For the short period 1 April 2006 to 3 March 2007
| 2007 £m |
2006 £m |
||||
| Opening | 0.4 | 4.5 | |||
| Exchange differences | – | 0.1 | |||
| Share of profit/(loss) after tax | 0.7 | (4.2) | |||
| Loan to joint venture | 8.1 | – | |||
| Closing | 9.2 | 0.4 |
Investments in joint ventures and associates are measured at cost because their fair values cannot be measured reliably since their equity instruments are unquoted. The range of values which the fair values are estimated to lie within is not expected to be materially different from their carrying values.
The Group’s interest in associates is a 33% holding of AAGUS Financial Services Group NV (“AAGUS”), a company incorporated in The Netherlands. The Group’s interest in joint ventures is a 50% holding in Home Retail Group Personal Finance Limited, a company incorporated in England.
At 3 March 2007, the Group’s share of the assets of AAGUS amounted to £28.5m (2006: £37.4m), and its share of liabilities amounted to £27.4m (2006: £37.0m). The Group’s share of revenue for the period ended 3 March 2007 is £3.3m (2006: £4.1m), and its share of profit/(loss) after tax is £0.7m (2006: (£4.2m)).
Home Retail Group Personal Finance Limited was incorporated during the period. Apart from the initial loan made to the joint venture and its corresponding liability, it has no other assets and liabilities. Home Retail Group Personal Finance Limited did not have any revenue or profit/(loss) during the period.
The Company uses the equity method of accounting for joint ventures and associates.