Arcadis NV – Annual report – 31 December 2017
Industry: engineering consultancy
14 INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (extract)
Arcadis Logos Energia S.A. (ALEN) is a material associate, which holds investments in several energy assets in Brazil. The share capital solely consists of ordinary shares, which are not listed and as such there is no quoted market price available for the shares. The country of incorporation or registration, which is also the principal place of the business, is Brazil.
The Group’s position relating to ALEN as at 31 December 2017 includes:
- Equity investment (49.99% of share capital, representing 49.99% of the voting rights)
- Debt investment via shareholder loans
- Provided guarantees
The tables below summarize the financial information for Arcadis Logos Energia S.A. The information reflects the amounts presented in the financial statements of the associate on a 100%-basis, where applicable adjusted for differences in accounting policies between the Group and the associate.
During 2017, ALEN’s net asset value became negative due to its continued operational losses. As Arcadis shareholder loans are considered to be part of the net investment, the Group continued applying equity accounting and recognizing its share in the operational losses even after total equity value became negative.