Lendlease Annual Report 2022

126 Lendlease Annual Report 2022 Notes to Consolidated Financial Statements continued 5. Share of Profit of Equity Accounted Investments Accounting Policies Investments in associates and joint ventures are accounted for using the equity method. The share of profit recognised under the equity method is the Group’s share of the investment’s profit or loss based on ownership interest held. Associates (including partnerships) are entities in which the Group, as a result of its voting rights, has significant influence, but not control or joint control, over the financial and operating policies. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. For associates, this is from the date that significant influence commences until the date that significant influence ceases, and for joint ventures, this is from the date joint control commences until the date joint control ceases. June 2022 June 2021 Note $m $m Associates 1,2 Share of profit 12.a 54 8 Joint Ventures 1,2 Share of profit 12.b 127 92 Total share of profit of equity accounted investments 181 100 1. Reflects the contribution to the Group’s profit, and is after tax paid by the Equity accounted investment vehicles themselves, where relevant. However, for various Equity accounted investments, the share of tax is paid by the Group and is included in the Group’s current tax expense. 2. Share of profit from Associates and Joint Ventures includes $7 million gain (June 2021: $2 million loss) and $4 million gain (June 2021: $23 million loss), respectively, in revaluation gains and losses recognised in the Investments segment adjustment in Note 1 ‘Segment Reporting’. Share of profit from Associates and Joint Ventures include $7 million (June 2021: $nil) and $66 million (June 2021: $88 million gain), respectively, in revaluation gains in the Development segment. 6. Other Income Accounting Policies Net gains or losses on sale/transfer of investments, including consolidated entities and Equity Accounted Investments are recognised when an unconditional contract is in place. Net gains or losses on fair value remeasurements are recognised in accordance with the policies stated in Note 13 ‘Other Financial Assets’ . June 2022 June 2021 1 $m $m Net gain on sale/transfer of investments Consolidated entities 2 375 Asset management contract sale 2 167 - Other financial assets at fair value - 1 Equity accounted investments 86 4 Investment properties 12 - Other assets and liabilities 13 7 Total net gain on sale/transfer of investments 280 387 Net gain on fair value measurement Investment properties 3 4 3 Fair value through profit or loss assets 4 65 61 Total net gain on fair value measurement 69 64 Other 9 36 Total other income 358 487 1. June 2021 results have been re-presented for discontinued operations during the period. Refer to Note 33 'Discontinued Operations' for further details. 2. During the financial year, the Group disposed of a 28 per cent interest in the asset management income stream of the Group's Military Housing portfolio, recording a net gain on sale pre-tax of $167 million. 3. Net gain on fair value measurements for Investment properties includes $4 million gain (June 2021: $1 million loss) recognised in the Investments segment adjustments in Note 1 ‘Segment Reporting’. 4. Net gain on fair value measurements for Fair value through profit or loss assets includes $59 million gain (June 2021: $45 million gain) recognised in the Investments segment adjustments in Note 1 ‘Segment Reporting’. Section A. Performance continued