Barclays 2003 Annual Report Download - page 126

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Consolidated Accounts Barclays PLC
Consolidated Statement of Changes in Reserves
Consolidated statement of changes in reserves
For the year ended 31st December 2003
2003 2002 2001
restated restated
£m £m £m
Share premium account
At beginning of year 5,277 5,149 4,950
Premium arising on shares issued 140 128 199
At end of year 5,417 5,277 5,149
Capital redemption reserve
At beginning of year 262 232 227
Repurchase of ordinary shares 12 30 5
At end of year 274 262 232
Other capital reserve
At beginning of year 617 617 469
Repurchase of preference shares ––148
At end of year 617 617 617
Revaluation reserve
At beginning of year 24 30 35
Exchange rate translation differences 2– (1)
Released on transaction with third parties (2) (6) –
Other items –– (4)
At end of year 24 24 30
Profit and loss account
At beginning of year 7,380 6,789 5,840
Prior year adjustment (4) ––
At beginning of year as restated 7,376 6,789 5,840
Profit retained 1,404 1,024 1,336
Exchange rate translation differences (31) (61) 4
Repurchase of ordinary shares (192) (516) (96)
Transfer to capital redemption reserve (12) (30) (5)
Goodwill written back on disposals –10 –
Shares issued to employee trusts (see below) (36) (48) (107)
Transfer to other capital reserve –– (148)
(Loss)/gain arising from transaction with third parties (4) 212 –
Increase in Treasury shares (8) (4) –
Other items 2– (35)
At end of year 8,499 7,376 6,789
Total reserves 14,831 13,556 12,817
The Group operates in a number of countries subject to regulations under which a local subsidiary undertaking has to maintain a minimum level
of capital. The current policy of the Group is that local capital requirements are met, as far as possible, by the retention of profit. Certain countries
operate exchange control regulations which limit the amount of dividends that can be remitted to non-resident shareholders. It is not possible to
determine the amount of profit retained and other reserves that is restricted by these regulations, but the net profit retained of overseas subsidiaries,
associated undertakings and joint ventures at 31st December 2003 totalled £925m (2002: £1,038m, 2001: £1,190m). If such overseas reserves were
to be remitted, other tax liabilities, which have not been provided for in the accounts, might arise.
Goodwill amounting to £205m (2002: £205m, 2001: £215m) has been charged directly against reserves in prior years in respect of acquisitions.
This amount is net of any goodwill attributable to subsidiary undertakings disposed of prior to the balance sheet date.
In 1998, the Group established a Qualifying Employee Share Ownership Trust (QUEST) for the purposes of delivering shares on the exercise of options
under the SAYE. During 2003 the Group received from the trustees of the QUEST £88m (2002: £122m, 2001: £195m) on the issue of shares in respect of
the exercise of options awarded under SAYE. Of the amount received from the trustees, employees paid £53m (2002: £76m, 2001: £90m) and the balance
of £35m (2002: £46m, 2001: £105m) comprised utilisation of contribution to the QUEST from Group Companies together with net interest earned
thereon. During 2003 the Barclays Group (PSP & ESOS) Employee Share Ownership Trust (ESOT) ceased to be used to facilitate the provision of Barclays
PLC shares to participants exercising rollover options under the Woolwich plc 1998 Executive Share Option Plan (WESOP). During 2003, the Group
received from the trustees of this trust £nil (2002: £8m and 2001: £6m) on the issue of shares in respect of the exercise of options awarded under WESOP.
Of the amount received from the trustees, employees paid £nil (2002: £6m and 2001: £4m) and the balance of £nil (2002: £2m and 2001: £2m)
comprised contribution to the trust from Group Companies. WESOP exercises during 2003 were satisfied by issuing shares directly to participants.
Accumulated exchange rate translation differences included in reserves are £568m debit (2002: £539m, 2001: £478m both debit).