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(b) Reserves
Consolidated
2017
$’000
2016
$’000
Asset revaluation reserve
693,520
792,678
Cash flow hedging reserve - foreign exchange
(9)
19
Profit reserves
270,815
231,148
964,326
1,023,845
Consolidated
2017
$’000
2016
$’000
Movements:
Revaluation surplus - Property, plant and equipment
Opening balance at 1 July
792,678
930,938
Revaluation on asset revaluation reserve - (net of tax)
(98,841)
(138,260)
Asset revaluation reserve - asset disposal
(317)
-
Balance as at 30 June
693,520
792,678
Profit reserve
Opening balance at 1 July
231,148
204,841
Profit transferred into the reserve
122,481
117,566
Dividend paid
(82,814)
(91,259)
Balance as at 30 June
270,815
231,148
Cash flow hedges
Opening balance at 1 July
19
(884)
Hedge liability - interest rate swap
-
884
Hedge reserve - foreign exchange
(28)
19
Balance as at 30 June
(9)
19
964,326
1,023,845
(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.
101
NOTE 8
EQUITY (CONTINUED)