Experian 2010 Annual Report Download - page 145

143
Introduction 2 – 11
Business review 12 – 51
Governance 52 – 84
Financial statements 85 – 160
33. Share capital and share premium
Share capital comprises the nominal value of the Company’s issued share capital. Further details relating to the share capital of
Experian plc at the balance sheet dates, together with details of ordinary shares issued during the year and since 31 March 2010,
are contained in note K to the parent company nancial statements.
The share premium account comprises the amount received in excess of the nominal value of the shares issued (i) by way of
the share offer in October 2006, net of expenses, and (ii) by way of the subsequent issue of ordinary shares in connection with
employee share option plans. The balance on this account is not available for distribution.
The Group adopted a presentation currency of the US dollar in its previous sets of nancial statements. As described in note B
to its nancial statements which are prepared under UK GAAP, the Company determined that its functional currency changed
on 1 April 2009 to the US dollar from sterling. A difference between the amounts now shown in the Group and parent company
nancial statements in respect of share capital and the share premium account arises due to the translation of the sterling
amounts into US dollars at the different exchange rates on the different translation dates. The differences for share capital
and the share premium account, with the higher numbers being reported in the Group nancial statements, are US$23m and
US$329m respectively at both 31 March 2009 and 31 March 2010.
34. Retained earnings and other reserves
Retained earnings comprise net prots retained in the Group after the payment of equity dividends. The composition of, and
movements in, other reserves are set out below. There are no signicant statutory, contractual or exchange control restrictions
on distributions by Group undertakings.
Year ended 31 March 2010 Own
shares
US$m
Merger
reserve
US$m
Hedging
reserve
US$m
Transl ation
reserve
US$m
To t a l
other
reserves
US$m
At 1 April 2009 (112) (15,682) 11 (234) (16,017)
Purchase of own shares by employee trusts (164) - - - (164)
Exercise of share options 151 - - - 151
Currency translation gains recognised directly in other
comprehensive income - - - 170 170
At 31 March 2010 (125) (15,682) 11 (64) (15,860)
Year ended 31 March 2009 Own
shares
US$m
Merger
reserve
US$m
Hedging
reserve
US$m
Transl ation
reserve
US$m
Tot a l
other
reserves
US$m
At 1 April 2008 (132) (15,682) 11 150 (15,653)
Exercise of share options 20 - - - 20
Currency translation losses recognised directly in other
comprehensive income - - - (384) (384)
At 31 March 2009 (112) (15,682) 11 (234) (16,017)
At 31 March 2010, the balance on the own shares reserve represents the cost of shares in the Company held by the Experian
plc Employee Share Trust and the Experian UK Approved All-Employee Share Plan to satisfy certain of the Group’s obligations
under its share incentive plans. During the year ended 31 March 2010, 18m (2009: nil) ordinary shares were purchased by the trusts
at a cost of US$164m (2009: US$nil).
The merger reserve arose on the demerger in October 2006 and represents the difference between the share capital and share
premium of GUS plc and the nominal value of the share capital of the Company before the global offer and subsequent share
issues.
Movements on the hedging reserve and the position at the balance sheet date reect hedging transactions which are not
charged or credited to the Group income statement, net of related taxation.
Movements on the translation reserve and the position at the balance sheet date reect foreign currency translations since 1
April 2004 which are not charged or credited to the Group income statement, net of related taxation.