Annual Report 2012 - IOI Group

NOTES TO THEFINANCIAL STATEMENTS32. RESERVESGroupCompany2012RM’0002011RM’0002012RM’0002011RM’000Share premium 1,985,878 1,944,320 1,985,878 1,944,320Capital reserves (Note 32.1) 132,842 142,039 125,068 129,514Treasury shares, at cost (Note 32.2) (139,616) – (139,616) –Foreign currency translation reserve (Note 32.3) (191,381) (154,309) – –1,787,723 1,932,050 1,971,330 2,073,834The movements in reserves are shown in the statements of changes in equity.32.1 Capital reservesGroupCompany2012RM’0002011RM’0002012RM’0002011RM’000Net accretion in Group’s share of net assets arisingfrom shares issued by certain subsidiaries tonon-controlling shareholders 9,015 9,015 – –Capital redemption reserves arising from thecancellation of treasury shares 64,362 64,362 64,362 64,362Share option reserves 59,465 68,662 60,706 65,152132,842 142,039 125,068 129,51432.2 Treasury sharesThe shareholders of the Company, by a special resolution passed at an extraordinary general meeting held on 18 November1999, approved the Company’s plan to repurchase up to 10% of the issued and paid-up share capital of the Company (“ShareBuy Back”). The authority granted by the shareholders was subsequently renewed during subsequent Annual GeneralMeetings of the Company, including the last meeting held on 24 October 2011.The Directors of the Company are committed to enhancing the value of the Company to its shareholders and believe thatthe Share Buy Back can be applied in the best interests of the Company and its shareholders. The Company has the right tocancel, resell these shares and/or distribute these shares as dividends at a later date. As treasury shares, the rights attachedto voting, dividends and participation in other distribution is suspended.194IOI CORPORATION BERHADAnnual Report 2012