RESERVES

Available for sale reserve

Available for sale reserve consists of unrealised gains or losses arising from changes in the fair value of non-monetary investments classified as available-for-sale financial assets.

Credit loss reserve

The Credit Loss Reserve relates to Merchant Finance & Investment Company Limited in accordance with the requirements of the Reserve Bank of Fiji.

Other equity reserve

Other equity reserve relates principally to acquisition of minority interest shareholdings in Blue Lagoon Cruises Limited and RB Patel Group Limited.

Asset revaluation reserve

The asset revaluation reserve consists of increments arising from the revaluation of the Group’s property, plant and equipment.

Foreign currency translation reserve

The foreign currency translation reserve relates to foreign currency translations as at year end on consolidation of subsidiary companies operating in foreign jurisdictions whose financial statements and transactions are denominated in a currency other than the functional and presentation currency of the Group.

Common control reserve

As described in note 2.26, the acquisition of FHL Media Limited by the Group is accounted for as a common control transaction. As a consequence, the difference between the fair value of the consideration paid and the existing book value of assets and liabilities of FHL Media Limited is taken to a common control reserve. Upon disposal of all interests in FHL Media Limited by the Group, this reserve will be transferred to retained earnings.

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FHL News Letter – March 2021

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