17. Investments recognised using the equity method
The investments that are accounted for using the equity method, with a carrying amount of € 12 million (2021: € 26 million), are included below. As at 31 December 2022, Merseyrail is included in Assets held for sale.
Name of entity | Merseyrail Ltd | Other participating interests | Total |
Share percentage | 50.00% | ||
2022 | |||
Current assets | - | 14 | |
of which Cash and cash equivalents | - | 7 | |
Fixed assets | - | 9 | |
Current liabilities | - | 3 | |
of which current financial liabilities | - | - | |
Non-current liabilities | - | - | |
of which non-current financial liabilities | - | - | |
Net equity (based on 100%) | - | 21 | |
Carrying amount of investments accounted for using the equity method | - | 12 | 12 |
Revenue | - | 19 | |
Additional government contributions related to COVID-19 | |||
Depreciation, amortisation and impairments | - | 2 | |
Result from operating activities | - | -3 | |
Finance income | - | - | |
Finance expense | - | - | |
Income tax | - | - | |
Profit for the reporting period | - | - | |
Total recognised profit for the reporting period | - | 1 | |
Share in result of investments accounted for using the equity method | - | - | - |
Share in other comprehensive income | - | - | - |
Share in total comprehensive income of investments accounted for using the equity method | - | - | - |
Dividend received | - | - | - |
Name of entity | Merseyrail Ltd | Other participating interests | Total |
Share percentage | 50.00% | ||
2021 | |||
Current assets | 51 | 20 | |
of which Cash and cash equivalents | 25 | 16 | |
Fixed assets | 13 | 7 | |
Current liabilities | 38 | 3 | |
of which current financial liabilities | 6 | - | |
Non-current liabilities | 3 | - | |
of which non-current financial liabilities | 3 | - | |
Net equity (based on 100%) | 22 | 19 | |
Carrying amount of investments accounted for using the equity method | 11 | 15 | 26 |
Revenue | 189 | 22 | |
Additional government contributions related to COVID-19 | |||
Depreciation, amortisation and impairments | 6 | 1 | |
Result from operating activities | 10 | -3 | |
Finance income | - | 1 | |
Finance expense | - | - | |
Income tax | 2 | - | |
Profit for the reporting period | 8 | -1 | |
Total recognised profit for the reporting period | 8 | 1 | |
Share in result of investments accounted for using the equity method | 4 | 1 | 5 |
Share in other comprehensive income | - | - | - |
Share in total comprehensive income of investments accounted for using the equity method | 4 | 1 | 5 |
Of which under Result from discontinued operations | -4 | - | -4 |
Share in total comprehensive income of investments accounted for using the equity method | - | 1 | 1 |
Dividend received | - | - | - |
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 at 31 December 2022, Merseyrail is included in Assets held for sale.
Miscellaneous
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.
From 1 June 2021 to October 2021, the equity interest in Abellio GmbH was accounted for as an investment using the equity method. The measurement of this capital interest for the period 1 June 2021 to October 2021 was kept unchanged at zero. As of 1 October 2021, the equity interest no longer meets the definition of an asset as it is no longer entitled to economic benefits. This position is unchanged as at 31 December 2022.
Accounting policy
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.