2008 Annual Report - SBM Offshore

126SBM Offshore Annual Report 2008 / Financial Statements 2008Other reservesThe other reserves comprise the hedging reserve and the foreign currency translation reserve. Themovement and breakdown of the other reserves can be stated as follows:In US$000 Hedging Translation Total otherreserve reserve reservesBalance at 1 January 2007 50,407 (28) 50,379Cash flow hedges:• Recognised in equity 8,104 – 8,104• Transfer to financial income and expenses ( 13,066) – ( 13,066)• Transfer to construction contracts and property,plant and equipment ( 30,346) – ( 30,346)Net investment hedge 3,041 – 3,041Currency translation differences:• Group companies – 8,821 8,821Balance at 31 December 2007 18,140 8,793 26,933Cash flow hedges:• Recognised in equity (227,168) – (227,168)• Transfer to financial income and expenses ( 14,462) – ( 14,462)• Transfer to construction contracts and property,plant and equipment ( 30,270) – ( 30,270)Net investment hedge 2,425 – 2,425Currency translation differences:• Group companies – (10,669) ( 10,669)Balance at 31 December 2008 (251,335) ( 1,876) (253,211)Hedging reserveThe hedging reserve consists of the effective portion of cash flow and net foreign investment hedginginstruments related to hedged transactions that have not yet occurred.Translation reserveThe foreign currency translation reserve is used to record exchange differences arising from thetranslation of the financial statements of the foreign subsidiaries.21. Long-term loans Long term loans and other liabilities comprise bank interest bearing loans and borrowings and otherand other liabilities loans. The breakdown is as follows:2008 2007US$000US$000Bank interest bearing loans and borrowings 1,349,983 921,505Other loans 80,336 –1,430,319 921,505