KINGSMEN CREATIVES LTD
ANNUAL REPORT
2014
83
Notes to the Financial Statements
31 December 2014
25.
Other reserves
Group
Company
2014
2013
2014
2013
$’000 $’000
$’000 $’000
Foreign currency translation reserve
(1,774)
(2,520)
–
–
Statutory reserve fund
707
707
–
–
Gain on reissuance of treasury shares
1,826
1,354
1,826
1,354
Premium paid on acquisition of non-controlling interests
(2,549)
(2,549)
–
–
(1,790)
(3,008)
1,826
1,354
Foreign currency translation reserve
Group
Company
2014
2013
2014
2013
$’000 $’000
$’000 $’000
At beginning of the year
(2,520)
(2,811)
–
–
Exchange differences on translating foreign operations
746
291
–
–
At end of the year
(1,774)
(2,520)
–
–
Foreign currency translation reserve represents exchange differences arising from the translation of the financial
statements of foreign operations whose functional currencies are different from that of the Group’s presentation
currency.
Statutory reserve fund
Group
Company
2014
2013
2014
2013
$’000 $’000
$’000 $’000
At beginning and end of the year
707
707
–
–
In accordance with the Foreign Enterprise Law applicable in the People’s Republic of China (“PRC”), the subsidiaries
in the PRC are required to make appropriations to the Statutory Reserve Fund (“SRF”). At least 10% of the statutory
after tax profits as determined in accordance with the applicable PRC accounting standards and regulations must be
allocated to the SRF until the cumulative total of the SRF reaches 50% of the subsidiary’s registered capital. Subject
to approval from the relevant PRC authorities, the SRF may be used to offset any accumulated losses or increase the
registered capital of the subsidiary. The SRF is not available for dividend distribution to shareholders.
Gain on reissuance of treasury shares
Group
Company
2014
2013
2014
2013
$’000 $’000
$’000 $’000
At beginning of the year
1,354
518
1,354
518
Gain on reissuance of treasury shares during the year
taken to equity pursuant to performance share scheme
472
836
472
836
At end of the year
1,826
1,354
1,826
1,354
The Company reissued 866,200 (2013: 1,670,850) treasury shares pursuant to its performance share scheme at an
average fair value per share of $0.929 (2013: $0.884). The excess of the average fair value per share over the weighted
average cost per treasury share of $0.385 (2013: $0.385) was recognised in this reserve. This reserve is not available
for dividend distribution to shareholders.
