NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2015
122
THE STRAITS TRADING COMPANY LIMITED
30.
RESERVES (CONT’D)
(d)
Revaluation Reserve
Revaluation reserve is used to record increases in the fair value of land and buildings and decreases to the extent
that such decrease relates to an increase on the same asset previously recognised in equity. The movements in the
revaluation reserve are as follows:
Group
Company
2015
2014
2015
2014
$’000
$’000
$’000
$’000
At 1 January
8,034
1,893
208
202
Net changes in the reserve
7,544
6,141
(6)
6
At 31 December
15,578
8,034
202
208
Net changes in the reserve:
– Surplus on revaluation of land and buildings
794
745
(6)
6
– Sale of a subsidiary
–
(41)
–
–
– Share of reserve of an associate
6,750
5,437
–
–
7,544
6,141
(6)
6
(e)
Translation Reserve
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 and Company’s presentation
currency. It is also used to record the effect of exchange differences arising from monetary items which form part
of the Group’s net investments in foreign operations. The movements in the translation reserve are as follows:
Group
Company
2015
2014
2015
2014
$’000
$’000
$’000
$’000
At 1 January
(27,365)
(25,901)
(8,382)
(7,323)
Net effect of exchange adjustments
(16,537)
(1,464)
(9,899)
(1,059)
At 31 December
(43,902)
(27,365)
(18,281)
(8,382)
Net effect of exchange adjustments:
– Translation of foreign operations
(7,568)
1,031
(9,899)
(1,059)
– Net investments in foreign operations
(3,259)
(305)
–
–
– Transfer to profit or loss on disposal of a
subsidiary
–
(719)
–
–
– Attributable to disposal group classified as
held for sale
(46)
(761)
–
–
– Share of reserve of associates
(5,664)
(710)
–
–
(16,537)
(1,464)
(9,899)
(1,059)
