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13. Investments in associates and joint ventures

2019
$m

2018
$m

Investments in associates - unlisted

-

-

Investments in joint ventures - unlisted

150

100

Total investments in associates and joint ventures

150

100

Reconciliation of movements in investments in associates and joint ventures

2019
$m

2018
$m

Balance at beginning of financial year

100

80

Additions1

60

28

Impairment loss recognised in profit or loss

-

(20)

Share of profits after income tax

33

39

Dividends received

(27)

(40)

Other

(16)

13

Balance at end of financial year

150

100

  1. 1 During the year, AGL made $60 million of capital contributions to the Powering Australian Renewables Fund in accordance with the terms of the Investor Agreement and Commitment Deed.

Principal activities

Ownership interest

Carrying value

2019
%

2018
%

2019
$m

2018
$m

Associates

CSM Energy Limited1

Coal mine methane gas extraction

-

35

-

-

Matter Technology Ltd

Energy management services

20

19.9

-

-

Solar Analytics Pty Ltd2

Solar PV monitoring

31.2

37.2

-

-

Sunverge Energy Inc3

Energy storage and management services

15.6

22

-

-

Joint ventures

ActewAGL Retail Partnership

Gas and electricity retailer

50

50

50

45

Energy Infrastructure Management Pty Ltd

Pipeline management services

50

50

4

2

Central Queensland Pipeline Pty Ltd

Gas pipeline development

50

50

-

-

Powering Australian Renewables Fund

Development and owner of renewable energy generation projects

20

20

96

53

Total investments in associates and joint ventures

150

100

  1. 1 CSM Energy was dissolved and deregistered on 22 April 2019.
  2. 2 During the year, Solar Analytics completed a capital raise in which AGL did not partake. As a result AGL's ownership interest was diluted by 6%.
  3. 3 During the year, Sunverge Energy completed a capital raise in which AGL did not partake. As a result AGL's ownership interest was diluted by 6.4%, and no longer has significant influence.

All the above entities are incorporated and operate in Australia except for Sunverge Energy Inc, which is incorporated and predominantly operating in the USA.

Aggregate information of joint ventures that are not individually material

2019
$m

2018
$m

Current assets

546

336

Non-current assets

1,221

831

Total assets

1,767

1,167

Current liabilities

223

210

Non-current liabilities

1,043

597

Total liabilities

1,266

807

Net assets

501

360

Revenue

1,037

852

Expenses

(966)

(774)

AGL’s share of joint ventures’ profit

33

39

Commitments and contingent liabilities

AGL’s share of commitments and contingent liabilities of associates and joint ventures are disclosed in Notes 24.b and 25 respectively.

ACCOUNTING POLICY

Investments in equity accounted investees

AGL’s interests in equity accounted investees comprise interests in associates and joint ventures. Associates are those entities in which AGL has significant influence, but not control, over the financial and operating policies of the entity. A joint venture is an arrangement in which AGL has joint control and AGL has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities.

Investments in associates and joint ventures are accounted for using the equity method.

Under the equity method, investments in associates and joint ventures are initially recognised in the Consolidated Statement of Financial Position at cost and adjusted thereafter to recognise AGL’s share of the profit or loss and other comprehensive income of the associates and joint ventures.

An impairment loss is measured by comparing the recoverable amount of the investment with its carrying amount. An impairment loss is recognised in profit or loss and is reversed if there has been a favourable change in estimates used to determine the recoverable amount.

Unrealised gains on transactions between AGL and an associate or a joint venture are eliminated to the extent of AGL’s interest in the associate or joint venture. Unrealised losses are also eliminated, but only to the extent that there is no evidence of an impairment.

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