Aviva 2001 Annual Report Download - page 82

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32 – Group reserves
Revaluation Profit and loss
reserve Merger reserve account Total
£m £m £m £m
At 1 January 2001 5,999 3,049 2,767 11,815
Transfer from non-technical account – – (841) (841)
Foreign exchange rate movements (33) – (158) (191)
Decrease in value of in-force long-term business (P & 22a) (761) – – (761)
Goodwill on disposals, previously written off ––99
Other movements (27) (74) 95 (6)
At 31 December 2001 5,178 2,975 1,872 10,025
As explained in accounting policy K on page 45, goodwill arising on acquisitions since 1 January 1998 is carried on the balance sheet
and amortised over its useful economic life. The cumulative amounts of positive and negative goodwill charged or credited to the
consolidated profit and loss account, attributable to subsidiary undertakings acquired from 1 January 1968 to 31 December 1997 and
not subsequently sold, are £1,270 million and £18 million respectively. Similar information relating to subsidiary undertakings acquired
before 1968 is not readily available.
The cumulative amount in the profit and loss account reserve relating to unrealised gains and losses is £1,104 million
(2000: £2,412 million).
33 – Company reserves
Movements in the Company’s reserves comprise:
Revaluation Profit and loss
reserve Merger reserve account Total
£m £m £m £m
Profit for the year attributable to equity shareholders, including
dividends paid or proposed by subsidiary undertakings – – 278 278
Dividends ––(874) (874)
Retained loss for the year – – (596) (596)
Unrealised losses (1,194) – – (1,194)
Movements in the year (1,194) – (596) (1,790)
At 1 January 2001 4,393 227 7,195 11,815
At 31 December 2001 3,199 227 6,599 10,025
The cumulative amount in the profit and loss account includes non-distributable gains of £5,735 million (2000: £5,735 million).
As permitted by section 230 of the Companies Act 1985, the profit and loss account of the Company has not been included in
these accounts.
34 – Subordinated debt
Group and Company
2001 2000
£m £m
6.125% £700 million subordinated notes 2036 678 –
5.75% a800 million subordinated notes 2021 479 –
1,157 –
The 6.125% Fixed/Fixed Rate Reset Subordinated Notes 2036 and the 5.75% Fixed/Floating Rate Reset Subordinated Notes 2021
were issued by the Company on 14 November 2001. The Notes rank below the senior obligations and ahead of the preference and
ordinary share capital issued by the Company. The 2036 Notes are callable at par, at the option of the Company, on 16 November 2026
and 14 November 2031. If the Notes are not called, the interest rate payable will be reset to an amount of 2.85% over the Gross
Redemption Yield on the appropriate five-year benchmark gilt on the reset date. The 2021 Notes are callable at par on 14 November
2011 and at three monthly intervals thereafter up to maturity. If the Notes are not called, the interest payable will be reset to an
amount of 2.12% above 3 month Euribor.
The fair value of these notes at 31 December 2001 was £1,133 million (2000: £nil).
80 CGNU plc Annual report + accounts 2001 Notes to the accounts continued