Aviva 2005 Annual Report Download - page 199

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E – Reserves
Investment Equity
Merger valuation compensation Retained
reserve reserve reserve earnings
£m £m £m £m
Balance at 1 January 2004 227 9,307 – 1,270
Arising in the year:
Profit for the year –––94
Fair value gains on investments in subsidiaries – 2,494 – –
Dividends and appropriations – – – (570)
Reserves credit for equity compensation plans – – 21 –
Shares issued in lieu of dividends – – – 103
Issue of Direct Capital Instrument – – – (9)
Balance at 31 December 2004 227 11,801 21 888
Arising in the year:
Profit for the year – – – 1,347
Fair value gains on investments in subsidiaries – 1,521 – –
Dividends and appropriations – – – (657)
Reserves credit for equity compensation plans – – 22 –
Shares issued in lieu of dividends – – – 100
Shares issued on acquisition of subsidiary 508–––
Aggregate tax effect – – – 13
Other movements –––(1)
Balance at 31 December 2005 735 13,322 43 1,690
F – Borrowings
The Company’s borrowings comprise:
2005 2004
£m £m
Subordinated debt 2,808 2,847
9.5% guaranteed bonds 2016 198 198
8.625% guaranteed bonds 2005 –200
Commercial paper 499 870
3,505 4,115
Repayable as follows:
One year or less 499 1,070
After five years 3,006 3,045
3,505 4,115
Further details of these borrowings can be found in note 43.
G – Derivative financial instruments
(i) Non-hedge derivatives
The Company’s non-hedge derivative activity at 31 December 2005 was as follows:
2005 2004
Contract/ Contract/
notional Fair value Fair value notional Fair value Fair value
amount asset liability amount asset liability
£m £m £m £m £m £m
Foreign exchange contracts
OTC
Forwards 40 – (1) 170 – (1)
Total 40 – (1) 170 – (1)
Interest rate contracts
OTC
Swaps –––65 – (5)
Total –––65 – (5)
Financial statements
Aviva plc 2005