Coca-Cola Amatil 2007 Annual Report
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CCA Group CCA Entity
Note 24. Reserves continued
b) Movements continued
Cash flow hedging reserve
Balance at the beginning of the year
20.4
Revaluation of cash flow hedges to fair value
16.0
Transfer to income statements
(33.0)
Transfer to initial carrying amount of hedged items
1.9
Deferred tax adjustment 24c)
2.2
Refer
2007
$M
7.5
26.1
(0.6)
(0.5)
(7.5)
25.0
–
4.2
4.2
0.6
(7.5)
(6.9)
2006
Note
$M
2007
$M
15.8
35.0
1.1
–
(10.8)
41.1
–
4.2
4.2
0.6
(10.8)
(10.2)
$M
(2.2)
25.2
0.5
–
(7.7)
Balance at the end of the financial year
7.5
The cash flow hedging reserve is used to record adjustments to revalue
cash flow hedges to fair or market value, where the derivative financial
instruments qualify for hedge accounting. Upon realisation of the
underlying hedged transactions in future financial years, these revaluation
adjustments are reversed from the cash flow hedging reserve and taken to
the income statements.
General reserve
Balance at the beginning of the year
–
–
Transfer from equity compensation reserve
–
–
Balance at the end of the financial year
–
–
The general reserve is used to record share based remuneration amounts
with respect to the Long Term Incentive Share Plan where the vesting
requirements for completed plans for awards conditional upon a market
condition have not been met.
c) Reserve movements attributable to deferred taxes
Equity compensation reserve 24b)
(0.2)
(0.2)
Cash flow hedging reserve 24b)
2.2
(7.7)
Total 20b)
2.0
(7.9)
Note 25. Employee Ownership Plans
The Company has seven share and option plans available for employees and Directors
of the Group: the Employees Share Plan; the Executive Option Plan;
the Long Term Incentive Share Plan; the Executive Retention Share Plan; the
Non-Executive Directors’ Share Plan; the Non-Executive Directors’ Retirement
Share Trust and the Executive Salary Sacrifice Share Plan. Fully paid ordinary
shares issued under these plans rank equally with all other existing fully
paid
ordinary shares, in respect of voting and dividends rights and future bonus
and rights issues.
Employees Share Plan
The Employees Share Plan provides employees with an opportunity to contribute
up to 3% of their salary to acquire shares in the Company. The Plan is
administered by a trustee which acquires (and holds in trust) shares for the
benefit of participants. These shares are acquired through issues of shares
to
the trustee (the issue price is the weighted average price of a specified five
day period prior to issue) or are purchased on market at the prevailing market
price; shares that have been forfeited under the terms of the Plan are also
utilised. For every share acquired with amounts contributed by each participant,
a matching share is acquired by the trustee. These matching shares, which under
normal circumstances vest with the employee after a period of two years
from their date of issue (acquisition or utilisation), are acquired with contributions
made by the employing entities. Vesting of matching shares with
employees does not involve any performance hurdles.
Members of the Plan receive dividends for all shares held on their behalf
by the trustee.
As at the end of the financial year, the total number of employees eligible
to participate in the Plan was 15,666 (2006: 18,060).
All shares were purchased on market during the financial year. No shares were
issued under the Plan during the financial year.
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