FGV Audited Financial Statements 2019

182 FGV HOLDINGS BERHAD NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 43 OTHER RESERVES (CONTINUED) Company LTIP reserve RM’000 2019 At 1 January 2019 - Employee share grant 668 Recharge to subsidiaries 2,921 Transfer from treasury shares (3,589) At 31 December 2019 - 2018 At 1 January 2018 416 Employee share grant 1,519 Recharge to subsidiaries 3,764 Transfer from treasury shares (5,699) At 31 December 2018 - Long Term Incentive Plan (“LTIP”) reserve LTIP reserve relates to reserve created from the corresponding increase in equity from expenses recognised in profit or loss over the vesting period of the equity-settled share based compensation plan for the Group’s employees as disclosed in Note 55 to the financial statements. Cash flow hedge reserve The Group manages its cash flow interest rate risk with floating-to-fixed interest rate swaps which are designated in cash flow hedge relationships. To the extent this hedge is effective, the change in fair value of the hedge instrument is recognised in the cash flow hedge reserve. The gain or loss relating to the effective portion of the interest rate swaps is reclassified to profit or loss and recognising within ‘finance cost’.