Accounting Policies

Investments in Group companies are valued at cost less accumulated impairment.

Investments

2 December
2018
£m
3 December
2017
£m
Cost476.5476.5
Contributions to subsidiaries:
– Novation of derivative liability in respect of warrants issued by Ocado Limited1.11.1
– Group share-based payments48.134.9
Carrying value at end of period525.7512.5

Investments represent investments in Group companies, Ocado Holdings Limited and Ocado Innovation Limited. A list of subsidiary undertakings held by the Company is disclosed in note 5.1 to the consolidated financial statements.

Subsidiaries are recharged for the amount recognised as share-based payments relating to awards to their employees. These are recognised as an increase in the investment in relevant subsidiaries in accordance with IFRS 2 "Share-based Payments".