MISC Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS HIGHLIGHTS OF THE YEAR OUR BUSINESS OUR LEADERSHIP OUR PERFORMANCE OUR COMMITMENT TO SUSTAINABILITY OUR GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION 50 TH ANNUAL GENERAL MEETING 309 MISC BERHAD ANNUAL REPORT 2018 308 28. OTHER RESERVES (CONT'D.) Fair value reserve Currency translation reserve Total RM'000 RM'000 RM'000 Corporation At 1 January 2018 53,036 1,928,723 1,981,759 Adjustment on initial application of MFRS 9 (53,036) - (53,036) At 1 January 2018 (Restated) - 1,928,723 1,928,723 Currency translation differences - 2,163,665 2,163,665 At 31 December 2018 - 4,092,388 4,092,388 At 1 January 2017 56,009 6,039,954 6,095,963 Currency translation differences - (4,111,231) (4,111,231) Fair value loss on non-current investments (2,973) - (2,973) At 31 December 2017 53,036 1,928,723 1,981,759 The nature and purpose of each category of reserves are as follows: (a) Revaluation reserve Revaluation reserve represents surplus arising from revaluation of certain freehold land. (b) Capital reserve Capital reserve represents reserve arising from bonus issue by subsidiaries. (c) Other capital reserve Other capital reserve represents the Group’s share of its subsidiaries' reserve. (d) Statutory reserve Statutory reserve is maintained by overseas subsidiaries and joint ventures in accordance with the laws of the host countries. (e) Fair value reserve In the previous financial year, this reserve records changes in available-for-sale financial assets until they are disposed off or impaired in accordance to MFRS 139: Financial Instruments. At 1 January 2018, all fair value changes of equity investments (except for investment in associate, joint venture and subsidiaries) are recognised to profit or loss. (f) Hedging reserve Hedging reserve represents the effective portion of the gain or loss on hedging instruments in the Group's cash flow hedges and includes the Group's share of hedging reserve of joint ventures. 28. OTHER RESERVES (CONT'D.) (g) Currency translation reserve Currency translation reserve comprises all foreign exchange differences arising from translation of the financial statements of the Corporation and foreign operations with different functional currencies from that of the Group's presentation currency. 29. DEFFERED TAX Group 2018 RM'000 2017 RM'000 At 1 January (68,342) (48,145) Recognised in income statement: In Malaysia (6,506) (15,296) Outside Malaysia 2,420 (2,770) (4,086) (18,066) Currency translation differences 467 (2,131) At 31 December (71,961) (68,342) Presented after appropriate offsetting as follows: Deferred tax assets (104,379) (99,484) Deferred tax liabilities 32,418 31,142 (71,961) (68,342) The components and movements of deferred tax liabilities and assets during the financial year, prior to offsetting are as follows: Deferred tax liabilities of the Group: Accelerated capital allowances Others Total RM'000 RM'000 RM'000 At 1 January 2018 81,904 21,093 102,997 Recognised in income statement: In Malaysia 9,829 - 9,829 Outside Malaysia - 1,047 1,047 At 31 December 2018 91,733 22,140 113,873 At 1 January 2017 53,457 23,381 76,838 Recognised in income statement: In Malaysia 28,447 - 28,447 Outside Malaysia - (2,288) (2,288) At 31 December 2017 81,904 21,093 102,997