BP 2005 Annual Report Download - page 98

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96 Making energy more
Notes on financial statements continued
44 Capital and reserves continued
The profit and loss account reserve includes the following amounts, the distribution of which is limited by statutory or other restrictions:
$ million
2005 2004 2003
Parent company 27,391 25,026 24,107
Subsidiaries 2,463 2,927 2,115
Jointly controlled entities and associates 492 441 566
30,346 28,394 26,788
Share capital The balance on the share capital account represents the aggregate nominal value of all ordinary and preference shares in issue.
Share premium account The balance on the share premium account represents the amounts received in excess of the nominal value of the
ordinary and preference shares.
Capital redemption reserve The balance on the capital redemption reserve represents the aggregate nominal value of all the ordinary shares
repurchased and cancelled.
Merger reserve The balance on the merger reserve represents the fair value of the consideration given in excess of the nominal value of the
ordinary shares issued in an acquisition made by the issue of shares.
Other reserve The balance on the other reserve represents the fair value of the consideration given in excess of the nominal value of the ordinary
shares to be issued in the ARCO acquisition on the exercise of ARCO share options.
Own shares Own shares represent BP shares held in Employee Share Ownership Plans (ESOPs) to meet the future requirements of the employee
share-based payment arrangements.
Treasury shares Treasury shares represent BP shares repurchased and available for issue.
Foreign currency translation reserve The foreign currency translation reserve is used to record exchange differences arising from the translations of
the financial statements of foreign operations. It is also used to record the effect of hedging net investments in foreign operations.
Available-for-sale investments This reserve records the changes in fair value on available-for-sale investments. On disposal, the cumulative changes
in fair value are recycled to the income statement.
Cash flow hedges This reserve records the portion of the gain or loss on a hedging instrument in a cash flow hedge that is determined to be an
effective hedge. On maturity, the cumulative gain or loss is recycled to the income statement or balance sheet as appropriate.
Profit and loss account The balance held on this reserve is the accumulated retained profits of the group.
45 Share-based payments
EFFECT OF SHARE-BASED PAYMENT TRANSACTIONS ON THE GROUP’S RESULT AND FINANCIAL POSITION $ million
2005 2004 2003
Total expense recognized for equity-settled share-based payment transactions 348 289 268
Total expense recognized for cash-settled share-based payment transactions 20 36 25
Total expense recognized for share-based payment transactions 368 325 293
Closing balance of liability for cash-settled share-based payment transactions 48 59 51
Total intrinsic value for vested cash-settled share-based payments 41 53 50
For ease of presentation, option and share holdings detailed in the tables within this note are stated as UK ordinary share equivalents in US dollars.
US employees are granted American Depositary Shares (ADSs) or options over the company’s ADSs (one ADS is equivalent to six ordinary shares).
The share-based payment plans that existed during the year are detailed below. All plans are ongoing unless otherwise stated.