146 FGV HOLDINGS BERHAD NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 41 REORGANISATION RESERVE The reorganisation reserve represents the difference between the fair value of the purchase consideration and carrying value of the net assets acquired arising from the acquisition of plantation estates. 42 OTHER RESERVES Other Cash flow comprehensive LTIP hedge income reserve reserve reserve Total Group RM’000 RM’000 RM’000 RM’000 2021 At 1 January 2021 15,321 – (4,697) 10,624 Fair value changes 53,976 – – 53,976 Cash flow hedges – – 2,827 2,827 At 31 December 2021 69,297 – (1,870) 67,427 2020 At 1 January 2020 (18,148) – (2,534) (20,682) Fair value changes 47,476 – – 47,476 Realisation upon disposal (14,007) – – (14,007) Cash flow hedges – – (2,163) (2,163) Employee share grant – 2,404 – 2,404 Transfer from treasury shares – (2,404) – (2,404) At 31 December 2020 15,321 – (4,697) 10,624 Company 2021 2020 Company RM’000 RM’000 LTIP reserve At 1 January – – Employee share grant – 672 Recharge to subsidiaries – 1,732 Transfer from treasury shares – (2,404) At 31 December – – Long Term Incentive Plan (“LTIP”) reserve LTIP reserve related 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. 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’.
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