Kumba Iron Ore - Annual Report 2006

GROUP STATEMENT OF CHANGES IN EQUITY

for the year ended 31 December 2006

			Non-distributable reserves			Distributable reserves
			Foreign	Financial				Attributable
			currency	instruments	Equity-	At		to equity
	Share	Share	translation	revaluation	settled	acquisition	Retained	holders of	Minority	Total
	capital	premium	reserve	reserve	reserve	reserve	income	the parent	interest	equity
	Rm	Rm	Rm	Rm	Rm	Rm	Rm	Rm	Rm	Rm

OPENING BALANCE	–	–	–	–	–	–	–	–	–	–
at 1 January 2006
Acquisition of subsidiary	–	–	–	–	–	371	–	371	93	464
Net gains/(losses) not
recognised in
income statement	–	–	30	(6)	185	–	–	209	–	209
Currency translation
differences
Share-based payments	–	–	(40)	–	–	–	–	(40)	–	(40)
movement	–	–	–	–	185	–	–	185	–	185
Financial instruments
fair value movements
recognised in equity
– current period	–	–	–	2	–	–	–	2	–
– reported in net profit	–	–	–	(8)	–	–	–	(8)	–	(8)
Deferred tax on items
taken directly to equity	–	–	70	–	–	–	–	70	–	70
	–	–	–	–	–	–	–	–	–	–
Net profit	–	–	–	–	–	–	264	264	115	379
Issue of share capital	3	–	–	–	–	–	–	3	–	3
Transferred to
minority reserve	–	–	(6)	1	(3)	–	–	(8)	8	–

Balance at
31 December 2006	3	–	24	(5)	182	371	264	839	216	1 055

Foreign currency translation reserve

The foreign currency translation reserve comprises all foreign exchange differences arising from the translation of the financial statements of foreign entities that are not integral to the operations of the group.

Financial instruments revaluation reserve

The financial instruments revaluation reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments where the hedged transaction has not yet occurred.

Equity-settled reserve

The equity-settled reserve represents the fair value of services received and settled by equity instruments granted.

Insurance reserve

The insurance reserve represents the unrealised portion of commission receivable from reinsurers.