Table:
| £m | 2019 | 2018 |
| --- | --- | --- |
| At 1 January | 65.6 | 64.8 |
| Share of post-tax (loss)/profit of associates | (0.3) | 2.3 |
| Impairment | (7.4) | – |
| Foreign exchange movements | (4.2) | (1.5) |
| At 31 December | 53.7 | 65.6 |
Paragraphs:
18 Investment in associates
Investment in associates comprises a 32.4 per cent holding in the ordinary shares of Prozone Intu Properties Limited (Prozone), a listed Indian shopping centre developer, and a 26.8 per cent direct holding in the ordinary shares of Empire Mall Private Limited (Empire) – Empire also forms part of the Prozone group giving the Group an effective ownership of 38.0 per cent. Both companies are incorporated in India.
The equity method of accounting is applied to the Group’s investments in Prozone and Empire in line with the requirements of IAS 28 Investments in Associates and Joint Ventures. The results for the year to 30 September have been used as 31 December information is not available in time for these financial statements. Those results are adjusted to be in line with the Group’s accounting policies and include the most recent property valuations, determined at 30 September 2019, by independent professionally qualified external valuers in line with the valuation methodology described in note 13.
The market price per share of Prozone at 31 December 2019 was INR19 (31 December 2018: INR29), valuing the Group’s interest at £9.9 million (31 December 2018: £16.4 million) compared with the Prozone carrying value pre-impairment of £41.5 million (31 December 2018: £45.1 million). As the share price of Prozone is lower than its carrying value, a review of the carrying value of Prozone and the Group’s direct interest in Empire (as it also forms part of the Prozone group) has been undertaken. Underpinning the impairment assessment (where the fair value less costs to sell was considered) were the independent third-party valuations received for the investment and development properties, representing the underlying value of the associate’s net assets. Assumptions were also made for tax and other costs that would be reasonably expected if these assets were to be disposed of. Following this review, an impairment of £7.4 million was recognised.
Question:
What does investment in associates comprise of?
Answer: 32.4 per cent holding in the ordinary shares of Prozone Intu Properties Limited (Prozone), a 26.8 per cent direct holding in the ordinary shares of Empire Mall Private Limited (Empire)