71 / 136
69
2016
2015
$’000
$’000
Hedge reserve
Balance 1 August
(9,735)
(1,877)
Revaluation, gross
1,925
(27,115)
Revaluation, deferred tax
(627)
8,638
Transfer to profit, gross
13,032
15,471
Transfer to profit, deferred tax
(3,909)
(4,599)
Share of associates (decrements)
(442)
(253)
Balance 31 July
244
(9,735)
Hedge Reserve
Movements in the hedge reserve predominately relate to New Hope Corporation Limited’s derivative
financial instruments which are used to hedge exposures to foreign currency exchange rates. Refer to
note 22 for further details.
c) Nature and purpose of other reserves
General reserve
The general reserve records funds set aside for future requirements of the Group and relate to Washington H. Soul
Pattinson and Company Limited (the Parent company).
Capital profits reserve
This reserve represents amounts allocated from retained profits that were profits of a capital nature.
Share-based payments reserve
The share-based payments reserve is used to recognise the fair value of options and rights issued to employees,
but not yet exercised.
Foreign currency translation reserve
The foreign currency translation reserve records the foreign currency differences which arise from the translation
of self-sustaining foreign operations, and foreign exchange movements.
Equity reserve
This reserve includes the tax effect of movements in the carrying value of equity accounted associates where this
movement has been recognised directly in equity.