2017, the Group's share of result of Visilab represents the amount until the acquisition date.