NOTES TO THE FINANCIAL STATEMENTS
For the Financial Year Ended 31 December 2014
30 RESERVES (CONT’D)
(b)
AFS Reserve
AFS reserve records the cumulative fair value changes of available-for-sale financial assets until they are de-recognised
or impaired. The movements in the AFS reserve are as follows:
Group
Company
2014
2013
2014
2013
$’000
$’000
$’000
$’000
At 1 January
(6,924)
23,262
–
9,577
Net changes in the reserve
26,026
(30,186)
–
(9,577)
At 31 December
19,102
(6,924)
–
–
Net changes in the reserve:
– Net fair value changes during the year
20,561
(6,167)
–
–
– Recognised in profit or loss:
– on disposal of investment securities
2,286
–
–
–
– on disposal of an associate
–
802
–
–
– Reversal of fair value changes on investment
securities which became an associate
–
(23,338)
–
(9,577)
– Reversal of fair value changes on investment
securities re-designated as marketable
securities
1,050
–
–
–
– Share of reserve of associates
2,129
(1,483)
–
–
26,026
(30,186)
–
(9,577)
(c)
Hedging Reserve
Hedging reserve records the portion of the fair value changes on derivative financial instruments designated as
hedging instruments in cash flow hedges that is determined to be an effective hedge. The movements in the
hedging reserve are as follows:
Group
2014
2013
$’000
$’000
At 1 January
(363)
(18)
Net changes in the reserve
(1,004)
(345)
At 31 December
(1,367)
(363)
Net changes in the reserve:
– Net fair value changes during the year
(616)
(409)
– Recognised in profit or loss:
– Ineffective cash flow hedge
(70)
132
– Share of reserve of associates
(318)
(68)
(1,004)
(345)
130
THE STRAITS TRADING COMPANY LIMITED ANNUAL REPORT 2014
