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FINANCIAL STATEMENTS
Axiata Group Berhad | Annual Report 2016
189
15. RESERVES
Note
Group
Company
2016
RM’000
2015
RM’000
2016
RM’000
2015
RM’000
Distributable
Retained earnings
(a)
9,335,025
10,223,278
7,404,389
7,706,203
Non-distributable
Capital contribution reserve
(b)
16,598
16,598
16,598
16,598
Merger reserve
(c)
346,774
346,774
-
-
Hedging reserve
(d)
(325,702)
(255,992)
-
-
ESOS and RSA reserve
(e)
135,647
130,229
135,647
130,229
Actuarial reserve
11,107
(92)
-
-
Other reserve
(f)
(1,316,116)
(172,753)
-
-
AFS reserve
35,998
3,367
-
-
Currency translation differences arising from translation of:
- subsidiaries
1,989,249
702,032
-
-
- joint venture
4,202
3,598
-
-
- associates
295,349
225,481
-
-
2,288,800
931,111
-
-
Total
10,528,131
11,222,520
7,556,634
7,853,030
(a) The Company can also distribute tax exempt dividends from its tax exempt income account. The Company has tax exempt income accounts
as at 31 December 2016 amounting to approximately RM260.1 million (2015: RM249.9 million) available for distribution as tax exempt dividends
to shareholders subject to the availability of retained profits. The tax exempt income accounts are subject to agreement by the Inland Revenue
Board.
(b) The Group’s and the Company’s capital contribution reserve relates to the ESOS of Telekom Malaysia Berhad, former holding company, which
were made available to the employees of the Group and the Company.
(c) The Group’s merger reserve relates to the credit difference arising from the business combination accounted under the predecessor method
of accounting upon completion of a Group’s restructuring exercise on 25 April 2008.
(d) The Group’s hedging reserve consists of net investment hedge and cash flow hedge arising from effective hedges as disclosed in Note 19(f, g & h)
to the financial statements.
(e) The Group’s and the Company’s ESOS and RSA reserve relates to the Axiata Share Scheme of the Company, which were made available to
the employees of the Group and the Company as disclosed in Note 14(a) to the financial statements.
(f) The Group’s other reserve relates to the put option liabilities over shares held by NCI as disclosed in Note 19(d & e) to the financial statements.