Notes to the consolidated financial statements

43 Other reserves

	2008 £m	2007 £m
Other reserves comprise:
Merger reserve	343	343
Revaluation reserve in respect of available-for-sale financial assets	(2,982)	(399)
Cash flow hedging reserve	(15)	(3)
Foreign currency translation reserve	178	(1)
	(2,476)	(60)

Movements in other reserves were as follows:

	2008 £m	2007 £m
Merger reserve
At 1 January and 31 December	343	343
	2008 £m	2007 £m
Revaluation reserve in respect of available-for-sale financial assets
At 1 January	(399)	–
Exchange and other adjustments	(541)	(1)
Change in fair value of available-for-sale financial assets	(2,721)	(483)
Change in fair value attributable to minority interests	2	–
Deferred tax	566	1
Current tax	94	46
	(2,059)	(436)
Income statement transfers:
Disposals (note 9 )	(19)	(5)
Impairment	130	70
Current tax	(28)	(21)
	102	49
Other transfers	(91)	–
Current tax	25	–
	(66)	–
Disposal of businesses	–	(6)
At 31 December	(2,982)	(399)
	2008 £m	2007 £m
Cash flow hedging reserve
At 1 January	(3)	12
Change in fair value of hedging derivatives	(33)	(20)
Deferred tax	9	6
	(24)	(14)
Income statement transfer (note 5 )	16	(1)
Deferred tax	(4)	–
	12	(1)
At 31 December	(15)	(3)
	2008 £m	2007 £m
Foreign currency translation reserve
At 1 January	(1)	(19)
Currency translation differences arising in the year	2,533	257
Foreign currency losses on net investment hedges	(3,310)	(342)
Amounts transferred to income statement in respect of hedge ineffectiveness	14	–
Current tax	584	103
Deferred tax	358	–
	(2,354)	(239)
At 31 December	178	(1)

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