|
25.
OTHER RESERVES AND RETAINED EARNINGS
| |
|
Treasury
shares |
a |
|
Cash
flow
reserve |
b |
|
Available-for
-sale reserve |
c |
|
Translation
reserve |
d |
|
Merger
and other
reserves |
e |
|
Total
other
reserves |
|
|
Retained
earnings |
|
| |
|
£m |
|
|
£m |
|
|
£m |
|
|
£m |
|
|
£m |
|
|
£m |
|
|
£m |
|
|
|
|
At
1 April 2004
|
|
(80 |
) |
|
– |
|
|
– |
|
|
– |
|
|
998 |
|
|
918 |
|
|
(2,439 |
) |
|
Profit
for the year
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
1,829 |
|
|
Foreign
exchange adjustments
|
|
– |
|
|
– |
|
|
– |
|
|
27 |
|
|
– |
|
|
27 |
|
|
– |
|
|
Share
based payments
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
20 |
|
|
Dividends
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
(786 |
) |
|
Net
purchase of treasury shares
|
|
(176 |
) |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
(176 |
) |
|
– |
|
|
Actuarial
gain
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
294 |
|
|
Tax
on items taken directly to equity
|
|
– |
|
|
– |
|
|
– |
|
|
(7 |
) |
|
– |
|
|
(7 |
) |
|
(72) |
|
|
|
|
At
31 March 2005
|
|
(256 |
) |
|
– |
|
|
– |
|
|
20 |
|
|
998 |
|
|
762 |
|
|
(1,154 |
) |
|
Transition
to IAS 32 and IAS 39f
|
|
– |
|
|
77 |
|
|
– |
|
|
– |
|
|
– |
|
|
77 |
|
|
(286 |
) |
|
|
|
At
1 April 2005
|
|
(256 |
) |
|
77 |
|
|
– |
|
|
20 |
|
|
998 |
|
|
839 |
|
|
(1,440 |
) |
|
Profit
for the year
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
1,548 |
|
|
Foreign
exchange adjustments
|
|
– |
|
|
– |
|
|
– |
|
|
53 |
|
|
– |
|
|
53 |
|
|
– |
|
|
Share
based payments
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
65 |
|
|
Dividends
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
(912 |
) |
|
Net
purchase of treasury shares
|
|
(344 |
) |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
(344 |
) |
|
– |
|
|
Actuarial
gain
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
2,122 |
|
|
Net
fair value gains on cash flow hedges
|
|
– |
|
|
4 |
|
|
– |
|
|
– |
|
|
– |
|
|
4 |
|
|
– |
|
|
Gains
on available-for-sale investments
|
|
– |
|
|
– |
|
|
35 |
|
|
– |
|
|
– |
|
|
35 |
|
|
– |
|
|
Fair
value loss on net investment hedge
|
|
– |
|
|
– |
|
|
– |
|
|
(20 |
) |
|
– |
|
|
(20 |
) |
|
– |
|
|
Recognised
in income and expense in the year
|
|
– |
|
|
(204 |
) |
|
(35 |
) |
|
(9 |
) |
|
– |
|
|
(248 |
) |
|
– |
|
|
Tax
on items taken directly to equity
|
|
– |
|
|
45 |
|
|
– |
|
|
– |
|
|
– |
|
|
45 |
|
|
(633 |
) |
|
|
|
At
1 April 2006
|
|
(600 |
) |
|
(78 |
) |
|
– |
|
|
44 |
|
|
998 |
|
|
364 |
|
|
750 |
|
|
Profit
for the year
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
2,850 |
|
|
Foreign
exchange adjustments
|
|
– |
|
|
– |
|
|
– |
|
|
(93 |
) |
|
– |
|
|
(93 |
) |
|
– |
|
|
Share
based payments
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
71 |
|
|
Dividends
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
(1,053 |
) |
|
Net
purchase of treasury shares
|
|
(284 |
) |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
(284 |
) |
|
– |
|
|
Actuarial
gain
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
1,409 |
|
|
Net
fair value losses on cash flow hedges
|
|
– |
|
|
(201 |
) |
|
– |
|
|
– |
|
|
– |
|
|
(201 |
) |
|
– |
|
|
Recognised
in income and expense in the year
|
|
– |
|
|
364 |
|
|
– |
|
|
– |
|
|
– |
|
|
364 |
|
|
– |
|
|
Tax
on items taken directly to equity
|
|
– |
|
|
(62 |
) |
|
– |
|
|
– |
|
|
– |
|
|
(62 |
) |
|
(342 |
) |
|
|
|
At
31 March 2007
|
|
(884 |
) |
|
23 |
|
|
– |
|
|
(49 |
) |
|
998 |
|
|
88 |
|
|
3,685 |
|
|
|
| |
|
| a |
During
the year ended 31 March 2007 the company repurchased
147,550,000 (2006: 165,772,145, 2005: 101,280,000)
of its own shares of 5p each representing 2% of
the called-up share capital, for consideration (including
transaction costs) of £404 million (2006:
£365 million, 2005: £195 million). In
addition, 66,719,600 shares (2006: 10,221,961, 2005:
11,131,503) were issued from treasury to satisfy
obligations under employee share schemes at a cost
of £120 million (2006: £21 million,
2005: £19 million). At 31 March 2007, 370,877,631
shares (2006: 290,047,231) shares with an aggregate
nominal value of £19 million are held as treasury
shares at cost. |
| b |
The
cash flow reserve is used to record the effective
portion of the cumulative net change in the fair
value of cash flow hedging instruments related to
hedged transactions that have not yet occurred. |
| c |
The
available-for-sale reserve is used to record the
cumulative fair value gains and losses on available-for-sale
financial assets. The cumulative gains and losses
are recycled to the income statement on disposal
of the assets. The gross gain in the period amounted
to £nil (2006: £35 million). |
| d |
The
translation reserve is used to record cumulative
translation differences on the assets and liabilities
of foreign operations. The cumulative translation
differences are recycled to the income statement
on disposal of the foreign operation. |
| e |
The
merger reserve arose on the group reorganisation
that occurred in November 2001 and represents the
difference between the nominal value of shares in
the new parent company, BT Group plc, and the share
capital, share premium and capital redemption reserve
of the prior parent company, British Telecommunications
plc. Other reserves included within this caption
relate primarily to unrealised gains and losses
on the transfer of assets and group undertakings
to a joint venture. |
| f |
The
total impact on reserves of the IAS 32 and IAS 39
transitional adjustment is a charge of £209
million. |
|
