NOTES TO
FINANCIAL STATEMENTS
December 31, 2015
24
OTHER RESERVES
Group
Company
2015
2014
2015
2014
US$’000
US$’000
US$’000
US$’000
Statutory reserve (a)
27
27
–
–
Hedging reserve (b)
(4,579)
(5,288)
–
–
Employee benefits obligation reserve (c)
539
1,458
–
–
(4,013)
(3,803)
–
–
(a)
Statutory reserve
A subsidiary in Thailand is required to set aside a statutory reserve equal to the least 5% of its net profit
each time the subsidiary pays out a dividend, until such reserve reaches 10%of the subsidiary’s registered
share capital. The statutory reserve cannot be used to offset any deficit and dividend payment.
(b)
Hedging reserve
The hedging reserve represent the Group’s interest portion of the fair value changes on derivative financial
instruments held by the associate which is designated as hedging instruments in cash flow hedges that
is determined to be an effective hedge by the associate.
Group
Company
2015
2014
2015
2014
US$’000
US$’000
US$’000
US$’000
Balance at beginning of the year
(5,288)
(5,395)
–
–
Share of net change in
associate’s hedging reserve
709
107
–
–
Balance at end of the year
(4,579)
(5,288)
–
–
(c)
Employee benefits obligation reserve
The employee benefits obligation reserve represents the effects of the remeasurement of defined benefit
obligation (Note 20).
25
FOREIGN CURRENCY TRANSLATION RESERVE
The 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.
127
FOCUSED & RESILIENT
SAMUDERA SHIPPING LINE LTD
ANNUAL REPORT 2015
