75
FLEXIGROUP LIMITED FINANCIAL REPORT 2011
27. Reserves and retained profts
Consolidated
2011
2010
$’000
$’000
(a) Reserves
Share-based payment reserve (note 1 y(iv))
1,189
(450)
Foreign currency translation reserve (note 1 d(ii))
(1,363)
(258)
Cash fow hedges (note 25)
(228)
–
(402)
(708)
Movements:
Share-based payments reserve
Balance at 1 July
(450)
(2,850)
Transfer from share-based payments on issue of shares under Long Term Incentive Plan
(1,661)
–
Share-based payments expense for the year
3,300
2,400
Balance at 30 June
1,189
(450)
Movements:
Foreign currency translation reserve
Balance at 1 July
(258)
(113)
Currency translation diferences arising during the year
(1,105)
(145)
Balance at 30 June
(1,363)
(258)
Movements:
Cash fow hedges
Balance at 1 July
–
–
Revaluation – gross
(228)
–
Balance at 30 June
(228)
–
(b) Retained profts
Movements in retained profts were as follows:
Balance at 1 July
131,352
86,780
Net proft for the year
51,760
58,922
Dividends
(26,179)
(14,350)
Balance at 30 June
156,933
131,352
(c) Nature and purpose of reserves
i. Foreign currency translation reserve
Foreign currency translation of the foreign controlled entities is taken to the foreign currency translation reserve
as described in note 1(d). The reserve is recognised in proft and loss when the net investment is disposed of.
ii. Share-based payment reserve
The Share-based payment reserve is used to recognise:
• the fair value of options and rights issued to Directors and employees but not exercised
• the fair value of shares issued to Directors and employees
• other share-based payment transactions
iii. Cash fow hedge reserve
The hedging reserve is used to record gains or losses on a hedging instrument in a cash fow hedge that are recognised in
other comprehensive income as described in note 1(p). Amounts are reclassifed to proft or loss when the associated hedge
transaction afects proft or loss.