ANNUAL REPORT AND FINANCIAL STATEMENTS 2012 | 99


31. Reserves continued


Other reserves: • Foreign currency translation reserve The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign operations and non-Sterling denominated intangible assets.


• Fair value reserve This reserve records fair value changes on available for sale investments until the investments are derecognised.


• Acquisition reserve The acquisition reserve was created on the initial recognition of the F&C REIT NCI put option liabilities.


Retained earnings Movements in retained earnings comprises:


• net profits and losses recognised through the Income Statement; • dividend distributions to equity holders; • actuarial gains and losses recognised on pension obligations; • deferred tax on actuarial gains and losses;


• transactions relating to equity-settled share-based payments, and deferred tax movements on share-based payments reflected through equity;


• transactions with NCI in respect of their share of the partnerships; • the purchase and sale of own shares; • allotment of share capital for non-cash consideration; and • transfers from merger reserve.


Non-controlling interests (NCI) This reserve represents the share of the Group’s net assets which are not attributable to equity holders of the parent, including the NCI share of intangible assets, and subsequent amortisation thereof, arising from business combinations.


32. Notes to the statement of cash flows (a) Analysis of movements in statement of cash flows


Notes


Adjustments for non-cash items: Depreciation of property, plant and equipment Amortisation of intangible assets


Loss on disposal of property, plant and equipment


Non-cash movement in respect of adjustment to consideration for NCI in F&C Partners LLP Equity-settled share-based payment expenses


Changes in working capital and provisions: (Increase)/decrease in trade and other receivables Decrease in trade and other payables Decrease in employee benefit liabilities


Decrease/(increase) in stock of units and shares (Decrease)/increase in liabilities to members of LLPs Decrease in investment contract liabilities Decrease in reinsurance assets


Decrease in insurance contract liabilities Decrease in deferred acquisition costs Decrease in deferred income


Pension charge to operating profit less defined benefit pension contributions paid Decrease in provisions


Decrease in unit-linked financial investments 17(a)(i)(1)


17(a)(ii) 28


15 26


25


12 13


2012 £m


3.0


43.1 0.9 1.0


13.4 61.4


(2.5)


(16.5) (5.0) 0.6


(0.7)


(335.9) 2.0


(2.0) 1.8


(2.0) (5.5) (2.5)


313.6 (54.6)


(b) Property, plant and equipment During the period the Group acquired property, plant and equipment with an aggregate cost of £3.7m (2011: £2.7m). Cash payments of £3.6m (2011: £3.0m) were made to purchase property, plant and equipment during the year, as detailed in note 12.


(c) Cash and cash equivalents Note 20 provides details of cash and cash equivalent balances, a description of cash and cash equivalents and restrictions on use of cash, and note 21 gives details of loans and borrowing facilities.


2011 £m


3.2


46.4 0.3 –


17.3 67.2


78.6


(56.5) (1.2) (0.8) 0.3


(86.4) – –


1.7


(1.5) (3.6) (3.3)


91.0 18.3


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