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Notes 11-15

14. Interests in associates, joint ventures and other investments

The movements in 2007 and 2006 were as follows:

  Net
assets of
associates
and joint
ventures
£m
Goodwill
and other
intangibles
of associates
and joint
ventures
£m
Total
associates
and joint
ventures
£m
Other
invest-
ments
£m
1 January 2006 208.2 301.7 509.9 55.3
Additions 1.5 1.5 18.2
Goodwill arising on acquisition
of new associates
13.6 13.6
Share of results of associate
undertakings (note 4)
41.1 41.1
Dividends and other movements (21.5) (2.5) (24.0)
Exchange adjustments (13.9) (17.5) (31.4) (0.8)
Disposals (0.1) (0.6) (0.7) (8.6)
Reclassification from associates
to other investments
(21.0) (41.9) (62.9) 62.9
Reclassification to subsidiaries (8.5) (11.3) (19.8)
Revaluation of other investments 9.5
Goodwill impairment (15.4) (15.4)
Amortisation of other
intangible assets
(0.5) (0.5)
31 December 2006 185.8 225.6 411.4 136.5
Additions 25.3 25.3 61.9
Goodwill arising on acquisition
of new associates
45.2 45.2
Share of results of associate
undertakings (note 4)
41.4 41.4
Dividends and other movements (24.7) (4.5) (29.2)
Exchange adjustments 7.2 12.9 20.1
Disposals (0.4) (0.4) (1.1)
Reclassification from other investments
to associates
0.6 36.2 36.8 (36.8)
Reclassification to subsidiaries 0.3 (0.4) (0.1)
Revaluation of other investments 108.1
Goodwill impairment (10.4) (10.4)
31 December 2007 235.5 304.6 540.1 268.6

The investments included above as 'other investments' represent investments in equity securities that present the Group with opportunity for return through dividend income and trading gains. They have no fixed maturity or coupon rate. The fair values of the listed securities are based on quoted market prices. For unlisted securities, where market value is not available, the Group has estimated relevant fair values on the basis of publicly available information from outside sources or on the basis of discounted cash flow models where appropriate. The revaluation of other investments in 2007 includes the revaluation of the Group's minority equity stake in an unlisted, European media company where the entry price for a new equity participant was at a significant premium to the Group's previous assessment of fair value.

The carrying values of goodwill and other intangible assets in relation to associates and joint ventures are reviewed for impairment in accordance with the Group's accounting policies.

The Group's principal associates and joint ventures at 31 December 2007 included:    
  %
owned
Country of
incorporation
AGB Nielsen Media Research BV 50.0 Netherlands
Asatsu-DK 22.9 Japan
Chime Communications PLC 21.8 UK
Dentsu, Young & Rubicam Inc. 49.0 Japan
High Co S.A. 33.0 France
Ibope Latinoamericana SA 31.2 Brazil
Kinetic Worldwide Limited 50.0 UK
GIIR, Inc 29.0 Korea
The Grass Roots Group PLC 44.9 UK
Singleton, Ogilvy & Mather (Holdings) Pty Limited 33.3 Australia
STW Communitcations Group Limited 19.8 Australia


The market value of the Group's shares in its principal listed associate undertakings at 31 December 2007 was as follows: Asatsu-DK: £146.0 million, Chime Communications PLC: £19.9 million, High Co S.A.: £22.8 million GIIR, Inc: £20.1 million and STW Communications Group Limited: £41.6 million (2006: Asatsu-DK: £167.8 million, Chime Communications PLC: £30.6 million, High Co S.A.: £28.6 million and GIIR, Inc.: £26.4 million).

The carrying value (including goodwill) of these equity interests in the Group's balance sheet at 31 December 2007 was as follows: Asatsu-DK: £145.3 million, Chime Communications PLC: £17.5 million, High Co S.A.: £23.1 million, GIIR, Inc: £17.2 million and STW Communication Group Limited: £37.3 million (2006: Asatsu-DK: £134.3 million, Chime Communications PLC: £15.5 million, High Co S.A.: £19.5 million and GIIR, Inc.: £25.6 million).

The Group's investments in its principal associate undertakings are represented by ordinary shares.

Summarised financial information

The following tables present a summary of the aggregate financial performance and net asset position of the Group's associate undertakings and joint ventures. These have been estimated and converted, where appropriate, to an IFRS presentation based on information provided by the relevant companies at 31 December 2007.

  2007
£m
2006
£m
2005
£m
Income statement
Revenue 1,171.5 1,231.9 1,167.0
Operating profit 181.0 152.6 168.8
Profit before taxation 204.7 200.4 182.8
Profit for the year 136.9 138.8 113.8
  2007
£m
2006
£m
Balance sheet
Assets 3,013.2 2,788.1
Liabilities (1,708.9) (1,524.1)
Net assets 1,304.3 1,264.0

The application of equity accounting is ordinarily discontinued when the investment is reduced to zero and additional losses are not provided for unless the investor has guaranteed obligations of the investee or is otherwise committed to provide further financial support for the investee.

At the end of the year, capital commitments contracted, but not provided for in respect of interests in associates and other investments were £34.7 million (2006: £27.1 million).