Unilever 2015 Annual Report Download - page 122

15 APITAL AND FUNDIN
ORDINARY SHARES
Ordnary shares are classfed as equty Incremental costs drectly attrbutable to the ssue of ordnary shares are recognsed
as a deducton from equty, net of any tax effects
INTERNAL HOLDINS
The ordnary shares numbered 1 to 2,400 (nclusve) n NV (‘Specal Shares’) and deferred stock of PL are held as to one half
of each class by NV Elma – a subsdary of NV – and one half by Unted Holdngs Lmted – a subsdary of PL Ths captal s
elmnated on consoldaton
SHAREBASED OMPENSATION
The roup operates a number of share-based compensaton plans nvolvng optons and awards of ordnary shares of NV and PL
Full detals of these plans are gven n note 4 on pages 104 and 105
OTHER RESERVES
Other reserves nclude the far value reserve, the foregn currency translaton reserve, the captal redempton reserve and
treasurystock
SHARES HELD BY EMPLOYEE SHARE TRUSTS AND ROUP OMPANIES
ertan PL trusts, NV and group companes purchase and hold NV and PL shares to satsfy performance shares granted, share
optons granted and other share awards (see note 4) The assets and labltes of these trusts and shares held by group companes
are ncluded n the consoldated fnancal statements The book value of shares held s deducted from other reserves, and trusts’
borrowngs are ncluded n the roup’s labltes The costs of the trusts are ncluded n the results of the roup These shares are
excluded from the calculaton of earnngs per share
FINANIAL LIABILITIES
Fnancal labltes are ntally recognsed at far value, less any drectly related transacton costs ertan bonds are desgnated
as beng part of a far value hedge relatonshp In these cases, the bonds are carred at amortsed cost, adusted for the far value
of the rsk beng hedged, wth changes n value shown n proft and loss Other fnancal labltes, excludng dervatves, are
subsequently carred at amortsed cost
DERIVATIVE FINANIAL INSTRUMENTS
The roup’s use of, and accountng for, dervatve nstruments s explaned n note 16 on page 120 and on pages 124 to 125
The roup’s Treasury actvtes are desgned to
• mantan a compettve balance sheet n lne wth A+/A1 ratng (see below)
• secure fundng at lowest costs for the roup’s operatons, M&A actvty and external dvdend payments (see below)
• protect the roup’s fnancal results and poston from fnancal rsks (see note 16)
• mantan market rsks wthn acceptable parameters, whle optmsng returns (see note 16) and
• protect the roup’s fnancal nvestments, whle maxmsng returns (see note 17)
The Treasury department provdes central depost takng, fundng and foregn exchange management servces for the roup’s
operatons The department s governed by standards and processes whch are approved by Unlever Leadershp Executve (ULE)
Inaddton to gudelnes and exposure lmts, a system of authortes and extensve ndependent reportng covers all maor areas
of actvty Performance s montored closely by senor management Revews are undertaken perodcally by corporate audt
Key nstruments used by the department are
• short-term and long-term borrowngs
• cash and cash equvalents and
• plan vanlla dervatves, ncludng nterest rate swaps and FX contracts
The Treasury department mantans a lst of approved fnancal nstruments The use of any new nstrument must be approved
by the hef Fnancal Offcer The use of leveraged nstruments s not permtted
115Unilever Annual Report and Accounts 2015 Financial statements