Annual Report 2019

195 ANNUAL REPORT 2019 22. INTERESTS IN ASSOCIATES 2019 2018 HK$’million HK$’million Share of net assets of associates, net of impairment: Listed associates 28,424 26,984 Unlisted associates 24,460 13,616 52,884 40,600 Goodwill: Listed associates 2,394 2,447 Unlisted associates 2,774 2,774 5,168 5,221 Total 58,052 45,821 In prior years, the directors of the Company conducted a review of the Group’s interest in a listed associate with reference to its economic outlooks and assessed its recoverable amount, with reference to its value in use and fair value less costs of disposal. The recoverable amount was determined to be the then fair value less costs of disposal (where the fair value was valued based on quoted prices in active markets for the identical asset directly and categorised as level 1 of the fair value measurement hierarchy) and was less than the carrying amount of the Group’s interest in the said listed associate by HK$739 million. Accordingly, impairment loss of the same amount was recognised in profit or loss in prior years. The management of the Group carried out an assessment as at 31 December 2019 and 2018 for whether there is any indication that the impairment loss recognised in prior years for the listed associate may no longer exist or may be decreased. The management of the Group concluded that the indications of impairment previously identified still existed as at 31 December 2019 and 2018, no reversal of impairment loss has been recognised. Particulars of the Group’s principal associates at 31 December 2019 are set out in note 45. The Group’s material associate at the end of the reporting period includes Shanghai International Port (Group) Co., Ltd. (“SIPG”). All of the Group’s associates are accounted for using equity method in the consolidated financial statements. Summarised financial information in respect of SIPG and its subsidiaries (the “SIPG Group”) is set out below. Other associates invested by the Group are not individually material. The summarised financial information below represents the financial information of the SIPG Group prepared in accordance with the significant accounting policies of the Group.