Download PDF - ChartNexus

124
SapuraCrest Petroleum Berhad
Annual Report 2010
noteS to the FinAnCiAl StAtementS
31 January 2010
26. otheR ReSeRveS (non-DiStRiButABle) (Cont’D)
Share option reserve
group and Company
2010 2009
Rm’000 Rm’000
At 1 February 347 679
Share options granted under ESOS:
Exercised during the year (Note 24) (311) (332)
Share options lapsed during the year (36) —
At 31 January — 347
The nature and purpose of each category of reserve are as follows:
(a) Foreign currency translation reserve
The foreign currency 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 presentation currency. It is
also used to record the exchange differences arising from monetary items which form part of the Group’s net investment in
foreign operations, where the monetary item is denominated in either the functional currency of the reporting entity or the
foreign operation.
(b) Revaluation reserve
This reserve includes the cumulative net change in fair value of vessels above their costs.
(c) Capital reserve
The capital reserve comprises profits, which would otherwise have been available for dividend, being used to redeem preference
shares of the Company in previous years.
(d) merger reserve
Pursuant to the relief given under Section 60(4) of the Companies Act, 1965, the Company has not recorded any premium arising
from the issue of shares for the acquisition of Probadi Sdn. Bhd.
The difference between the recorded carrying value of the investment in Probadi Sdn. Bhd. (that is the value of the shares of the
Company issued as consideration) and the value of Probadi Sdn. Bhd. shares transferred to the Company had been treated as a
merger reserve in the consolidated financial statements.
(e) Share option reserve
The share option reserve represents the equity-settled share options granted to employees. This reserve is made up of the
cumulative value of services received from employees recorded on grant of share options.