FGV Annual Report 2013

Felda Global Ventures Holdings Berhad 288 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2013 40 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. The movement in the reorganisation reserve is as follows: Group 2013 2012 RM’000 RM’000 At 1 January (2,088,969) 2,347,742 Effects of LLA (Note 22(e): - LLA liability - (5,842,694) - Amounts due to a significant shareholder - (54,690) - Deferred tax assets - 1,460,673 - (4,436,711) At 31 December (2,088,969) (2,088,969) 41 OTHER RESERVES Group Company 2013 2012 2013 2012 RM’000 RM’000 RM’000 RM’000 Available for sale reserves 13,739 20,027 - - Capital redemption reserves 10,052 10,052 10,052 10,052 Other reserves - 33,615 - 1,459 23,791 63,694 10,052 11,511 Available for sale reserves relates to the Group’s share of available for sale reserves of joint ventures and associates. Capital redemption reserves relates to reserve created upon redemption of RCPS/RCCPS as required by Companies Act, 1965. Other reserves related to the capital contribution which represents the difference between fair value and advance from a significant shareholder as a result of the application of FRS139. 42 RETAINED EARNINGS Under the single-tier tax system which came into effect from the year of assessment 2008, companies are not required to have tax credits under Section 108 of the Income Tax Act, 1967 for dividend payment purposes. Dividends paid under this system are tax exempt in the hands of shareholders. The Company has opted to pay single-tier dividends as it does not have any Section 108 tax credits.