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Note 35: Other reserves and minority interests

a  Group

  Group
£ million Retained earnings Unrealised gains and losses Currency translation Total Minority interests*
Balance at April 1, 2007 903 99 (2) 1,000 200
Profit for the year attributable to shareholders 680     680  
Exchange differences and other movements     24 24  
Fair value of cash flow hedges transferred to passenger revenue   (5)   (5)  
Fair value of cash flow hedges transferred to fuel and oil costs   (136)   (136)  
Fair value of cash flow hedges transferred to currency differences   15   15  
Net change in fair value of cash flow hedges   245   245  
Cost of share-based payment 3     3  
Tax effect of share-based payment (7)     (7)  
Deferred tax – rate change adjustment 6     6  
Share of other movements in reserves of associates (2)     (2)  
Net fair value adjustment on available-for-sale financial assets   (5)   (5)  
Total income and expense for the year 680 114 24 818  
Balance at March 31, 2008: 1,583 213 22 1,818 200
Adoption of IFRIC 13 (206)     (206)  
Adoption of IFRIC 14 235     235  
At March 31, 2008 (Restated) 1,612 213 22 1,847 200
Loss for the year attributable to shareholders (375)     (375)  
Exchange differences and other movements     38 38  
Fair value of cash flow hedges transferred to passenger revenue   13   13  
Fair value of cash flow hedges transferred to fuel and oil costs   (78)   (78)  
Fair value of cash flow hedges transferred to currency differences   (46)   (46)  
Net change in fair value of cash flow hedges   (877)   (877)  
Exercise of share options (2)     (2)  
Cost of share-based payment 1     1  
Share of other movements in reserves of associates (26)     (26)  
Held-to-maturity investments marked-to-market   (5)   (5)  
Available-for-sale financial assets – gains recycled to the income statement   (4)   (4)  
Net dividends (56)     (56)  
Total income and expense for the year (458) (997) 38 (1,417)  
At March 31, 2009 1,154 (784) 60 430 200

* Minority Interests comprise €300 million of 6.75 per cent fixed coupon euro perpetual preferred securities issued by British Airways Finance (Jersey) L.P. in which the general partner is British Airways Holdings Limited, a wholly-owned subsidiary of the Company. The holders of these securities have no rights against Group undertakings other than the issuing entity and, to the extent prescribed by the subordinated guarantee, the Company. The effect of the securities on the Group as a whole, taking into account the subordinate guarantee and other surrounding arrangements, is that the obligations to transfer economic benefits in connection with the securities do not go beyond those that would normally attach to preference shares issued by a UK company.

b  Company

  Company
£ million Retained earnings Unrealised gains and losses Total
Balance at April 1, 2007 591 92 683
Profit for the year attributable to shareholders 540   540
Cost of share-based payment 3   3
Tax effect of share-based payment (7)   (7)
Deferred tax – rate change adjustment 6   6
Fair value of cash flow hedges transferred to passenger revenue   (5) (5)
Fair value of cash flow hedges transferred to fuel and oil costs   (136) (136)
Fair value of cash flow hedges transferred to currency differences   15 15
Net change in fair value of cash flow hedges   245 245
Total income and expense for the year 542 119 661
Balance at March 31, 2008 1,133 211 1,344
Adoption of IFRIC 13 (135)   (135)
Adoption of IFRIC 14 235   235
At April 1, 2008 (Restated) 1,233 211 1,444
Loss for the year attributable to shareholders (389)   (389)
Cost of share-based payment (2)   (2)
Deferred tax – rate change adjustment 1   1
Fair value of cash flow hedges transferred to passenger revenue   13 13
Fair value of cash flow hedges transferred to fuel and oil costs   (78) (78)
Fair value of cash flow hedges transferred to currency differences   (46) (46)
Net change in fair value of cash flow hedges   (877) (877)
Net dividends (56)   (56)
Total income and expense for the year (446) (988) (1,434)
At March 31, 2009 787 (777) 10

The unrealised gains and losses reserve records fair value changes on available-for-sale investments and the portion of the gain or loss on a hedging instrument in a cash flow hedge that is determined to be an effective hedge.

The currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries and associates.

Total shareholders’ equity also includes the balance classified as share capital that includes the total net proceeds (both nominal value and share premium) on issue of the Company’s equity share capital, comprising 25 pence ordinary shares. Investment in own shares consists of shares held by British Airways Employee Benefits Trust (Jersey) Limited, a wholly-owned subsidiary, for the purposes of the Employee Share Ownership plans including the Long Term Incentive Plan (LTIP). At March 31, 2009, the Group and Company held 2,134,461 shares for the LTIP and other employee share schemes (2008: 2,087,147 shares). The purchase of shares was financed by the Company granting a loan to British Airways Employee Benefits Trust (Jersey) Limited.

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