Aviva 2009 Annual Report Download - page 208

206
Aviva plc Notes to the consolidated financial statements continued
Annual Report and Accounts 2009
35 – Retained earnings
This note analyses the movements in the consolidated retained earnings during the year.
Restated
2009 2008
£m £m
Balance at 1 January as reported 3,902 6,338
Prior year adjustment (see note 2b(ii)) — 96
Balance as 1 January restated 3,902 6,434
Profit/(loss) for the year attributable to equity shareholders 1,085 (915)
Actuarial (losses)/gains on pension schemes (note 47e(iv)) (1,140) (929)
Actuarial losses/(gains) on pension schemes transferred to unallocated
divisible surplus (note 43) 24 78
Dividends and appropriations (note 15) (853) (975)
Shares issued in lieu of dividends 299 170
Shares issued under equity compensation plans (note 34) 60 15
Shares distributed by employee trusts (note 30) (18) (6)
Fair value gains/(losses) realised from reserves (note 34) 1 (1)
Transfer to minority interests following Delta Lloyd IPO (note 3c) 3 —
Aggregate tax effect 62 31
Balance at 31 December 3,425 3,902
The shares issued in lieu of dividends are in respect of the transfer to retained earnings from the ordinary dividend account, arising
from the treatment of these shares explained in note 28(b).
The Group’s regulated subsidiaries are required to hold sufficient capital to meet acceptable solvency levels based on
applicable local regulations. Their ability to transfer retained earnings to the UK parent companies is therefore restricted to the
extent these earnings form part of local regulatory capital.
36 – Minority interests
This note gives details of the Group’s minority interests and shows the movements during the year.
(a) Minority interests at 31 December comprised:
2009 2008 2007
£m £m £m
Equity shares in subsidiaries 2,098 695 660
Share of earnings 795 673 429
Share of other reserves 395 577 450
3,288 1,945 1,539
Preference shares in General Accident plc 250 250 250
Preference shares in other subsidiaries 2 9 6
3,540 2,204 1,795
(b) Movements in the year comprised:
2009 2008
£m £m
Balance at 1 January 2,204 1,795
Profit for the year attributable to minority interests 230 30
Minority share of movements in other reserves 35 —
Foreign exchange rate movements (173) 471
Total comprehensive income attributable to minority interests 92 501
Capital contributions from minority shareholders 6 36
Increase in minority interests following Delta Lloyd IPO (note 3c) 1,460 —
Minority share of dividends declared in the year (109) (106)
Minority interest in acquired subsidiaries (2) 43
Changes in minority interest in existing subsidiaries 11 (65)
Reclassification to financial liabilities (see below) (122) —
Balance at 31 December 3,540 2,204
The minority shareholders in two subsidiaries in France and Italy hold options requiring the Group to purchase their shares. Both
sets of minority shareholders have recently indicated that they intend to exercise these options in 2010. We have therefore
classified their interest as at 31 December 2009 to financial liabilities in the consolidated statement of financial position.