BT 2006 Annual Report Download - page 98

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25. SHARE CAPITAL
Share capital
a
Share premium
b
£m £m
Balances at 1 April 2004 432 2
Arising on share issues – 1
Balances at 31 March 2005 432 3
Arising on share issues – 4
Balances at 31 March 2006 432 7
aThe authorised share capital of the company throughout the years ended 31 March 2006 and 31 March 2005 was £13,463 million representing 269,260,253,468 ordinary shares of 5p each.
The allotted, called up and fully paid ordinary share capital of the company at 31 March 2006 was £432 million (2005: £432 million), representing 8,635,377,801 ordinary shares of 5p each (2005:
8,634,629,038). Of the authorised but unissued share capital at 31 March 2006 26 million ordinary shares (2005: 26 million) were reserved to meet options granted under employee share option
schemes.
bThe share premium account, representing the premium on allotment of shares is not available for distribution.
26. 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 39
f
– 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 – 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 31 March 2006 (600) (78) – 44 998 364 750
aDuring the year ended 31 March 2006 the company repurchased 165,772,145 (2005: 101,280,000) of its own shares of 5p each representing 2% of the called-up share capital, for an aggregate
consideration of £365 million (2005: £195 million). At 31 March 2006 290,047,231 shares (2005: 134,497,000) shares with an aggregate nominal value of £15 million are held as treasury shares
at cost.
bThe 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.
cThe 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 £35 million.
dThe 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.
eThe 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.
fThe total impact on reserves of the IAS 32 and IAS 39 transitional adjustments is a charge of £209 million.
BT Group plc Annual Report and Form 20-F 2006 Notes to the consolidated financial statements96