Deutsche Post Annual Report 2008

40 Other reserves

€m

Capital reserve

2,119

2,142

Revaluation reserve in accordance with IAS 39

–251

–254

Hedging reserve in accordance with IAS 39

–96

–60

Revaluation reserve in accordance with IFRS 3

Currency translation reserve

–897

–1,397

Other reserves

875

439

40.1 Capital reserve


€m
	2007	2008
Capital reserve as at 1 January	2,037	2,119
Additions	82	23
of which exercise of stock option plans	68	19
of which issuance of stock option plans	14	4
Capital reserve as at 31 December	2,119	2,142

The measurement of the 2003 Stock Option Plan resulted in staff costs for the stock options in the amount of €4 million in financial year 2008 (previous year: €14 million); this amount was charged to capital reserves. Further details of the stock option plans can be found in Note 55.

40.2 Revaluation reserve in accordance with IAS 39

The revaluation reserve contains gains and losses from changes in the fair values of available-for-sale financial instruments that have been taken directly to equity. This reserve is reversed to income either when the assets are sold or otherwise disposed of, or if the fair value of the assets falls permanently below their cost.


€m
	2007	2008
As at 1 January	36	–251
Currency translation differences	–1	2
Additions (+)/disposals (–)	–438	–495
Deferred taxes recognised directly in equity	88	29
Changes in consolidated group	3	11
Reversed to income	61	450
Revaluation reserve in accordance with IAS 39 as at 31 December	–251	–254

In financial year 2008, available-for-sale financial instruments in the amount of €450 million (previous year: €61 million) were reversed to income, whilst the reserve was reduced by €495 million (previous year: €438 million) as a result of the remeasurement of available-for-sale financial instruments. The revaluation reserve relates almost entirely to gains or losses on the fair value remeasurement of financial instruments of the Deutsche Postbank Group.

40.3 Hedging reserve in accordance with IAS 39

The hedging reserve is adjusted by the effective portion of a cash flow hedge. The hedging reserve is released to income when the hedged item is settled.

€m

As at 1 January

–94

–96

Additions

–42

–126

Disposals

162

Hedging reserve in accordance with IAS 39 as at 31 December

–96

–60

The change in the hedging reserve is mainly the result of the increase in unrealised gains from hedging future operating currency transactions. In the financial year, unrealised and realised losses of €148 million were taken from the hedging reserve and recognised in operating profit, and unrealised and realised profits of €5 million were recognised in net finance costs/net financial income. Deferred taxes also affected the hedging reserve.

40.4 Revaluation reserve in accordance with IFRS 3


€m
	2007	2008
As at 1 January	0	0
Changes not recognised in income	0	8
Revaluation reserve in accordance with IFRS 3 as at 31 December	0	8

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