FGV Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 296 FGV HOLDINGS BERHAD EXAMINED OUR NUMBERS 40 SHARE PREMIUM Group and Company 2018 RM’000 2017 RM’000 At 1 January - 3,371,685 Transition to no-par value regime on 31 January 2017 under the 2016 Act (Note 39) - (3,371,685) At 31 December - - Share premium was recognised in conjunction with the listing of the Company’s shares on Main Market of Bursa Malaysia Securities Berhad. Share premium was not available for distribution as cash dividends. Prior to 31 January 2017, the application of the share premium account was governed by Sections 60 and 61 of the Companies Act, 1965. In accordance with the transitional provisions set out in Section 618(2) of the 2016 Act, on 31 January 2017 any amount standing to the credit of the Company’s share premium account has become part of the Company’s share capital (Note 39). 41 TREASURY SHARES During the financial year, the Company purchased 3,115,900 (31.12.2017: 5,261,100; 1.1.2017: 859,800) of its issued ordinary shares listed on the Main Market of Bursa Malaysia Securities Berhad from the open market at an average price of approximately RM1.62 per share (31.12.2017: RM1.62 per share; 1.1.2017: RM1.73 per share). The total consideration paid was RM4,920,000 (31.12.2017: RM8,588,000; 1.1.2017: RM1,488,000) including transaction costs of RM33,702 (31.12.2017: RM30,348; 1.1.2017: RM1,690). The purchase transactions were financed by internally generated funds. The shares purchased are retained as treasury shares. None of the treasury shares held were resold or cancelled during the financial year. In the current financial year, 3,452,600 (31.12.2017: 5,289,500; 1.1.2017: Nil) of its treasury shares of RM5,699,000 (31.12.2017: RM8,592,000; 1.1.2017: Nil) vested to the employees and employees of the subsidiaries within the Group as part of equity settled share based compensation plan (Note 55). 42 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. 43 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.