H : Other Information
This section includes additional financial information which is considered relevant to assist users in understanding the financial statements.
H1 : Investments in joint ventures
| Departmental | ||
| 2017 | 2016 | |
| $'000 | $'000 | |
| Thurgoona Industrial Estate (Finance owns 86.07%) | 1,791 | 3,079 |
| Baranduda Industrial Park (Finance owns 77.40%) | 1,820 | 1,819 |
| Total investments in joint ventures | 3,611 | 4,898 |
| Cash distributions (Equity returns) received from joint ventures: $1.2m (2015-16: $1.4m) | ||
Investments in joint ventures are not expected to be sold or fully realised within the next 12 months.
Finance's investment in joint ventures is accounted for using the 'Equity Method' which means the investment asset is carried at cost adjusted for post-acquisition changes in Finance's share of net assets of the joint ventures. Finance has equity in two joint arrangements, one with the City of Albury (Thurgoona Industrial Estate) and one with the City of Wodonga (Baranduda Industrial Park). These joint arrangements involve the development and sale of industrial lots in separate precincts situated within the local government boundaries of Albury and Wodonga.
Equity contributions involve land, estate development costs, rates, maintenance and selling costs. Development works have been completed and finished lots are currently being marketed.
The terms of each agreement provide that the "rights, duties, obligations, and liabilities of the parties shall be several and not joint nor joint and several". This means that the arrangements are not partnerships.
