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15. Investments accounted for using the equity method

Name of entity
(in millions of euros)

Merseyrail Ltd

Other joint ventures

Total joint ventures

Other associates

Total

Share percentage

50.00%

    

2018

     
      

Current assets

50

8

 

17

 

of which Cash and cash equivalents

38

7

 

7

 

Non-current assets

5

-

 

6

 

Current liabilities

42

4

 

9

 

of which current financial liabilities

-

-

 

-

 

Non-current liabilities

-

-

 

-

 

of which non-current financial liabilities

-

-

 

-

 
  

-

   

Net equity (based on 100%)

13

3

 

12

 

Carrying amount of investments accounted for using the equity method

8

2

10

7

17

      
      

Revenue

183

7

 

34

 

Depreciation, amortisation and impairments

2

-

 

3

 

Result from operating activities

25

2

 

-

 

Finance income

-

-

 

-

 

Finance expense

-

-

 

-

 

Income tax

4

-

 

-

 

Profit for the reporting period

20

2

 

-

 

Total comprehensive income for the reporting period

20

1

 

1

 
      

Share in result of investments accounted for using the equity method

11

3

14

-

14

Share in other comprehensive income

-

-

-

-

-

Share in total comprehensive income of investments accounted for using the equity method

11

3

14

-

14

      

Dividend received

11

3

14

-

14

      
      

Name of entity
(in millions of euros)

Merseyrail Ltd

Other joint ventures

Total joint ventures

Other associates

Total

Share percentage

50.00%

    

2019

     
      

Current assets

68

7

 

20

 

of which Cash and cash equivalents

47

7

 

13

 

Non-current assets

28

-

 

5

 

Current liabilities

58

3

 

9

 

of which current financial liabilities

1

-

 

-

 

Non-current liabilities

21

-

 

-

 

of which non-current financial liabilities

21

-

 

-

 
  

-

   

Net equity (based on 100%)

16

3

 

13

 

Carrying amount of investments accounted for using the equity method

8

1

9

10

19

      
      

Revenue

204

-

 

34

 

Depreciation, amortisation and impairments

7

-

 

2

 

Result from operating activities

29

-

 

-4

 

Finance income

-

-

 

-

 

Finance expense

-

-

 

-

 

Income tax

6

-

 

-

 

Profit for the reporting period

23

-

 

-4

 

Total comprehensive income for the reporting period

23

-

 

-

 
      

Share in result of investments accounted for using the equity method

12

-

12

-4

8

Share in other comprehensive income

-

-

-

-

-

Share in total comprehensive income of investments accounted for using the equity method

12

-

12

-4

8

      

Dividend received

9

-

9

-

9

The investments that are accounted for using the equity method have a carrying amount of €19 million (2018: €17 million). The financial information for these investments is as follows.

Interests in joint ventures

Merseyrail Services Holding Company Ltd

The Merseyrail franchise is operated under a 50:50 joint arrangement with Serco, a listed British company. NS and Serco have joint control, each with a 50% financial interest in the holding entity. The franchise is held by an independent entity in which the holding company concerned has a 100% interest. The profits of the holding company are distributed to NS and Serco in equal shares.

As regards the investments accounted for using the equity method, there are no material contingent assets and/or liabilities. As regards the valuation of the interests in the joint ventures, there are no significant estimates or assessments.

Pursuant to Sections 379 and 414 of Book 2 of the Dutch Civil Code, a complete list of the Group's subsidiaries, associates and joint ventures has been filed with the office of the Trade Register in Utrecht.

Accounting policies

The Group’s interests in investments accounted for using the equity method consist of interests in associates and joint ventures.

Associates are entities in which the Group has significant influence on the financial and operational policy, but which it does not control. A joint venture is an agreement through which the Group shares in the control and in which the Group has rights to the net assets of the arrangement rather than rights with respect to the assets and obligations with respect to the liabilities.

Associates and joint ventures over which control is exercised jointly are accounted for using the equity method and measured at cost upon initial recognition. The cost of the investment includes the transaction costs. After initial recognition, the consolidated financial statements include the Group’s share in the total comprehensive income of the investments accounted for using the equity method, up to the date on which it ceases to exercise significant influence.

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