Boskalis_Annual_Report_2016

103

ANNUAL REPORT 2016 -- BOSKALIS 103 ANNUAL REPORT 2016 – BOSKALIS

Legal reserves

CURRENCY TRANSLATION RESERVE

HEDGING RESERVE

REVALUATION RESERVE

OTHER LEGAL

TOTAL OTHER RESERVES

RESERVES OTHER RESERVES

Note

[23.6.1]

[23.6.2]

[23.6.3]

[23.6.4]

[23.6.5]

- 19,039

45,619

141,276

340,189

- 85,301

422,744

Balance as at 1 January 2015

Defined benefit plan actuarial gains/losses (-) and asset limitation, after income tax Foreign currency translation differences for foreign operations, after income tax Effective cash flow hedges, after income tax Share of other comprehensive income of associated companies and joint ventures

-

-

-

-

38,782

38,782

-

- -

173,407

- -

- -

173,407

3,832

-

3,832

- -

- -

- -

-

2,310

2,310

Movement in legal reserve

- 19,300

-

- 19,300

3,832

-

173,407

- 19,300

41,092

199,031

Total movement

45,619

314,683

320,889

- 44,209

621,775

Balance as at 31 December 2015

- 15,207

Under Dutch law the legal reserves are not available for dividend distribution to shareholders.

23.6.1 HEDGING RESERVE (LEGAL RESERVE) The hedging reserve comprises the fair value of effective cash flow hedges, not yet realized at the balance sheet date, net of taxation, including results realized on the ‘rolling forward’ of existing hedges as a result of differences between the duration of the hedges concerned and the underlying cash flows. Details about the movements in the hedging reserve are disclosed in note 28.2. 23.6.2 REVALUATION RESERVE (LEGAL RESERVE) This reserve mainly relates to profit with respect to the revaluation of existing non-controlling interests prior to the recognition of business combinations and book results on contributions in newly formed strategic partnerships. In 2016 an amount of EUR 56.8 million was recognized relating to the revaluation of VBMS prior to the business combination and the KOTUG SMIT Towage book profit. See also note 5 ‘Business combinations and other significant transactions’. 23.6.3 CURRENCY TRANSLATION RESERVE (LEGAL RESERVE) The currency translation reserve comprises all accumulated currency translation differences arising from investments in foreign operations, which are denominated in functional currencies other than the presentation currency used by the Group, including related intragroup financing. These currency translation differences are accumulated as from the IFRS transition date (1 January 2004) and are taken to the statement of profit or loss at disposal or termination of these foreign operations. At the acquisition date of activities (business combinations) with a functional currency other than the euro, the translation reserve of these activities is zero. 23.6.4 OTHER LEGAL RESERVES A legal reserve is formed to account for differences between the cost price and the equity value of joint ventures and associated companies where the Group cannot independently decide on the distribution of dividends, unless such differences are already included in the legal reserve for accumulated currency translation differences on foreign operations. 23.6.5 OTHER RESERVES Other reserves mainly comprise actuarial movements related to the limitation on net plan assets of defined benefit pension plans and the actuarial gains and losses originating from the difference between the realized and the expected movement in defined benefit obligations and the return on plan assets.