Consolidated statement of recognised income and expense
|For the year ended 31 December 2008
|Profit for the year||513.9||515.1||482.6|
|Exchange adjustments on foreign currency net investments||(i)||1,379.2||68.7||(352.3)|
|(Loss)/gain on revaluation of available for sale investments||(51.3)||108.1||9.5|
|Actuarial (loss)/gain on defined benefit pension schemes||(ii)||(82.2)||30.0||11.3|
|Deferred tax credit/(charge) on defined benefit pension schemes||0.7||(9.9)||5.3|
|Net income/(expense) recognised directly in equity||1,246.4||196.9||(326.2)|
|Total recognised income and expense relating to the year||1,760.3||712.0||156.4|
|Equity holders of the parent||1,685.5||662.8||109.6|
- The accompanying notes form an integral part of this statement of recognised income and expense.
- Exchange adjustments on foreign currency net investments of £1,379.2 million in the year ended 31 December 2008 (2007: £68.7 million, 2006: £(352.3) million) largely arises from the retranslation at year-end exchange rates of the Group’s opening, non-sterling assets and liabilities. During 2008 the US dollar and the euro strengthened against sterling by over 26% and 23% respectively. This had a significant impact on the Group’s balance sheet and the amount taken into equity in respect of the retranslation of net assets.
- The actuarial loss on defined benefit pension schemes of £82.2 million for the year ended 31 December 2008 (2007: gain of £30.0 million, 2006: gain of £11.3 million) was largely due to a decrease in pension scheme asset values in 2008 and reflects the deterioration in the global economic environment during the year. Approximately £58.0 million or 70% of this actuarial loss arose on the Group’s pension plans in North America.