Consolidated statement of recognised income and expense

For the year ended 31 December 2008
 

Notes
2008
£m
2007
£m
2006
£m
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
Attributable to:
Equity holders of the parent   1,685.5 662.8 109.6
Minority interests   74.8 49.2 46.8
    1,760.3 712.0 156.4

Notes

The accompanying notes form an integral part of this statement of recognised income and expense.
(i)
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.
(ii)
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.