text: NOTES TO THE FINANCIAL STATEMENTS 
  
  for the year ended 31 December 2004 
  
  **Consolidated** **Santos Ltd**
  
  **2004**
  **$million** 2003 
  $million  **2004**
  **$million** 2003 
  $million  **19. Foreign Currency Translation Reserve**
  
  Balance at the end of the year  **(9.0)** (8.8)  **–** – 
  
  **Movements during the year**
  Balance at the beginning of the year 
  Exchange difference on net investment in foreign operations and related hedges: 
  **(8.8)** (4.1)  **–** – 
  
  Gross hedges 
  Related income tax 
  Overseas net assets  **17.3**
  **(5.2)**
  **(12.3)** 123.5 
  (37.1) 
  (91.1)  **–**
  **–**
  **–** – 
  – 
  – 
  
  Net translation adjustment  **(0.2)** (4.7)  **–** – 
  
  Balance at the end of the year  **(9.0)** (8.8)  **–** – 
  
  The foreign currency translation reserve records the foreign currency differences arising from the translation of self-sustaining foreign operations, the 
  translation of transactions that hedge the Company’s net investment in a foreign operation or the translation of foreign currency monetary items 
  forming part of the net investment in a self-sustaining operation. 
  
  **Consolidated** **Santos Ltd**