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NOTE 9 (CONTINUED)
EQUITY
(i) Asset revaluation reserve
The property, plant and equipment revaluation reserve is used to record increments and decrements
on the revaluation of infrastructure assets.
(ii) Profit reserve
The profit reserve is used to preserve current profits for the purpose of paying dividends in future
years.
(iii) Hedge reserve - cash flow hedges
The hedging reserve comprises the effective portion of the cumulative net change in the fair
value of cash flow hedging instruments related to hedged transactions that have not yet occurred.
Amounts are reclassified to the consolidated income statement when the associated hedged
transaction settles.
(c) Retained earnings
Movements in retained earnings were as follows:
Consolidated
2016
$’000
2015
$’000
Balance at 1 July
(131,205)
(134,883)
Net profit/(loss) for the year after tax
117,566
134,598
Re-measurement (losses)/gains on defined
benefit plans - (net of tax)
(5,437)
3,678
Transfer to profit reserve
(117,566)
(134,598)
Balance as at 30 June
(136,642)
(131,205)
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