Accounting policy

Equity instruments issued by the Group are recorded at the proceeds received, net of direct issue costs.

Share capital and reserves

As at 30 November 2014, the number of ordinary shares available for issue under the Block Listing Facilities was 19,094,500 (2013: 6,221,636). These ordinary shares will only be issued and allotted when the shares under the relevant share incentive plan have been awarded or the share options under the Group's executive share ownership scheme and non-employee share options and Sharesave schemes have been exercised. They are therefore not included in the total number of ordinary shares outstanding below.

The movements in the called up share capital and share premium accounts are set out below:

Ordinary
shares
Number of
shares
(million)
Ordinary
shares
£m
Share
premium
£m
At 2 December 2012614.612.3247.8
Issues of ordinary shares3.10.13.7
At 1 December 2013617.712.4251.5
Issues of ordinary shares0.50.1
Allotted in respect of Joint Share Ownership Scheme0.2
Allotted in respect of share option schemes2.70.13.3
At 30 November 2014620.912.5255.1

Included in the total number of ordinary shares outstanding above are 34,810,561 (2013: 35,249,176) ordinary shares held by the Group's employee benefit trust (see Note 4.11(a)). The ordinary shares held by the trustee of the Group's employee benefit trust pursuant to the Joint Share Ownership scheme are treated as treasury shares in the Consolidated balance sheet in accordance with IAS 32 ''Financial Instruments: Presentation''. These ordinary shares have voting rights but these have been waived by the trustee (although the trustee may vote in respect of shares that have vested and remain in the trust). The number of allotted, called up and fully paid shares, excluding treasury shares, at the end of each period differs from that used in the basic profit/(loss) per share calculation in Note 2.9 as basic profit/(loss) per share is calculated using the weighted average number of ordinary shares in issue during the period, excluding treasury shares.

The movements in reserves other than share premium are set out below:

NotesTreasury
shares
reserve
£m
Reverse
acquisition
reserve
£m
Fair value
reserve
£m
At 2 December 2012(53.9)(116.2)(0.7)
Movement on derivative financial instrument4.11(b)0.6
Reacquisition of interest in treasury shares4.11(a)1.5
At 1 December 2013(52.4)(116.2)(0.1)
Movement on derivative financial instrument4.11(b)(0.2)
Reacquisition of interest in treasury shares4.11(a)0.6
At 30 November 2014 (51.8)(116.2)(0.3)

(a) Treasury shares reserve

This reserve arose when the Group issued equity share capital under its JSOS, which is held in trust by the trustee of the Group's employee benefit trust. Treasury shares cease to be accounted for as such when they are sold outside the Group or the interest is transferred in full to the participant pursuant to the terms of the JSOS. Participant interests in unexercised shares held by participants are not included in the calculation of treasury shares; unvested interests of leavers which have been reacquired by the Group's employee benefit trust during the period are now accounted for as treasury shares. See Note 4.12(b) for more information on the JSOS.

(b) Other reserves

The fair value reserve comprises gains and losses on movements in the Group's cash flow hedges, which consist of foreign currency and interest rate hedges.

The acquisition by the Company of the entire issued share capital in 2010 of Ocado Limited was accounted for as a reverse acquisition under IFRS 3 (revised). Consequently the previously recognised book values and assets and liabilities have been retained and the consolidated financial information for the period to 30 November 2014 has been presented as if the Company had always been the parent company of the Group.