27 Other reserves and retained earnings
| All figures in £ millions | Notes | Translation reserve |
Fair value reserve |
Total other reserves |
Retained earnings |
|---|---|---|---|---|---|
| At 1 January 2005 | (491) | – | (491) | 749 | |
| Net exchange differences on translation of foreign operations | 327 | – | 327 | – | |
| Cumulative translation adjustment disposed | (14) | – | (14) | – | |
| Profit for the year attributable to equity holders of the Company | – | – | – | 624 | |
| Dividends paid to equity holders of the Company | 10 | – | – | – | (205) |
| Equity settled transactions | 24 | – | – | – | 23 |
| Actuarial gains on post-retirement plans | 24 | – | – | – | 26 |
| Taxation on items charged to equity | 8 | – | – | – | 12 |
| Transition adjustment on adoption of IAS 39 | 3 | – | 3 | (15) | |
| At 31 December 2005 | (175) | – | (175) | 1,214 | |
| Net exchange differences on translation of foreign operations | (417) | – | (417) | – | |
| Profit for the year attributable to equity holders of the Company | – | – | – | 446 | |
| Dividends paid to equity holders of the Company | 10 | – | – | – | (220) |
| Equity settled transactions | 24 | – | – | – | 25 |
| Actuarial gains on post-retirement plans | 24 | – | – | – | 107 |
| Treasury shares released under employee share plans | 26 | – | – | – | (16) |
| Taxation on items charged to equity | 8 | – | – | – | 12 |
| At 31 December 2006 | (592) | – | (592) | 1,568 |
The translation reserve includes exchange differences arising from the translation of the net investment in foreign operations and of borrowings and other currency instruments designated as hedges of such investments.