Tesco 2015 Annual Report Download - page 112

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Note 12 Investment property
2015
£m
2014
£m
Cost
At beginning of the year 283 2,317
Foreign currency translation (4) (114)
Additions ––
Reclassification 87 (1,908)
Classified as held for sale (51) –
Disposals (30) (12)
At end of the year 285 283
Accumulated depreciation and impairment losses
At beginning of the year 56 316
Foreign currency translation (5) (17)
Depreciation charge 119
Impairment charge 21 21
Reversal of impairment charge (20) –
Reclassification 92 (282)
Classified as held for sale (1) –
Disposals (23) (1)
At end of the year 121 56
Net carrying value at end of the year 164 227
The estimated fair value of the Group’s investment property is £0.3bn (2014: £0.4bn). This fair value has been determined by applying an appropriate rental
yield to the rentals earned by the investment property. A valuation has not been performed by an independent valuer.
In the year there has been a £21m impairment charge for investment property which has been classified as ‘Impairment of PPE and onerous lease provisions
included within (losses)/profits arising on property-related items’.
In the prior year, it was concluded that the level of services provided to tenants of some malls operated by the Group were no longer considered insignificant
and as a result a number of malls with a net book value of £1,623m were reclassified from investment property to property, plant and equipment.
Note 13 Group entities
Principal subsidiaries
The Group consolidates its subsidiary undertakings and its principal subsidiaries are:
Business activity
Share of issued
ordinary share capital
and voting rights
Country of incorporation
and principal country
of operation
Tesco Stores Limited Retail 100% England
One Stop Stores Limited*Retail 100% England
Tesco Ireland Limited Retail 100% Republic of Ireland
Tesco-Global Stores Privately Held Co. Limited Retail 100% Hungary
Tesco Polska Sp. z o.o. Retail 100% Poland
Tesco Stores CR a.s. Retail 100% Czech Republic
Tesco Stores SR a.s. Retail 100% Slovakia
Tesco Kipa Kitle Pazarlama Ticaret ve Gida Sanayi A S Retail 95% Turkey
Homeplus Co. Limited Retail 100% South Korea
Homeplus Tesco Co. Limited Retail 100% South Korea
Ek-Chai Distribution System Co. Limited Retail 86%** Thailand
Tesco Stores (Malaysia) Sdn Bhn Retail 70% Malaysia
Dobbies Garden Centres Limited Retail 100% Scotland
Tesco Personal Finance Group Limited* (trading as Tesco Bank) Financial Services 100% Scotland
Tesco Distribution Limited Distribution 100% England
Tesco Property Holdings Limited Property 100% England
Tesco International Sourcing Limited Purchasing 100% Hong Kong
dunnhumby Limited Data Analysis 100% England
Tesco Corporate Treasury Services PLC*Financial Services 100% England
Tesco Food Sourcing Limited Sourcing 100% England
Tesco International Internet Retailing Limited*Retail 100% England
Tesco Joint Buying Service (Shanghai) Co. Limited Retail 100% People’s Republic of China
* Held by the Parent Company (all other principal subsidiaries are held by an intermediate subsidiary).
** The Group has 86% of voting rights and 39% of issued ordinary share capital in Ek-Chai Distribution System Co. Limited.
The accounting period ends of the subsidiary undertakings consolidated in these financial statements are on or around 28 February 2015. The Group has
taken advantage of the exemption under section 410(2) of the Companies Act 2006 by providing information only in respect of the subsidiary undertakings
whose results or financial position, in the opinion of the Directors, principally affect the financial statements. A full list of the Group’s subsidiary undertakings
will be annexed to the next Annual Return filed at Companies House. There are no significant restrictions on the ability of subsidiary undertakings to transfer
funds to the parent, other than those imposed by the Companies Act 2006.
110 Tesco PLC Annual Report and Financial Statements 2015
Notes to the Group financial statements continued