I recall a great hue and cry about battle honours following the Falklands War.
I know it's Wikipedia, but I found this article of interest:
http://en.wikipedia.org/wiki/Battle_honour
A battle honour may be granted to infantry/cavalry regiments or battalions, as well as ships (see Naval battle honours below) and squadrons; they are rarely granted to sub-units such as companies, platoons and sections in the army. Battle honours are usually presented in the form of a name of a country, region, or city where the unit's distinguished act took place, usually together with the year when it occurred.
Not every battle fought will automatically result in the granting of a battle honour. Conversely, a regiment or a battalion might obtain more than one battle honour over the course of a larger operation. For example, the 2nd Battalion of the Scots Guards were awarded two battle honours for their role in the Falklands War; "Tumbledown Mountain" specifically for the Battle of Mount Tumbledown, and "Falkland Islands 1982" for the overall conflict. Similarly, while in Korea, Princess Patricia's Canadian Light Infantry earned both "Kapyong" (for the Battle of Kapyong) and "Korea 1951–1953" (for the overall war). A unit does not have to successfully defeat their adversary to earn a battle honour: the Hong Kong Volunteer Defence Corps received the battle honour "Hong Kong" despite the defeat and capture of most of the force during the Japanese invasion of Hong Kong, while the cruiser HMAS Sydney was awarded the naval engagement honour "Kormoran 1941" after being sunk with all aboard by the German raider Kormoran.
Supporting corps/branches such as medical, service, ordnance, or transport do not currently receive battle honours. However and uniquely the Royal Logistic Corps has five battle honours inherited from its previous transport elements, such as the Royal Waggon Train. Commonwealth artillery does not maintain battle honours as they carry neither colours nor guidons—though their guns by tradition are afforded many of the same respects and courtesies. However, both the Royal Artillery and Royal Engineers were in 1832 granted by King William IV the right to use the Latin "Ubique", meaning everywhere, as a battle honour. This is worn on the cap badge of both the Corps of Royal Engineers and the Royal Regiment of Artillery (but not the Royal Horse Artillery). Likewise the Royal Marines, although a colours-carrying service, was granted, along with the conventional battle honour of "Gibraltar", the "Great Globe itself" by King George IV for its very numerous battle honours around the world.
The practice was later extended to these same regiments and corps in the successor Commonwealth armed forces.