Financial Report 2008 - Leighton Holdings

Notes to the Financial Statements continuedfor the year ended 30 June 200820. RESERVESConsolidatedCompany2008$’0002007$’0002008$’0002007$’000Foreign currency translation reserveBalance at beginning of reporting period (51,058) (20,149)Total included in statement of recognised income and expense (83,998) (30,909)Balance at reporting date (135,056) (51,058) - -Hedging reserveBalance at beginning of reporting period 48,514 205Total included in statement of recognised income and expense (69,611) 48,309Balance at reporting date (21,097) 48,514 - -Fair value reserveBalance at beginning of reporting period 23,831 8,994Total included in statement of recognised income and expense 11,044 14,837Balance at reporting date 34,875 23,831 - -Associates equity reserveBalance at beginning of reporting period 11,145 10,658Total included in statement of recognised income and expense 8,855 487Balance at reporting date 20,000 11,145 - -Share based payments reserveBalance at beginning of reporting period 2,695 -Total included in income statement 7,951 2,695Balance at reporting date 10,646 2,695 - -Total reserves at reporting date (90,632) 35,127 - -Nature and purpose of reservesForeign currency translation reserveThe foreign currency translation reserve comprises foreign exchange differences arising from the translation of the financialstatements of foreign operations where their functional currency is different to the presentation currency of the Group, as well asfrom the translation of liabilities that hedge the Company’s net investment in foreign operations.Hedging reserveThe hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedginginstruments relating to future transactions. The reserve includes cash flow hedges relating to capital commitments for equityinvestments.Fair value reserveThe fair value reserve includes the cumulative net change in the fair value of available-for-sale assets until the asset is realisedor impaired.Associates equity reserveThe associates equity reserve is used to record the Group’s share of the post-acquisition increases in the reserves ofassociates.Share based payments reserveThe fair value of equity settled share based compensation is recognised in the income statement and revenue over the vestingperiod of the underlying grant.Leighton Holdings Limited Financial Report 2008 NOTES TO THE FINANCIAL STATEMENTS 24