Barclays 2011 Annual Report Download - page 257

35 Reserves
Currency translation reserve
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. Currency translation movements in 2011 of £1,607m (2010: £1,184m), including £598m (2010: £442m) associated with
non-controlling interests, are largely due to the depreciation of the Rand, Euro and Indian Rupee against Sterling.
The impact of the currency translation reserve recognised in the income statement during the year was nil (2010: £279m), as the £23m loss from the
disposal of Barclays Bank Russia was offset by other movements.
Available for sale reserve
The available for sale reserve represents the unrealised change in the fair value of available for sale investments since initial recognition. The reserve
increased £1,380m (2010: decreased £1,245m), largely driven by £2,748m gains from changes in fair value, offset by £1,557m of net gains transferred
to the income statement after recognition of impairment on the Group’s investment in BlackRock, Inc.
Cash flow hedge reserve
The cash flow hedge reserve represents the cumulative gains and losses on effective cash flow hedging instruments that will be recycled to the income
statement when hedged transactions affect profit or loss. Movements in the cash flow hedge reserve principally reflected increases in the fair value of
interest rate swaps held for hedging purposes, partially offset by related gains transferred to net profit.
Other reserves and treasury shares
Other reserves represent the excess of the repurchase price over the nominal of redeemed ordinary and preference shares issues by the Group.
Treasury shares are deducted from shareholders’ equity within other reserves and treasury shares. A transfer is made to retained earnings in line with
the vesting of treasury shares held for the purposes of share based payments.
The treasury shares primarily relate to Barclays PLC shares held by employee benefit trusts in relation to the Group’s various share schemes. These
schemes are described in Note 38.
36 Non-controlling interests
Profit attributable to
non-controlling interests
Equity attributable to
non-controlling interests
2011
£m
2010
£m
2011
£m
2010
£m
Barclays Bank PLC issued:
– Preference shares 465 478 5,929 5,933
– Reserve Capital Instruments 46 113 – 1,418
– Upper Tier 2 instruments 3 3 586 586
Absa Group 401 362 2,861 3,208
Other non-controlling interests 29 29 231 259
Total 944 985 9,607 11,404
The decrease in Absa Group equity attributable to non-controlling interest to £2,861m (2010: £3,208m) is principally due to £583m depreciation of
African currencies against Sterling and £162m of dividends paid, offset by retained profits of £401m.
The reduction in Reserve Capital Instruments as at 31 December 2011 to nil (2010: £1,418m) is due to the buy back, at the Group’s option, of
instruments with a nominal value of $1.25bn and $0.75bn during June and December 2011 respectively.
Barclays PLC Annual Report 2011 www.barclays.com/annualreport 255
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