FGV HOLDINGS BERHAD | AUDITED FINANCIAL STATEMENTS 2023 169 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023 39 FOREIGN EXCHANGE RESERVE The foreign exchange reserve is used to record exchange difference arising from the translation of the financial statements of foreign operations whose functional currencies are different from that of the Group’s presentation currency. It also represents the share of foreign exchange differences in the cumulative net investment of foreign associates and joint ventures. 40 REORGANISATION RESERVE The reorganisation reserve represents the difference between the fair value of the purchase consideration and carrying value of the net assets acquired arising from the acquisition of plantation estates. 41 OTHER RESERVES Group Other comprehensive income RM’000 Cash flow hedge reserve RM’000 Total RM’000 2023 At 1 January 2023 29,618 (123) 29,495 Fair value changes (7,676) - (7,676) Cash flow hedges - 109 109 At 31 December 2023 21,942 (14) 21,928 2022 At 1 January 2022 69,297 (1,870) 67,427 Fair value changes (35,031) - (35,031) Realisation of other comprehensive income upon disposal of FVOCI (4,648) - (4,648) Cash flow hedges - 1,747 1,747 At 31 December 2022 29,618 (123) 29,495 Cash flow hedge reserve The Group manages its cash flow interest rate risk with floating-to-fixed interest rate swaps which are designated in cash flow hedge relationships. To the extent this hedge is effective, the change in fair value of the hedge instrument is recognised in the cash flow hedge reserve. The gain or loss relating to the effective portion of the interest rate swaps is reclassified to profit or loss and recognising within ‘finance cost’.
RkJQdWJsaXNoZXIy NDgzMzc=