Barclays 2012 Annual Report Download - page 292

33 Reserves
Currency translation reserve
The currency translation reserve represents the cumulative gains and losses on the retranslation of the Group’s net investment in foreign
operations, net of the effects of hedging. Currency translation movements in 2012 of £1,578m (2011: £1,607m), including £259m (2011: £598m)
associated with non-controlling interests, are largely due to the depreciation of the US Dollar and Rand against Sterling.
The impact of the currency translation reserve recognised in the income statement during the year was £24m (2011: nil).
Available for sale reserve
The available for sale reserve represents the unrealised change in the fair value of available for sale investments since initial recognition.
The available for sale reserve increased by £546m (2011: £1,374m), largely driven by £1,193m gains from changes in fair value (excluding
non-controlling interests), £474m losses transferred to the income statement due to fair value hedging, offset by £703m gains transferred to the
income statement, including the disposal of BlackRock, Inc. and a £352m decrease due to the impact of current and deferred tax movements.
Cash flow hedging reserve
The cash flow hedging reserve represents the cumulative gains and losses on effective cash flow hedging instruments that will be recycled to the
income statement when the hedged transactions affect profit or loss.
The increase in the cash flow hedging reserve of £662m (2011: £1,263m increase) principally reflected £1,535m increases in the fair value of
interest rate swaps held for hedging purposes partially offset by £695m gains transferred to net profit.
Other reserves and treasury shares
Other reserves represent the excess of the repurchase price over the nominal of redeemed ordinary and preference shares issues by the Group.
Treasury shares are deducted from shareholders’ equity within other reserves and treasury shares. A transfer is made to retained earnings in line
with the vesting of treasury shares held for the purposes of share based payments.
The treasury shares primarily relate to Barclays PLC shares held in relation to the Group’s various share schemes. These schemes are described in
Note 36.
During the period £979m (2011: £165m) net purchases of treasury shares were made principally reflecting the increase in shares held for the
purposes of employee share schemes, and £946m (2011: £499m) was transferred to retained earnings reflecting the vesting of deferred share
based payments.
barclays.com/annualreport290 I Barclays PLC Annual Report 2012
Notes to the financial statements
For the year ended 31 December 2012 continued