Annual Report and Financial Statements 2007 - Tesco PLC

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70 Tesco PLC Annual report and financial statements 2007 Find out more at www.tesco.com/corporate Notes to the financial statements continued Note 12 Investment property Cost 2007 2006 £m £m At beginning of year 785 595 Foreign currency translation (32) 36 Additions 26 21 Acquisitions through business combinations 32 – Transfers 101 194 Classified as held for sale (4) (58) Disposals (2) (3) At end of year 906 785 Accumulated depreciation and impairment losses At beginning of year 40 30 Foreign currency translation (2) 2 Charge for the period 11 9 Classified as held for sale – (1) Transfers 1 – At end of year 50 40 Net carrying value 856 745 The net carrying value at 26 February 2005 was £565m. The estimated fair value of the Group’s investment property is £1,522m (2006 – £1,373m). This 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.
Note 13 Group entities Significant subsidiaries The Group consolidates its subsidiary undertakings; the principal subsidiaries are: Share of issued ordinary share Country of Business activity capital, and voting rights incorporation Tesco Stores Limited* Retail 100% England Tesco Distribution Limited* Distribution 100% England Tesco Property Holdings Limited* Property 100% England Tesco Insurance Limited* Self-insurance 100% Guernsey Valiant Insurance Company Limited Self-insurance 100% Republic of Ireland One Stop Stores Limited Retail 100% England Tesco Ireland Limited* Retail 100% Republic of Ireland Tesco Global Aruhazak Rt.* Retail 99% Hungary Tesco Polska Sp. z o.o.* Retail 100% Poland Tesco Stores Č R a.s.* Retail 100% Czech Republic Tesco Stores S R a.s.* Retail 100% Slovakia Samsung Tesco Co. Limited* Retail 89% South Korea Ek-Chai Distribution System Co. Limited* Retail 99% Thailand Tesco Stores Malaysia Sdn Bhd* Retail 70% Malaysia Tesco Stores Hong Kong Limited* Purchasing 100% Hong Kong C Two-Network Co. Limited* Retail 100% Japan Hymall* Retail 90% Republic of China dunnhumby Limited* Data Analysis 84% England Tesco Kipa A.S, . Retail 93% Turkey * Held by an intermediate subsidiary. All principal subsidiary undertakings operate in their country of incorporation. The accounting period ends of the subsidiary undertakings consolidated in these financial statements are on or around 24 February 2007, with the exception of Hymall which has an accounting period end of 31 December 2006 owing to its acquisition by the Group at the end of Hymall’s financial year. 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 1985. Interests in joint ventures and associates The Group uses the equity method of accounting for joint ventures and associates. The following table shows the aggregate movement in the Group’s investment in joint ventures and associates: Joint ventures Associates Total £m £m £m At 26 February 2005 409 20 429 Additions 35 1 36 Effect of change in foreign exchange rates 19 1 20 Share of profit/(loss) of joint ventures and associates 85* (2) 83* Income received from joint ventures and associates (82) – (82) Transferred to non-current assets held for sale (10) – (10) At 25 February 2006 456 20 476 Additions 47 3 50 Effect of change in foreign exchange rates (14) – (14) Share of profit of joint ventures and associates 104 2 106 Income received from joint ventures and associates (123) (1) (124) Disposals (a) – (14) (14) Capital reduction (6) – (6) Transferred to subsidiary undertakings (b) (160) – (160) At 24 February 2007 304 10 314 * Includes £1m profit on the discontinued joint venture, Taiwan Charn Yang Developments Limited. 71 NOTES TO THE GROUP FINANCIAL STATEMENTS
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Annual Report and Financial Stateme
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inside... 02 Financial highlights 0
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Operating and financial review Grou
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International On a comparable 52 we
Page 9 and 10:
Total Shareholder Return Total shar
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2007 2006 Total shareholder return
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• Tesco Malaysia has made excelle
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New Space We opened a total of just
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Community, environment and corporat
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Failure to compete with competitors
Page 21 and 22: Interest rate risk management The o
Page 23 and 24: Employment policies The Group depen
Page 25 and 26: attendance also facilitates the com
Page 27 and 28: Corporate Responsibility Risk Regis
Page 29 and 30: Directors’ remuneration report fo
Page 31 and 32: Basic pay Basic pay is designed to
Page 33 and 34: Other elements • Shares In Succes
Page 35 and 36: Tables 1 to 8 are audited informati
Page 37 and 38: Table 4 Share options held by Direc
Page 39 and 40: Table 5 Share options held by Direc
Page 41 and 42: Table 8 Directors’ interests in t
Page 43 and 44: FINANCIAL STATEMENTS CONTENTS State
Page 45 and 46: Independent auditors’ report to t
Page 47 and 48: Group statement of recognised incom
Page 49 and 50: Group cash flow statement Year ende
Page 51 and 52: Note 1 Accounting policies continue
Page 59 and 60: Note 2 Segmental reporting continue
Page 61 and 62: Note 4 Employment costs, including
Page 63 and 64: Note 6 Taxation continued Deferred
Page 65 and 66: Note 7 Discontinued operation and a
Page 67 and 68: Note 10 Goodwill and other intangib
Page 69 and 70: Note 11 Property, plant and equipme
Page 71: Note 11 Property, plant and equipme
Page 75 and 76: Note 13 Group entities continued Th
Page 77 and 78: Note 17 Cash and cash equivalents 2
Page 79 and 80: Note 20 Financial instruments An ex
Page 81 and 82: Note 20 Financial instruments conti
Page 83 and 84: Note 22 Share-based payments contin
Page 85 and 86: Note 23 Post-employment benefits Pe
Page 87 and 88: Note 23 Post-employment benefits co
Page 89 and 90: Note 24 Called up share capital Aut
Page 91 and 92: Note 25 Statement of changes in equ
Page 93 and 94: Note 26 Business combinations conti
Page 95 and 96: Note 26 Business combinations conti
Page 97 and 98: Note 28 Reconciliation of profit be
Page 99 and 100: Note 31 Leasing commitments continu
Page 101 and 102: UK GAAP IFRS 2003 2004 2005 2005 20
Page 103 and 104: Notes to the Parent company financi
Page 107 and 108: Note 9 Borrowings continued Repayme
Page 109 and 110: Note 11 Share-based payments contin
Page 111 and 112: Independent auditors’ report to t
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Annual Report and Financial Statements 2007 - Tesco PLC

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