Notes to the Financial Statements (Group)
19 Capital and reserves
| Cumulative translation differences included within retained earnings | 2009 $m |
2008 $m |
2007 $m |
|---|---|---|---|
| Balance at beginning of year | 1,323 | 2,414 | 1,945 |
| Foreign exchange arising on consolidation | 388 | (1,355) | 489 |
| Exchange adjustments on goodwill (recorded against other reserves) | 13 | (27) | 20 |
| Foreign exchange on borrowings | (68) | 291 | (40) |
| Net exchange movement in retained earnings | 333 | (1,091) | 469 |
| Balance at end of year | 1,656 | 1,323 | 2,414 |
Other reserves
The other reserves arose from the cancellation of £1,255m of share premium account by the Company in 1993 and the redenomination of share capital ($157m) in 1999. The reserves are available for writing off goodwill arising on consolidation and, subject to guarantees given to preserve creditors as at the date of the court order, are available for distribution.
Retained earnings
The cumulative amount of goodwill written off directly to reserves resulting from acquisitions, net of disposals, amounted to $667m (2008: $654m; 2007: $681m) using year end rates of exchange. At 31 December 2009, 24,178 shares, at a cost of $1m, have been deducted from retained earnings (2008: nil shares, at a cost of $nil; 2007: nil shares, at a cost of $nil).
There are no significant statutory or contractual restrictions on the distribution of current profits of subsidiaries, joint ventures or associates; undistributed profits of prior years are, in the main, permanently employed in the businesses of these companies. The undistributed income of AstraZeneca companies overseas might be liable to overseas taxes and/or UK taxation (after allowing for double taxation relief) if they were to be distributed as dividends (see Note 4).
