Deutsche Post DHL - Annual Report 2010

Consolidated Financial Statements

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Consolidated Financial Statements

Notes to the Consolidated Financial Statements of Deutsche Post AG

Balance sheet disclosures

40 Other reserves


€m
	2009	2010
	2009	2010	Capital reserves	2,147	2,158
Revaluation reserve in accordance with IAS 39	7	86
Hedging reserve in accordance with IAS 39	–77	–33
Revaluation reserve in accordance with IFRS 3	7	6
Currency translation reserve	–1,215	–682
Other reserves	869	1,535

40.1 Capital reserves


€m
	2009	2010
	2009	2010	Capital reserves as at 1 January	2,142	2,147
Additions
Issue of rights under 2009 Share Matching Scheme	5	6
Issue of rights under 2010 Share Matching Scheme	0	14
Exercise of rights under 2009 Share Matching Scheme	0	–9
Capital reserves as at 31 December	2,147	2,158

A new system to grant variable remuneration components for some of the Group’s executives was introduced in the previous year. In the period up to 31 December 2010, an amount of €20 million (31 December 2009: €5 million) was transferred to the capital reserves for the 2009 and 2010 tranches of the Share Matching Scheme. Exercise of the rights to shares in April 2010 reduced the capital reserves by €9 million due to the corresponding issuance of treasury shares to the executives.

40.2 Revaluation reserve in accordance with IAS 39

The revaluation reserve comprises gains and losses from changes in the fair value of available-for-sale financial assets that have been recognised in other comprehensive income. This reserve is reversed to profit or loss either when the assets are sold or otherwise disposed of, or if the fair value of the assets falls permanently below their cost.


€m
	2009	2010
	2009	2010	As at 1 January	–222	7
Currency translation differences	–5	1
Unrealised gains/losses	455	5
Share of associates	130	90
Realised gains/losses	–351	–16
Revaluation reserve as at 31 December before tax	7	87
Deferred taxes	0	–1
Revaluation reserve as at 31 December after tax	7	86

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 profit or loss when the hedged item is settled.


€m
	2009	2010
	2009	2010	As at 1 January	–32	–78
Additions	–1	–67
Disposals in balance sheet (basis adjustment)	4	0
Disposals in income statement	–49	109
Hedging reserve as at 31 December before tax	–78	–36
Deferred taxes	1	3
Hedging reserve as at 31 December after tax	–77	–33

The change in the hedging reserve is mainly the result of the recognition of previously unrealised gains and losses from hedging future operating currency transactions. In the financial year, unrealised losses totalling €12 million from the hedging reserve were recognised in operating profit under other operating expenses (previous year: unrealised gains of €–54 million were recognised in other operating income); unrealised losses of €97 million (previous year: €5 million) were recognised in net financial income. In the past financial year, there were no adjusting entries for hedging transactions related to the acquisition of non-current non-financial assets (previous year: €4 million). Deferred taxes have been recognised in respect of the hedging reserve.