BT 2011 Annual Report Download - page 141

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138
FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
28. Other reserves
Other comprehensive income
Treasury Merger Cash flow Available-for- Translation Total other
sharesareservebreservecsale reservedreserveereserves
£m £m £m £m £m £m
At 1 April 2008 (1,843) 998 157 – 161 (527)
Exchange differences – – – – 683 683
Net fair value gain on cash flow hedges – – 2,719 – – 2,719
Recognised in income and expense – – (2,144) – – (2,144)
Reclassified and reported in non-current assets – – (5) – – (5)
Fair value movements on available-for-sale assets – – – 5 – 5
Tax recognised in other comprehensive income – – (164) – – (164)
Net purchase of treasury shares (63) ––––(63)
Cancellation of treasury shares 797 ––––797
At 1 April 2009 (1,109) 998 563 5 844 1,301
Exchange differences – – – – (119) (119)
Net fair value loss on cash flow hedges – – (1,067) – – (1,067)
Recognised in income and expense – – 496 – – 496
Reclassified and reported in non-current assets – – (4) – – (4)
Fair value movements on available-for-sale assets – – – 7 – 7
Tax recognised in other comprehensive income – – 159 – (20) 139
Net issue of treasury shares 4 ––––4
At 1 April 2010 (1,105) 998 147 12 705 757
Exchange differences – – – – (140) (140)
Net fair value loss on cash flow hedges – – (347) – – (347)
Recognised in income and expense – – 333 – – 333
Fair value movements on available-for-sale assets – – – 15 – 15
Tax recognised in other comprehensive income – – (5) – 18 13
Net issue of treasury shares 27 ––––27
At 31 March 2011 (1,078) 998 128 27 583 658
aThe treasury shares reserve is used to hold BT Group plc shares purchased by the group. During 2011 the company purchased nil (2010: nil, 2009: 142,608,225) of its own shares of 5p each, representing
nil% (2010: nil%, 2009: 2%) of the called-up share capital, for consideration (including transaction costs) of £nil (2010: £nil, 2009: £189m). In addition, 12,335,580 shares (2010: 8,320,766 , 2009:
90,626,518) were issued from treasury to satisfy obligations under employee share schemes and executive share awards at a cost of £27m (2010: £4m, 2009: £126m), and nil treasury shares (2010 nil,
2009: 250,000,000) were cancelled at a cost of £nil (2010: £nil, 2009: £797m). At 31 March 2011, 388,570,539 shares (2010: 400,906,119, 2009: 409,226,885) with an aggregate nominal value of
£19m (2010: £20m, 2009: £20m) were held as treasury shares at cost.
bThe merger reserve arose on the group reorganisation that occurred in November 2001 and represented the difference between the nominal value of shares in the new parent company, BT Group plc, and the
aggregate of the share capital, share premium account and capital redemption reserve of the prior parent company, British Telecommunications plc.
cThe cash flow reserve is used to record the effective portion of the cumulative net change in the fair value of cash flow hedging instruments related to hedged transactions that have not yet occurred.
dThe available-for-sale reserve is used to record the cumulative fair value gains and losses on available-for-sale financial assets. The cumulative gains and losses are recycled to the income statement on
disposal of the assets.
eThe translation reserve is used to record cumulative translation differences on the assets and liabilities of foreign operations. The cumulative translation differences are recycled to the income statement on
disposal of the foreign operation.
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