Set out below is the capital section of a company's statement of financial position.

You are required to explain the five different reserves that are shown on this company's statement of financial position, including in your answer the possible reasons for their existence.

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31 Mar 20x2 £ 000 40,000 31 Mar 20x1 E'000 140,000 30,000 20,000 Equity share capital Preference share capital Share premium Capital redemption reserve Revaluation reserve General reserve Retained earnings 20,000 30,000 9,700 27,000 84,900 311,600 7,200 20,000 70,300 287,500