IHH Healthcare Berhad
l
Annual Report 2014
164
Notes to the Financial Statements
18. Share capital (continued)
Issue of shares
In 2014, the Company issued:
i)
34,000,000 new ordinary shares of RM1.00 each pursuant to the exercise of vested EPP options; and
ii)
9,596,018 new ordinary shares of RM1.00 each pursuant to the surrender of vested LTIP units.
Upon completion of the above, the issued and fully paid ordinary shares of the Company as at 31 December 2014 amounted to RM8,178,569,889.
The new ordinary shares issued during the financial year rank
pari passu
in all respects with the existing ordinary shares of the Company.
19. Other reserves
The movements in each category of the other reserves are disclosed in the consolidated statements of changes in equity.
The nature and purpose of each category of reserves are as follows:
(a) Share premium
Share premium mainly comprises the premium paid on subscription of shares in the Company over and above the par value of the shares
net of share listing expenses and fair value adjustments for the purpose of accounting for share consideration issued in connection with
acquisition of a subsidiary.
(b) Share option reserve
Share option reserve comprises the cumulative value of employee services received for the issue of share options and conditional award
of performance shares. When the options are exercised, the amount from the share option reserves is transferred to share capital and the
excess value above the par value of the ordinary shares issued is transferred to share premium. When the share options expire, the amount
from the share option reserve is transferred to retained earnings. Details of the share options are disclosed in Note 21.
(c) Fair value reserve
Fair value reserve comprises the cumulative net change in the fair value of available-for-sale financial assets until the investments are
derecognised or impaired.
(d) Revaluation reserve
The revaluation reserve relates to the revaluation of property, plant and equipment immediately prior to its reclassification as investment property.
(e) Hedge reserve
Hedge reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedges relating to hedged
transactions that have not yet occurred.
