FGV Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 298 FGV HOLDINGS BERHAD EXAMINED OUR NUMBERS 44 OTHER RESERVES (CONTINUED) Company Capital redemption reserve RM’000 LTIP reserve RM’000 Total RM’000 2018 At 1 January 2018 - 416 416 Employee share grant - 1,519 1,519 Recharge to subsidiaries - 3,764 3,764 Transfer from treasury shares - (5,699) (5,699) At 31 December 2018 - - - 2017 At 1 January 2017 10,052 429 10,481 Transfer to par value regime on 31 January 2017 under Companies Act 2016 (10,052) - (10,052) Employee share grant - 2,425 2,425 Recharge to subsidiaries - 6,154 6,154 Transfer from treasury shares - (8,592) (8,592) At 31 December 2017 - 416 416 Available-for-sale reserve Available-for-sale reserve in the prior year included the Group’s share of available-for-sale reserves of joint ventures and associates. Capital redemption reserve Capital redemption reserve in prior financial year related to reserve created upon redemption of RCPS/RCCPS as required by 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 capital redemption reserve has become part of the Company’s share capital (Note 36). Long Term Incentive Plan ( “ LTIP ” ) reserve LTIP reserve relates to reserve created from the corresponding increase in equity from expenses recognised in profit or loss over the vesting period of the equity-settled share based compensation plan for the Group’s employees as disclosed in Note 55 to the financial statements. Cash flow hedge reserve The Group manages its cash flow interest rate risk with floating-to-fixed interest rate swaps which are designated in cash flow hedge relationships. To the extent this hedge is effective, the change in fair value of the hedge instrument is recognised in the cash flow hedge reserve. The gain or loss relating to the effective portion of the interest rate swaps is reclassified to profit or loss and recognising within ‘ finance cost ’ .