Notes to the financial statements

for the year ended 3 January 2009

25.Other reserves

	Capital and merger reserves €'000	Currency reserve €'000	Fair value reserve €'000	Total €'000
Balance at 30 December 2006	116,421	(7,603)	4,878	113,696
Translation differences on foreign currency net investments	-	(14,878)	-	(14,878)
Revaluation of interest rate swaps - loss in year	-	-	(3,714)	(3,714)
Foreign exchange contracts - gain in year	-	-	2,237	2,237
Transfers to income statement
- Foreign exchange contracts - gain in year	-	-	(2,445)	(2,445)
- Forward commodity contracts - gain in year	-	-	(594)	(594)
- Interest rate swaps - gain in year	-	-	(1,401)	(1,401)
Revaluation of forward commodity contracts - gain in year	-	-	11	11
Revaluation of available for sale investments - gain in year	-	-	17,512	17,512
Deferred tax on fair value adjustments	-	-	(3,028)	(3,028)
Cost of share options	587	-	-	587
Discount on own shares vested	(74)	-	-	(74)
Balance at 29 December 2007	116,934	(22,481)	13,456	107,909
Translation differences on foreign currency net investments	-	17,251	-	17,251
Revaluation of interest rate swaps - loss in year	-	-	(16,508)	(16,508)
Foreign exchange contracts - loss in year	-	-	(484)	(484)
Transfers to income statement
- Foreign exchange contracts - gain in year	-	-	(342)	(342)
- Forward commodity contracts - gain in year	-	-	(11)	(11)
- Interest rate swaps - loss in year	-	-	477	477
- Sale of quoted investments - gain in year	-	-	(2,910)	(2,910)
Revaluation of forward commodity contracts - loss in year	-	-	(519)	(519)
Revaluation of available for sale investments - loss in year	-	-	(3,597)	(3,597)
Deferred tax on fair value adjustments	-	-	964	964
Cost of share options	827	-	-	827
Discount on options	(175)	-	-	(175)
Balance at 3 January 2009	117,586	(5,230)	(9,474)	102,882

Capital and merger reserves
Capital and merger reserves reflect (i) Sharesave Scheme through which charges relating to granting of both shares and options are recorded (ii) cost of share options under the 2007 LTIP and 2008 LTIP schemes accounted for as own shares, (iii) the net share premium, that is the excess of fair value over nominal value of ordinary shares issued, in connection with the merger of Avonmore Foods plc and Waterford Foods plc.

Currency reserve
Currency reserve reflects the foreign exchange gains and losses that form part of the net investment in foreign operations. Where Group companies have a functional currency different from the presentation currency, their assets and liabilities are translated at closing rate at the balance sheet date, income and expenses in the income statement are translated at the average rate for the year, resulting exchange differences are taken to the currency reserve within equity.

Fair value reserve
Fair value reserve reflects the effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges. Amounts accumulated in the fair value reserve are recycled to the income statement in the periods when the hedged item affects profit or loss. Unrealised gains and losses arising from changes in the fair value of available for sale investments are recognised in the fair value reserve. When such investments are sold or impaired, the accumulated fair value adjustments are recycled to the income statement.