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NOTES TO THE FINANCIAL STATEMENTS
31 MARCH 2018
Kumpulan Fima Berhad (11817-V) •
Annual Report 2018
27. Other reserves (cont’d.)
Capital
reserve
Asset
revaluation
reserve
Employee
share option
reserve
Total
Company
RM’000
RM’000
RM’000
RM’000
2018
At 1 April 2017/31 March 2018
-
21,065
-
21,065
2017
At 1 April 2016
-
21,065
4,427
25,492
Transfer to retained earnings for share
options lapsed
-
-
(2,302)
(2,302)
Grant of equity-settled share options
-
-
43
43
Share options exercised
-
-
(2,168)
(2,168)
-
-
(4,427)
(4,427)
At 31 March 2017
-
21,065
-
21,065
The nature and purpose of each category of reserve are as follows:
(a) Asset revaluation reserve
The asset revaluation reserve is used to record increases in the fair value of freehold land and buildings and decreases
to the extent that such decreases relates to an increase on the same asset previously recognised in equity.
(b) Foreign currency translation reserve
The foreign currency translation reserve is used to record exchange differences 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 is also used to record the exchange differences arising from monetary items which form part of the Group’s
net investment in foreign operations, where the monetary item is denominated in either the functional currency of the
reporting entity or the foreign operation.
(c) Employee share reserve
Employee share reserve represents the equity-settled share options and shares granted to employees and directors
under the ESOS and RSGS, respectively. The reserve is made up of the cumulative value of services received from
employees recorded over the vesting period commencing from the grant date of equity-settled share options and
shares, under the ESOS and RSGS, respectively and is reduced by the expiry or exercise of the share options. When the
share options expire, the amount from the employee share reserve is transferred to retained earnings.