Notes to the accounts
6. Foreign currency translation
The exchange rates used for translation of UK pound transactions and balances in these accounts are as follows:
| 2008 | 2007 | 2006 | |
|---|---|---|---|
| Income statement (average rate) | 2.00 | 1.88 | 1.80 |
| Balance sheet (period end rate) | 1.97 | 1.97 | 1.77 |
| Impact of translation on: | |||
| – Cash and cash equivalents less borrowings | 2.2 | 27.7 | (7.9) |
| – Foreign currency net assets | 0.1 | 57.3 | (41.6) |
The exchange impact on foreign currency net assets has been taken to reserves in accordance with IAS 21 'The effects of changes in foreign exchange rates'.