8.10.4
Equity-accounted investees

  Notes 2019 2018
Equity-accounted investees
Atala SpA, Monza, Italy 1)   50% 50%
Raleigh SA (Pty) Ltd, Kensington, South Africa 2)   20% 20%
Urbanvision BV, Amersfoort, The Netherlands 3)   32% 35%
1) Atala SpA is a joint venture active in the development and sale of bicycles under its own brands.
2) Raleigh SA (Pty) Ltd is an associate that is active in the marketing and sale of bicycles.
3) Urbanvision BV is an associate that holds a 40% share in Carver BV ('s Gravendeel).

 

These associates and joint ventures are of strategic nature; the voting rights are equal to the percentage interest held.

The changes in the equity-accounted investees were as follows:

  2019 2018
  € x 1,000 € x 1,000
Balance at 1 January 5,380 8,304
Investments - 698
Dividend 1) -343 -523
Net income 424 1,321
Remeasurement gain / (loss) on previously held equity interest - 9,192
Fair value of equity interest held before the business combination - -13,603
Currency translation differences 8 -10
Balance at 31 December 5,469 5,380
1) Velosophy distributed a non-cash dividend of € 349 thousand in 2018.

Summary of the financial data for the interests in equity accounted investees:

  Atala SpA   Raleigh SA   Urbanvision BV  
  2019 2018 2019 2018 2019 2018
  € x 1,000 € x 1,000 € x 1,000 € x 1,000 € x 1,000 € x 1,000
Assets 13,823 13,596 553 633 802 728
Liabilities 10,151 9,957 232 425 21 -85
Turnover 19,469 19,720 1,415 1,874 - -
Share in net income 363 678 106 78 -45 -50
             
Share presented 50% 50% 20% 20% 32% 35%

 

Accounting policy

Accell Group's interests in equity-accounted investees comprise interests in associates and a joint venture.

Associates are those entities in which Accell Group has significant influence, but not control or joint control, over the financial and operating policies. A joint venture is an arrangement in which Accell Group has joint control, whereby Accell Group has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities. 

Interests in associates and the joint venture are accounted for using the equity method. They are initially recognized at cost, which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include Accell Group’s share of the profit or loss and OCI of equity-accounted investees, until the date on which significant influence or joint control ceases.

An impairment loss in respect of an equity-accounted investee is measured by comparing the recoverable amount of the investment with its carrying amount. An impairment loss is recognized in profit or loss, and is reversed if there is a favourable change in the estimates used to determine the recoverable amount.