Notes to the accounts

Notes to the accounts list

39 Reserves

	The Group Revenue 2005 £m	The Group Share premium 2005 £m	The Group Capital redemption 2005 £m	The Group Capital 2005 £m
Opening balances	391	359	1	2,337
Prior year adjustment	1	–	–	(111)
Opening balances as restated	392	359	1	2,226
Retained revenue for the year	46
Realised profits on disposal of investments				260
Change in value of retained investments				270
Carried interest and investment performance plans				(66)
Fees receivable allocated to capital reserve				18
Interest payable allocated to capital reserve				(25)
Administrative expenses allocated to capital reserve				(94)
Actuarial gains/(losses) on pension plan				(1)
Tax on capital items				19
Increase in respect of shares issued		5
Currency translation adjustment	(1)			(2)
Movement for the year	45	5	–	379
31 March 2005	437	364	1	2,605
The balance on the capital reserve represents:
Realised profits				2,688
Unrealised appreciation				(83)
				2,605

Reserves

	The Company Revenue 2005 £m	The Company Share premium 2005 £m	The Company Capital redemption 2005 £m	The Company Capital 2005 £m
Opening balances	463	359	1	2,085
Retained revenue for the year	12
Realised profits on disposal of investments				291
Change in value of retained investments				223
Carried interest and investment performance plans				(66)
Interest payable allocated to capital reserve				(9)
Administrative expenses allocated to capital reserve				(42)
Capital contribution to subsidiary undertaking				(60)
Increase in respect of shares issued		5
Currency translation adjustment	(6)			2
Movement for the year	6	5	–	339
31 March 2005	469	364	1	2,424
The balance on the capital reserve represents:
Realised profits				2,547
Unrealised appreciation				(123)
				2,424

	The Company £m	Subsidiary undertakings £m	Joint ventures £m	Total £m
Retained profits
31 March 2005
Revenue and realised capital profits	3,016	122	(13)	3,125
31 March 2004 (as restated)*
Revenue and realised capital profits	2,776	81	(9)	2,848
* As restated to reflect the adoption of FRS 17 – Retirement Benefits and UITF 38 – Accounting for ESOP Trusts. See Basis of preparation.

The Company’s Articles of Association prohibit the distribution of capital profits by way of dividend. As a result, the balance of its capital reserve, both realised and unrealised, is not distributable.