directors report and accounts 2006 - Group statement of changes in total equity for the year ended 31 December
Annual Report
and Accounts 2006
| Notes | 2006 £m | 2005 restated £m | |
|---|---|---|---|
| Differences on exchange | (685) | 425 | |
| Cash flow hedges | |||
| - net fair value gains | 13 | 17 | |
| - reclassified and reported in net profit | (15) | 38 | |
| - reclassified as basis adjustments | 3 | ||
| Available-for-sale investments | |||
| - net fair value losses | (2) | (1) | |
| - reclassified and reported in net profit | 1 | ||
| Net investment hedges | |||
| - net fair value gains/(losses) | 117 | (52) | |
| Tax on items recognised directly in equity | 6c | (12) | (41) |
| Net (losses)/gains recognised directly in equity | (584) | 390 | |
| Profit for the year (Group income statement) | 2,048 | 1,894 | |
| Total recognised income for the year | 1,464 | 2,284 | |
| - shareholders' equity | 1,334 | 2,128 | |
| - minority interests | 130 | 156 | |
| Employee share options | |||
| - value of employee services | 27 | 41 | 42 |
| - proceeds from shares issued | 28 | 30 | |
| Dividends and other appropriations | |||
| - ordinary shares | 8 | (1,008) | (910) |
| - to minority interests | (137) | (112) | |
| Purchase of own shares | |||
| - held in employee share ownership trusts | (77) | (48) | |
| - share buy-back programme | (500) | (501) | |
| Acquisition of minority interests | (13) | ||
| Other movements | 13 | 17 | |
| (189) | 802 | ||
| Balance 1 January | 20 | 6,877 | 6,117 |
| Change in accounting policy | 24 | (42) | |
| 6,877 | 6,075 | ||
| Balance 31 December | 20 | 6,688 | 6,877 |
The decrease in total equity of £189 million (2005: £802 million increase) comprised £169 million decrease (2005: £754 million increase) in respect of shareholders' funds and £20 million decrease (2005: £48 million increase) in respect of minority interests.
The £42 million charge in the prior year for the change in accounting policy (see note 24) comprised £44 million for the retained earnings and £26 million for hedging reserves less £16 million for available-for-sale reserves, £1 million of which is in respect of minority interests, and £12 million for translation reserves.
The change to the translation reserve and to retained earnings (see note 20) due to the amendment to IAS21 as detailed in note 4 was £3 million at 31 December 2005. Differences on exchange for 2005 have been restated by £4 million with a corresponding change in net finance costs and consequently profit for the year as shown above.