Barclays 2009 Annual Report Download - page 246

244 Barclays PLC Annual Report 2009 www.barclays.com/annualreport09
Notes to the accounts
For the year ended 31st December 2009
continued
31 Ordinary shares, share premium, and other equity continued
The independent trustee of the Barclays Group (PSP and ESOS) Employees’ Benefit Trust (PSP Trust), established by Barclays Bank PLC in 1996, operates
the Performance Share Plan (PSP) and may satisfy awards under the ESOS. No awards have been made under this trust since 1999. All awards are in the
form of options over Barclays shares.
The Sharepurchase scheme which was established in 2002 is open to all eligible UK employees, including executive Directors. The key terms of the
Sharepurchase scheme are described in Note 44.
The Global Sharepurchase scheme which was established in 2009 is open to all eligible non UK employees, excluding executive Directors. The key terms
of the Global Sharepurchase scheme are described in Note 44.
32 Reserves
Other reserves
Capital Other Available Cash flow Currency
redemption capital for sale hedging translation
reserve reserve reserve reserve reserve Total
£m £m £m £m £m £m
At 1st January 2009 394 617 (1,190) 132 2,840 2,793
Net gains from changes in fair value – – 1,194 287 – 1,481
Net gains transferred to net profit – – (415) (92) – (507)
Currency translation differences – – – – (1,223) (1,223)
Net losses transferred to net profit due to impairment – – 670 – – 670
Changes in insurance liabilities – – (67) – – (67)
Net gains transferred to net profit due to fair value hedging – – (123) – – (123)
Tax – – (179) (75) (2) (256)
At 31st December 2009 394 617 (110) 252 1,615 2,768
At 1st January 2008 384 617 154 26 (307) 874
Net (losses)/gains from changes in fair value – – (1,736) 252 – (1,484)
Net (gains)/losses transferred to net profit – – (212) 19 – (193)
Currency translation differences – – – – 2,307 2,307
Net losses transferred to net profit due to impairment – – 382 – – 382
Changes in insurance liabilities – – 17 – – 17
Net gains transferred to net profit due to fair value hedging – – (2) – – (2)
Tax – – 207 (165) 840 882
Repurchase of shares 10––––10
At 31st December 2008 394 617 (1,190) 132 2,840 2,793
Available for sale net gains transferred to net profit includes £349m gain (2008: £212m gain) relating to continuing operations and £66m gain (2008: £nil)
relating to discontinued operations.
The capital redemption reserve and other capital reserve represent transfers from retained earnings in accordance with relevant legislation. These reserves
are not distributable.
The available for sale reserve represents the unrealised change in the fair value of available for sale investments since initial recognition.
The cash flow hedging reserve represents the cumulative gains and losses on effective cash flow hedging instruments that will be recycled to the income
statement when the hedged transactions affect profit or loss.
The currency translation reserve represents the cumulative gains and losses on the retranslation of the Group’s net investment in foreign operations, net
of the effects of hedging.
Transfers from cash flow hedging reserve
Gains and losses transferred from the cash flow hedging reserve were to: interest income: £22m loss (2008: £4m loss), interest expense: £272m gain
(2008: £74m loss), net trading income: £165m loss (2008: £119m gain), and administration and general expenses: £7m gain (2008: £60m loss).