FGV Annual Report 2014

38 Share Premium Share premium is recognised in conjunction with the listing of the Company’s shares on Main Market of Bursa Malaysia Securities Berhad. 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. 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. 41 Other Reserves Group Company 2014 2013 2014 2013 RM’000 RM’000 RM’000 RM’000 Available for sale reserves 32,456 13,739 – – Capital redemption reserves 10,052 10,052 10,052 10,052 42,508 23,791 10,052 10,052 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. 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. Introduction Performance Highlights About FGV Reports Financial Statements Others Strategy and Value Creation Performance Review & Progress Foreword to Shareholders Annual General Meeting Annual Report 2014 pg 295