103 / 158
103
Legal reserves
HEDGING
RESERVE
REVALUATION
RESERVE
CURRENCY
TRANSLATION
RESERVE
OTHER LEGAL
RESERVES OTHER RESERVES
TOTAL OTHER
RESERVES
Note
[23.6.1]
[23.6.2]
[23.6.3]
[23.6.4]
[23.6.5]
Balance as at 1 January 2015
- 19,039
45,619
141,276
340,189
- 85,301
422,744
Defined benefit plan actuarial gains/losses (-)
and asset limitation, after income tax
-
-
-
-
38,782
38,782
Foreign currency translation differences for
foreign operations, after income tax
-
-
173,407
-
-
173,407
Effective cash flow hedges, after income tax
3,832
-
-
-
-
3,832
Share of other comprehensive income of
associated companies and joint ventures
-
-
-
-
2,310
2,310
Movement in legal reserve
-
-
-
- 19,300
-
- 19,300
Total movement
3,832
-
173,407
- 19,300
41,092
199,031
Balance as at 31 December 2015
- 15,207
45,619
314,683
320,889
- 44,209
621,775
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.
ANNUAL REPORT 2016 -- BOSKALIS
103
ANNUAL REPORT 2016 – BOSKALIS