Financial Statements

Notes to the Company Financial Statementsfor the year to 31 December 2008

4. Investments in Group undertakings

Shares
£m
Loans
£m
Total
£m
Cost
31 December 2007 3,949.2 366.7 4,315.9
Changes in exchange rates 140.1 140.1
Additions 7.5 7.5
Disposals (64.0) (64.0)
31 December 2008 3,892.7 506.8 4,399.5
Provision for impairment 1,614.7 72.1 1,686.8
31 December 2007
Charge for the year 1,749.9 1,749.9
Disposals
31 December 2008 3,364.6 72.1 3,436.7
 
Carrying amount
31 December 2008 528.1 434.7 962.8
31 December 2007 2,334.5 294.6 2,629.1

All of the above investments are unlisted.

Particulars of principal subsidiary undertakings are listed in Particulars of Principal Subsidiary Undertakings page of this report, which forms part of these financial statements.

During the year, the Company recognised an impairment charge of £1,749.9m (2007: £1,614.7m) against the carrying value of its investments in subsidiary companies. The impairment reflects the decrease in value of assets in the underlying subsidiaries following the downturn in the housing market in the UK and US.