Aviva 2007 Annual Report Download - page 243
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Aviva plc
Annual Report and
Accounts 2007
239
Financial
statements
A – Investments in subsidiaries
(i) Movements in the Company’s investments in its subsidiaries are as follows:
2007 2006
£m £m
Fair value as at 1 January 27,886 22,919
Additions –1,562
Disposals –(670)
Movement in fair value (3,420) 4,075
At 31 December 24,466 27,886
(ii) At 31 December 2007, the Company has two wholly-owned subsidiaries, both incorporated in Great Britain.
These are General Accident plc and Aviva Group Holdings Limited. Aviva Group Holdings Limited is an intermediate
holding company, whilst General Accident plc no longer carries out this function. The principal subsidiaries of the Aviva
Group at 31 December 2007 are listed on pages 268 and 269.
B – Operating expenses
(i) Operating expenses
Operating expenses comprise:
2007 2006
£m £m
Staff costs and other employee related expenditure (see below) 92 87
Other operating costs 95 71
Net foreign exchange losses 643
Total 193 201
(ii) Staff costs
Total staff costs were:
2007 2006
£m £m
Wages and salaries 46 53
Social security costs 66
Post-retirement obligations
Defined benefit schemes (see (iii) below) 66
Defined contribution schemes 22
Profit sharing and incentive plans 13 1
Equity compensation plans (see (iv) below) 17 17
Termination benefits 22
Total 92 87
(iii) Pension costs
The Company is one of a number of UK companies being charged for its employees participating in the Aviva Staff
Pension Scheme, and its contributions are affected by the financial position of the scheme. There is no contractual
agreement or policy for charging the net defined benefit cost for this scheme across the participating Group entities but,
instead, this cost is recognised in the financial statements of the main UK employing company. The Company therefore
recognises a pension expense equal to its contributions payable in the year for its staff, together with the service cost of
any unfunded benefits, within staff costs above.
Full disclosure on the Group’s pension schemes is given in note 46.
(iv) Equity compensation plans
All transactions in the Group’s equity compensation plans involve options and awards for ordinary shares of the Company.
Full disclosure of these plans is given in note 29. The cost of such options and awards is borne by all participating
businesses and, where relevant, the Company bears an appropriate charge. As the majority of the charge to the Company
relates to directors’ options and awards, for which full disclosure is made in the Directors’ remuneration report, no further
disclosure is given here on the grounds of immateriality.
Notes to the Company financial statements
For the year ended 31 December 2007