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NOTES TO THE FINANCIAL STATEMENTS CONTINUED

NOTE 26 — SHARE CAPITAL (CONTINUED)

Ordinary shares

Effective 1 July 1998, the Company Law Review Act 1998 abolished the concept of par value shares and the concept of
authorised capital. Accordingly, the Company does not have authorised capital or par value in respect of its issued shares.

Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion to the
number of and amounts paid on the shares held. On a show of hands, every holder of ordinary shares present at a meeting in
person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.

Share buy-back

There is no current on-market buy-back.

Dividend reinvestment plan

The dividend reinvestment plan has been suspended since 1993.

Employee and executive share plans

Information relating to the plans is set out in Note 29.

Options

Information relating to the Management Share Option Plan, including details of options issued, exercised and lapsed during the
financial year and options outstanding at the end of the financial year, is set out in Note 29.

The Group Parent Entity

2007
$’000
2006
$’000
2007
$’000
2006
$’000
NOTE 27 — RESERVES AND RETAINED EARNINGS
Reserves
Available-for-sale investments revaluation
Investment property revaluation
Hedging
Share-based payments
Foreign currency translation
9,628
3,553
1,172
1,444
(4,374)
16,615
3,553
883
898
(2,223)
9,628
—
—
1,444
—
11,028
—
—
898
—
11,423 19,726 11,072 11,926
Movements in reserves
Available-for-sale investments revaluation reserve
Balance at the beginning of the year
Movement in fair value — net of tax
Recognised in Income Statement for investments sold — net of tax
16,615
6,337
(13,324)
19,483
1,700
(4,568)
11,028
1,419
(2,819)
13,207
2,389
(4,568)
Balance at the end of the year 9,628 16,615 9,628 11,028
Investment property revaluation reserve
Balance at the beginning of the year 3,553 3,553 — —
Balance at the end of the year 3,553 3,553 — —
Hedging reserve
Balance at the beginning of the year
Movement in fair value of cash flow hedging instruments — net of tax
Share of associates’ decrement in hedging reserve
883
705
(416)
—
883
—
—
—
—
—
—
—
Balance at the end of the year 1,172 883 — —
Share-based payments reserve
Balance at the beginning of the year
Amount recognised in Income Statement as employee expense
Amount charged to related entities
Other adjustments
898
477
28
41
732
506
—
(340)
898
306
199
41
732
273
233
(340)

Balance at the end of the year 1,444 898 1,444 898

The Group Parent Entity

2007
$’000
2006
$’000
2007
$’000
2006
$’000
NOTE 27 — RESERVES AND RETAINED
EARNINGS (CONTINUED)
Foreign currency translation reserve
Balance at the beginning of the year
Currency translation adjustment on controlled foreign
entities’ financial statements
Share of associates’ (decrement)/increment in foreign
currency translation reserve
(2,223)
(578)
(1,573)
(2,357)
(20)
154
—
—
—
—
—
—
Balance at the end of the year (4,374) (2,223) — —
Asset realisation reserve
Balance at the beginning of the year
Transfer to retained earnings
—
—
81,750
(81,750)
—
—
22,288
(22,288)
Balance at the end of the year — — — —
General reserve
Balance at the beginning of the year
Share of associates’ decrement in general reserve
Transfer to retained earnings
—
(2)
2
735
—
(735)
—
—
—
474
—
(474)
Balance at the end of the year — — — —

Available-for-sale investments revaluation reserve

This reserve includes the cumulative net change in the fair value of available-for-sale investments. Amounts are recognised in the
Income Statement when the associated assets are sold or impaired.

Investment property revaluation reserve

This reserve relates to property that has been reclassified as an investment property and represents the cumulative increase in fair
value of the property at the date of reclassification.

Hedging reserve

The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments
related to hedged transactions that have not yet occurred.

Share-based payments reserve

This reserve includes the cumulative fair value of management share options not exercised and the fair value of the executive
performance shares which have been recognised as an employee expense in the Income Statement.

Foreign currency translation reserve

The foreign currency translation reserve records the foreign currency differences arising from the translation of foreign operations,
the translation of transactions that hedge the Group’s net investment in a foreign operation or the translation of foreign currency
monetary items forming part of the net investment in a foreign operation and the Group’s share of associates’ increment or
decrement in the foreign currency translation reserve. Refer to accounting policy Note 1(d).

Asset realisation reserve

In prior years upon disposal of revalued assets, any related revaluation increment standing to the credit of the asset revaluation
reserve was transferred to the asset realisation reserve. This reserve has been transferred to retained earnings during the prior year.

General reserve

The amount standing to the credit of the general reserve resulted from prior years’ allocations of retained earnings for non-specific
purposes. This reserve has been transferred to retained earnings during the prior year. Current year movements relate to the