FGV Annual Report 2013

Felda Global Ventures Holdings Berhad 287 38 SHARE PREMIUM Group and Company 2013 2012 RM’000 RM’000 At 1 January 3,371,685 881,783 Redemption of RCPS/RCCPS - (881,783) Share premium recognised in conjunction with the IPO* - 3,371,685 At 31 December 3,371,685 3,371,685 * Share premium recognised in conjunction with the IPO are as follows: Group and Company 2012 RM’000 Share premium arising from the issuance of 980,000,000 new ordinary shares issued with a par value of RM1 each at fair value of RM4.55 per share (i) 3,453,277 Share based payment relating to 227,229,800 shares issued at RM4.45 per share (ii) 25,723 Share issue expenses (iii) (107,315) 3,371,685 (i) Share premium comprises the 980,000,000 new ordinary shares issued with a par value of RM1 each at a fair value of RM4.55 per share in conjunction with the listing and quotation of the Company’s shares on Main Market of Bursa Malaysia Securities Berhad. (ii) Of the 980,000,000 new ordinary shares issued, 257,229,800 shares were issued at an issue price of RM4.45 per share. The difference between the fair value and issue price was recognised as share based payment as tabulated below: Group and Company 2012 RM’000 Fair value of shares issued at RM4.55 per share 1,170,396 Issue price of shares at RM4.45 per share (1,144,673) Share based payment 25,723 (iii) Share issue expenses comprising underwriting fees, placement fees and brokerage fees totalling RM107,315,000 in relation to the IPO were set off against the share premium account during the financial year in accordance with Section 60 of Companies Act, 1965. Share premium is not available for distribution as cash dividends. 39 FOREIGN EXCHANGE RESERVE The foreign exchange reserve is used to record exchange difference arising from the translation of the financial statements of foreign operations whose functional currencies are different from that of the Group’s presentation currency. It also represents the share of foreign exchange differences in the cumulative net investment of foreign associates and joint ventures.