Notes to the Accounts

32. Notes to the company balance sheet

Tangible fixed assets (leasehold property)
Cost	1	1
Depreciation	(1)	(1)
Net book value	–	–

NOTE: There were no capital commitments for fixed assets at 31 December 1998.

Investment in subsidiaries
At 31 December 1997	1,963
Acquisition from subsidiaries	22
Subscription for additional share capital in subsidiaries	700
Disposals	(89)
Revaluations	2
At 31 December 1998	2,598

NOTE: Shares are stated at cost less provisions for diminution in value or directors’ valuations.

Deferred taxation
At 31 December 1997	–
Charged in the year	(1)
At 31 December 1998	(1)

NOTE: Deferred taxation derives from other timing differences.
Accruals and deferred income Accruals and deferred income includes £7m (1997: £10m) relating to the unamortised profit arising out of the unwinding of a sterling interest rate swap in 1994. The swap was arranged in 1992 in connection with the issue of £100m 10.75% Euro-sterling Bonds 2002. The profit is being amortised over the remaining life of the Bonds. £5m is due after one year. None of the amount falls due after five years.

NOTE: The special reserve represents the cumulative effect of cancellation of the Company’s share premium account. As permitted by Section 230(4) of the Companies Act 1985, only the Group’s profit and loss account has been presented.