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Notes to the financial statements
31 December 2014
Bursa Malaysia
•
Annual Report 2014
143
26. Other reserves (cont’d.)
(b) Capital redemption reserve
The capital redemption reserve relates to the capitalisation of retained earnings arising from the redemption of preference shares by the following subsidiaries:
Group
2014
2013
RM’000
RM’000
Bursa Malaysia Depository
5,000
5,000
Bursa Malaysia Securities
250
250
5,250
5,250
The capital redemption reserve is non-distributable in the form of dividends but may be applied in paying up unissued shares of the subsidiaries to be
issued to the shareholder of the subsidiaries as fully paid bonus shares.
(c) Foreign currency translation reserve
The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of a subsidiary
whose functional currency differs from the Group’s presentation currency.
(d) Share grant reserve
The share grant reserve represents the value of equity-settled shares granted to employees under the SGP. This reserve is made up of the cumulative value
of services received from employees recorded on grant of shares.
(e) Clearing fund reserves
Group
2014
2013
Note
RM’000
RM’000
Amount set aside for:
CGF, in accordance with Rules of Bursa Malaysia Securities Clearing
(i)
25,000
25,000
DCF, in accordance with Rules of Bursa Malaysia Derivatives Clearing
(ii)
5,000
5,000
30,000
30,000
(i) CGF reserve
The CGF reserve is an amount set aside following the implementation of the CGF. The quantum of the CGF was set at RM100,000,000 and may
increase by the quantum of interest arising from investments of the fixed contributions. The CGF comprises contributions from TCPs and appropriation
from Bursa Malaysia Securities Clearing, and other financial resources. The CGF composition is disclosed in Note 23(i).
(ii) DCF reserve
Pursuant to the Rules of Bursa Malaysia Derivatives Clearing, Bursa Malaysia Derivatives Clearing set up a DCF for derivatives clearing and settlement.
The DCF comprises contributions from CPs and appropriation of certain amounts from Bursa Malaysia Derivatives Clearing’s retained earnings.
The DCF composition is disclosed in Note 23.