Financial Statements Notes to the Financial Statements 16. OTHER RESERVES The movement in each category of the other reserves are disclosed in the consolidated statements of changes in equity. The nature and purpose of each category of reserves are as follows: (a) Share option reserve Share option reserve comprises the cumulative value of employee services received for the issue of share options and conditional award of performance shares. (b) Revaluation reserve Revaluation reserve relates to the revaluation of property, plant and equipment immediately prior to its reclassification as investment property. (c) Hedge reserve Hedge reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments used to hedge against cash flow variability arising from interest payments on floating rate loans. (d) Cost of hedging reserve Cost of hedging reserve reflects gain or loss on the portion excluded from the designated hedging instrument that relates to the time value element of interest rate cap contracts. (e) Capital reserve Capital reserve comprises mainly: (i) non-cash contribution from/distribution to holding companies within the Group for the common control transfer of subsidiaries; (ii) difference between the consideration paid/received and net assets acquired/disposed in equity transactions with non-controlling interests; (iii) capital gain/loss arising from the payment of a non-controlling interest’s subscriptions to the share capital of subsidiaries or arising from the Group’s subscription of additional shares of non-wholly owned subsidiaries; (iv) financial liabilities arising from initial issue of put options to non-controlling interests for sale of interests in subsidiaries to the Group, and its subsequent remeasurement; and (v) realised exchange gains/losses on payment of coupons of perpetual securities. (f) Legal reserve Legal reserve comprises reserves set aside by certain local authorities, and is distributable only if certain conditions are met. (g) Foreign currency translation reserve Foreign currency translation reserve of the Group comprises: (i) foreign exchange differences arising from the translation of the financial statements of foreign operations whose functional currencies are different from the functional currency of the Company; (ii) the exchange differences on monetary items which form part of the Group’s net investment in the foreign operations, provided certain conditions are met; (iii) the effective portion of any foreign currency differences arising from hedges of the Group’s net investment in a foreign operation; and (iv) the difference between the adjusted balances of opening equity for the effects of applying MFRS 129 and the closing equity of the previous year. (h) Fair value reserve Fair value reserve comprises the cumulative net change in the fair value of equity and debt securities designated at fair value through other comprehensive income until the assets are derecognised or impaired. IHH Healthcare Berhad | Annual Report 2024 164
RkJQdWJsaXNoZXIy NDgzMzc=