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28. Other reserves and retained earnings
| All figures in £ millions | Notes | Translation reserve | Fair value reserve | Total other reserves | Retained earnings |
|---|---|---|---|---|---|
| At 1 January 2006 | (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 |
9 | – | – | – | (220) |
| Equity settled transactions | 25 | – | – | – | 25 |
| Actuarial gains on retirement benefit obligations |
24 | – | – | – | 107 |
| Treasury shares released under employee share plans |
27 | – | – | – | (16) |
| Taxation on items charged to equity | 7 | – | – | – | 12 |
| At 31 December 2006 | (592) | – | (592) | 1,568 | |
| Net exchange differences on translation of foreign operations |
25 | – | 25 | – | |
| Cumulative translation adjustment disposed | 31 | 53 | – | 53 | – |
| Profit for the year attributable to equity holders of the Company |
– | – | – | 284 | |
| Dividends paid to equity holders of the Company |
9 | – | – | – | (238) |
| Equity settled transactions | 25 | – | – | – | 30 |
| Actuarial gains on retirement benefit obligations |
24 | – | – | – | 80 |
| Treasury shares released under employee share plans |
27 | – | – | – | (29) |
| Taxation on items charged to equity | 7 | – | – | – | 29 |
| At 31 December 2007 | (514) | – | (514) | 1,724 |
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. Included in the translation reserve is a £49m loss (2006: £53m loss) relating to net assets classified as held for sale.