BT 2012 Annual Report Download - page 160

Download and view the complete annual report

Please find page 160 of the 2012 BT annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 205

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205

Financial statements
Notes to the consolidated financial statements
27. Other reserves
Other comprehensive income
Available-
Treasury Merger Cash flow for-sale Translation Total other
sharesareservebreservecreservedreserveereserves
£m £m £m £m £m £m
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 1 April 2011 (1,078) 998 128 27 583 658
Exchange differences ––––(106) (106)
Recycled foreign exchange on disposal of subsidiary ––––22
Net fair value loss on cash flow hedges – – (56) – – (56)
Recognised in income and expense – – 179 – – 179
Fair value movements on available-for-sale assets – – – (3) – (3)
Tax recognised in other comprehensive income – – (22) – (1) (23)
Net issue of treasury shares 60––––60
At 31 March 2012 (1,018) 998 229 24 478 711
aThe treasury shares reserve is used to hold BT Group plc shares purchased by the group. In 2012, 21,981,253 shares (2011: 12,335,580, 2010: 8,320,766) were issued from treasury to satisfy
obligations under employee share schemes and executive share awards at a cost of £60m (2011: £27m, 2010: £4m). At 31 March 2012, 366,589,286 shares (2011: 388,570,539, 2010:
400,906,119) with an aggregate nominal value of £18m (2011: £19m, 2010: £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.
28. Related party transactions
Key management personnel comprise executive and non-executive directors and members of the
Operating Committee
. Key management
personnel compensation is shown in the table below:
2012 2011 2010
Year ended 31 March £m £m £m
Salaries and short-term benefits 11.6 11.4 10.3
Termination benefits – – 0.1
Post employment benefits 1.0 1.4 1.8
Share-based payments 7.8 5.3 2.6
20.4 18.1 14.8
More detailed information concerning directors’ remuneration, shareholdings, pension entitlements, share options and other long-term incentive
plans is shown in the audited part of the Report on Directors’ Remuneration, which forms part of the consolidated financial statements.
Amounts paid to the group’s retirement benefit plans are set out in note 20. There were a number of transactions during the year between the
company and its subsidiary undertakings, which are eliminated on consolidation and therefore not disclosed.
Overview
BusinessStrategy
Performance
Governance
Financial statements
Additional information Overview
BusinessStrategy
Performance
Governance
Financial statements
Additional information