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CIMIC Group Limited Annual Report 2016 |
Financial Report
Notes continued
for the 12 months to 31 December 2016
21. RESERVES
CONTINUED
Nature and purpose of reserves
Foreign currency translation reserve
The foreign currency translation reserve comprises foreign exchange differences arising from the translation of the financial statements
of operations where their functional currency is different to the presentation currency of the Group, as well as from the translation of
liabilities that hedge the Group’s net investment in foreign operations.
Hedging reserve
The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments
relating to future transactions.
Fair value reserve
The fair value reserve includes the cumulative net increase above cost of the fair value of available-for-sale assets until the asset is realised
or impaired.
Associates equity reserve
The associates equity reserve is used to record the Group’s share of the changes in the reserves of associates.
Equity reserve
The equity reserve accounts for the differences between the fair value of, and the amounts paid or received for, equity transactions with
non-controlling interests.
Share buy-back reserve
The share buy-back reserve represents the excess above par value of CIMIC shares that were purchased and subsequently cancelled. The
cancellation of the shares creates a non-distributable reserve.
Share based payments reserve
The share based payments reserve is used to recognise the fair value of share based payments issued to employees over the vesting
period, and to recognise the value attributable to the share based payments during the reporting period.
22. RETAINED EARNINGS
Note
12 months to
December 2016
$m
12 months to
December 2015
$m
Balance at beginning of reporting period
1,616.7
1,482.2
Included in statement of profit or loss
580.3
520.4
Dividends paid
23
(320.5)
(385.9)
Balance at reporting date
1,876.5
1,616.7
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