FGV Annual Report 2015

315 WHO WE ARE & WHAT WE DO OUR STRATEGIC INTENT & PERFORMANCE HOWWE ARE GOVERNED CREATING SUSTAINABLE VALUE OUR NUMBERS ADDITIONAL INFORMATION DETAILS OF THE ANNUAL GENERAL MEETING Notes to the Financial Statements For The Financial Year Ended 31 December 2015 ADDRESSING OUR RISKS & OPPORTUNITIES Felda Global Ventures Holdings Berhad Annual Integrated Report 2015 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 2015 2014 2015 2014 RM’000 RM’000 RM’000 RM’000 Available for sale reserves 8,885 32,456 - - Capital redemption reserves 10,052 10,052 10,052 10,052 18,937 42,508 10,052 10,052 Available for sale reserves include 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.