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NOTE 35 — INVESTMENTS IN ASSOCIATES

Details of the Group’s investments in associates are as follows:

NAME
PRINCIPAL
ACTIVITIES
INVESTMENT
INTEREST
CONTRIBUTION TO
CARRYING AMOUNT OPERATING PROFIT
2008
%
2007
%
2008
$’000
2007
$’000
2008
$’000
2007
$’000
Atlab Holdings
Pty Limited
Multiple copy film
release printing
and post-production
facility
(g) 50 50 1,500 6,584 (4,084) 2,705
Cinesound
Movietone
Productions
Pty Limited
Film owner and 50
distributor
50 50 247 175 72 39
Filmpalast am
ZKM Karlsruhe
GmbH & Co KG
Film exhibitor 50 50 2,160 3,124 1,053 1,088
Filmpalast
Konstanz
GmbH & Co KG
Film exhibitor 50 50 591 603 173 90
Greater Union
Kieft BV
Film exhibitor (f) 50 50 277 555 7,126 452
MAF Greater
Union LLC
Film exhibitor 49 49 10,867 12,806 7,683 6,475
Roadshow
Distributors
Pty Limited
Film distributor (e) — 50 — 62,943 2,115 15,112
Rydges Rotorua
Hotel Limited
Hotel owner (d) 25 (d) 25 1,809 2,083 (10) 375
17,451 88,873 14,128 26,336
Less: Discontinued Operations (Note 5)
Roadshow Distributors Pty Limited 2,115 15,112
12,013 11,224

(a) Dividends received from associates for the year ended 30 June 2008 by the Group amount to $16,744,000 (2007: $12,371,000).
(b) MAF Greater Union LLC was incorporated in the United Arab Emirates. CS Konstanz GmbH and Filmpalast an ZKM Karlsruhe GmbH were incorporated in Germany. Greater Union Kieft BV was
incorporated in The Netherlands. All other associates were incorporated in Australia.
(c) The balance date of all associates is 30 June, with the exception of MAF Greater Union LLC which has a balance date of 31 December.
(d) Rydges Rotorua Hotel Limited has been equity accounted from 1 July 2006. The 2007 amount includes an adjustment of $130,000 on adoption of equity accounting.
(e) The interest in this associate was disposed of during the 2008 financial year.
(f)
The Group through its 50% interest in Greater Union Kieft BV, held a 33.3% interesting a cinema site in The Netherlands. This interest was sold effective 20 February 2008, resulting in a profit on
sale of $6,691,000.
(g) Impairment loss recognised
The Parent Entity and the Group have recognised impairment losses against the carrying values of their 50% interest in the Atlab Holdings Pty Limited Group (“Atlab”). In the Parent Entity financial
statements the investment in Atlab is accounted for at cost, where as in the Group financial statements the investment is accounted for using the equity method. This has resulted in different
impairment losses being recognised in the Group and the Parent Entity financial statements. In the Group financial statements the investment in Atlab has been written down by $4,253,000,
whereas in the Parent Entity financial statements an impairment loss of $12,250,000 has been recognised. Atlab has experienced a significant decline in earnings over the year to 30 June 2008,
which has lead to a reassessment of the carrying value of the investment. The assessed recoverable amount was determined as the present value of future cash flows to be derived from the
investment. In making this determination, a pre-tax discount rate of 12.75% per annum was used.