Full Annual Report 2006 - Singapore Technologies Engineering

135
Notes to the Financial Statements 31 DECEMBER 2006
(Currency – Singapore dollars unless otherwise stated)
5. OTHER RESERVES (continued)
Statutory reserve
Subsidiaries in the People’s Republic of China follow the accounting principles and relevant financial regulations of the
People’s Republic of China (“PRC GAAP”) applicable to wholly foreign-owned enterprises and Sino-foreign equity joint venture
enterprises in the preparation of the accounting records and statutory financial statements, and the appropriation of the profit
arrived at under PRC GAAP for each year to a statutory reserve.
Fair value reserve
Fair value reserve records the cumulative fair value changes of available-for-sale financial assets until they are derecognised
or impaired as well as the portion of the fair value changes on the derivative financial instruments designated as hedging
instruments in cash flow hedges that is determined to be an effective hedge.
Share-based payment reserve
Share-based payment reserve represents the equity-settled share options and performance shares granted to employees. The
reserve is made up of the cumulative value of services received from employees recorded on grant of equity-settled share
options and performance shares. The expense for services received will be recognised over the vesting period.
Asset revaluation reserve
The asset revaluation reserve records increases in the fair value of freehold land and buildings and decreases to the extent
that such decrease relates to an increase on the same asset previously recognised in equity.
6. UNAPPROPRIATED PROFIT
GROUP
2006 2005
$’000 $’000
Retained by:
The Company 530,676 396,815
Subsidiaries 335,670 422,686
Associated companies and joint ventures 94,308 95,745
960,654 915,246