BT 2014 Annual Report Download - page 178

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175
Financial statements
Financial statements
27. Other reserves
Other comprehensive income
Merger
reserve
£m
Capital
redemption
a reserve
£m
Cash ow
reserve
£m
Available-
for-sale
b reserve
£m
Translation
c reserve
£m
d Total
£m
At 1 April 2011 998 27 128 27 583 1,763
Exchange diere
nces ––––(106) (106)
Recycled foreign exchange on disposal of subsidiary ––––22
Net fair value loss on cash ow hedges – – (56) – – (56)
Recognised in income and expense – – 179 – – 179
Fair value movement on available-for-sale assets – – – (3) – (3)
Tax recognised in other comprehensive income – – (22) –(1) (23)
At 1 April 2012 998 27 229 24 478 1,756
Exchange dierences ––––4646
Recycled foreign exchange on disposal of subsidiary ––––1313
Net fair value loss on cash ow hedges – – 105 – – 105
Recognised in income and expense – – (168) – – (168)
Fair value movement on available-for-sale assets – – – 14 – 14
Tax recognised in other comprehensive income – – 14 –10 24
At 1 April 2013 998 27 180 38 547 1,790
Exchange dierences ––––(176) (176)
Net fair value loss on cash ow hedges – – (528) – – (528)
Recognised in income and expense – – 384 – – 384
Fair value movement on available-for-sale assets – – – (27) – (27)
Tax recognised in other comprehensive income – – 6 – (2) 4
At 31 March 2014 998 27 42 11 369 1,447
a The merger reserve arose on the group reorganisation that occurred in November 2001 and represented the diƪerence between the nominal value of shares in the new parent company, BT{Group{plc, and
the aggregate of the share capital, share premium account and capital redemption reserve of the prior parent company, British Telecommunications plc.
b The cash Ʈow reserve is used to record the eƪective portion of the cumulative net change in the fair value of cash Ʈow hedging instruments related to hedged transactions that have not yet occurred.
Amounts nrecognised in income and expenseo include a net credit to the cash Ʈow reserve of £374m (201213: net debit of £180m, 201112: net credit of £174m) relating to fair value movements on
derivatives. The items generating these foreign exchange movements are in designated cash Ʈow hedge relationships.
c The available-for-sale reserve is used to record the cumulative fair value gains and losses on available-for-sale Ƭnancial assets. The cumulative gains and losses are recycled to the income statement on
disposal of the assets.
d The translation reserve is used to record cumulative translation diƪerences on the assets and liabilities of foreign operations. The cumulative translation diƪerences are recycled to the income statement on
disposal of the foreign operation.