Skip to main content

42. Financial statements of the parent company

a) Balance sheet of the Company, Anglo American plc, as at 31 December 2008

US$ million Note 2008 2007
Fixed assets
Fixed asset investments 42c 12,925 12,883
Current assets
Amounts due from subsidiaries   1,305 208
Prepayments and other debtors   138 114
Cash at bank and in hand   2
  1,445 322
Creditors due within one year
Cash held on behalf of subsidiaries   (59) (41)
Amounts owed to subsidiaries   (215) (596)
Other creditors   (8) (4)
  (282) (641)
Net current assets/(liabilities) 1,163 (319)
Total assets less current liabilities 14,088 12,564
Net assets 14,088 12,564
Capital and reserves
Called-up share capital 42b 738 738
Share premium account 42b 2,713 2,713
Capital redemption reserve 42b 115 115
Other reserves 42b 1,955 1,955
Share-based payment reserve 42b 22 22
Profit and loss account 42b 8,545 7,021
Total shareholders' funds (equity) 14,088 12,564

The financial statements were approved by the Board of directors on 19 February 2009.

Cynthia Carroll Chief executive
René Médori Finance director

b) Reconciliation of movements in equity shareholders' funds

US$ million Called-up share capital Share premium account Capital redemption reserve Other reserves(1) Share-based payment reserve Profit
and loss account(2)
Total
Balance at 1 January 2007 771 2,713 82 1,955 15 4,075 9,611
Profit for the financial year 11,404 11,404
Issue of treasury shares under employee share schemes 143 143
Share-based payments 11 11
Capital contribution to group undertakings 14 14
Cancellation of treasury shares (33) 33
Transfer between share-based payment reserve and profit and loss account (4) 4
Share buybacks (2,383) (2,383)
Dividends paid(3) (1,192) (1,192)
Dividend in specie relating to Mondi demerger (5,044) (5,044)
Balance at 1 January 2008 738 2,713 115 1,955 22 7,021 12,564
Profit for the financial year 2,936 2,936
Issue of treasury shares under employee share schemes 41 41
Share-based payments 12 12
Capital contribution to group undertakings 20 20
Transfer between share-based payment reserve and profit and loss account (12) 12
Share buybacks (259) (259)
Dividends paid(3) (1,226) (1,226)
Balance at 31 December 2008 738 2,713 115 1,955 22 8,545 14,088
(1)
At 31 December 2008 other reserves of $1,955 million (2007: $1,955 million) were not distributable under the Companies Act 1985.
(2)
At 31 December 2008 $483 million (2007: $421 million) of the Company profit and loss account of $8,545 million (2007: $7,021 million) was not distributable under the Companies Act 1985.
(3)
Dividends paid relate only to shareholders on the United Kingdom principal register excluding dividends waived by Greenwood Nominees Limited as nominees for Butterfield Trust (Guernsey) Limited, the trustee for the Anglo American employee share scheme. Dividends paid to shareholders on the Johannesburg branch register are distributed by a South African subsidiary in accordance with the terms of the Dividend Access Share Provisions of Anglo American plc's Articles of Association.

The audit fee in respect of the parent company was $10,000 (2007: $14,000). Fees payable to Deloitte for non-audit services to the Company are not required to be disclosed because they are included within the consolidated disclosure in note 4.

c) Fixed asset investments

  Investments in subsidiaries
US$ million 2008 2007
Cost
At 1 January 12,891 12,883
Additions 22 5,093
Capital contributions 20 14
Disposals and demerger (5,099)
At 31 December 12,933 12,891
Provisions for impairment
At 1 January and 31 December (8) (8)
Net book value
At 31 December 12,925 12,883

d) Accounting policies: Anglo American plc, the Company

The Anglo American plc (the Company) balance sheet and related notes have been prepared in accordance with United Kingdom Generally Accepted Accounting Principles (UK GAAP) and in accordance with UK company law. The financial information has been prepared on a historical cost basis as modified by the revaluation of certain financial instruments.

A summary of the principal accounting policies is set out below.

The preparation of financial statements in accordance with UK GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Although these estimates are based on management's best knowledge of the amount, event or actions, following implementation of these standards, actual results may differ from those estimated.

As permitted by section 230 of the Companies Act 1985, the profit and loss account of the Company is not presented as part of these financial statements. The profit after tax for the year of the Company amounted to $2,936 million (2007: $11,404 million).

Significant accounting policies

Deferred tax

Deferred tax is provided in full on all timing differences that result in an obligation at the balance sheet date to pay more tax, or a right to pay less tax, at a future date, subject to the recoverability of deferred tax assets. Deferred tax assets and liabilities are not discounted.

Share-based payments

The Company has applied the requirements of FRS 20 Share-based Payment. In accordance with the transitional provisions, FRS 20 has been applied to all grants of equity instruments after 7 November 2002 that had not vested as at 1 January 2005.

The Company makes equity settled share-based payments to the directors, which are measured at fair value at the date of grant and expensed on a straight line basis over the vesting period, based on the Company's estimate of shares that will eventually vest. For those share schemes with market vesting conditions, the fair value is determined using the Monte Carlo method at the grant date. The fair value of share options issued with non-market vesting conditions has been calculated using the Black Scholes model. For all other share awards, the fair value is determined by reference to the market value of the share at the date of grant. For all share schemes with non-market related vesting conditions, the likelihood of vesting has been taken into account when determining the associated charge. Vesting assumptions are reviewed during each reporting period to ensure they reflect current expectations.

The Company also makes equity settled share-based payments to certain employees of certain subsidiary undertakings. Equity settled share-based payments that are made to employees of the Company's subsidiaries are treated as increases in equity over the vesting period of the award, with a corresponding increase in the Company's investments in subsidiaries, based on an estimate of the number of shares that will eventually vest.

Any payments received from subsidiaries are applied to reduce the related increases in investments in subsidiaries.

Accounting for share-based payments is the same as under IFRS 2 and details on the schemes and option pricing models relevant to the charge included in the Company financial statements are set out in note 28 to the consolidated financial statements of the Group for the year ended 31 December 2008.

Investments

Investments represent equity holdings in subsidiaries, joint ventures and associates and are held at cost less provision for impairment.

Back to the top