145 / 174
financiAL STATEMENTs
Annual Report 2017
143
NOTES TO THE FINANCIAL STATEMENTS
24. OTHER RESERVES (Cont’d.)
The nature and purpose of each category of reserve are as follows:
(a) Asset Revaluation Reserve
The asset revaluation reserve is used to record increases in the fair value of freehold land, leasehold land and buildings
and decreases to the extent that such decrease relates to an increase on the same asset previously recognised in equity.
(b) Foreign Currency Translation Reserve/(Deficit)
The foreign currency translation reserve/(deficit) is used to record exchange differences arising from the translation of the
financial statements of foreign operations whose functional currency is different from that of the Group’s presentation
currency. It is also used to record the exchange differences arising from monetary items which form part of the Group’s net
investment in foreign operations, where the monetary item is denominated in either the functional currency of the reporting
entity or the foreign operation.
(c) Equity Contribution from Parent
On 19 November 2011, the penultimate holding company, Kumpulan Fima Berhad (“KFima”) implemented an Employees
Share Scheme (“ESS”) comprising of the Share Option Scheme and the Restricted Share Grant Scheme. The ESS is
governed by Bye-Laws which was approved by KFima’s shareholders at the extraordinary general meeting held on 21
September 2011. The ESS had expired on 17 November 2016. The ESS comprises the following:
-
Employee Share Option Scheme (“ESOS”)
; whereby eligible employees are granted the right to subscribe for a
number of KFima’s shares at the prescribed subscription price subject to the terms and conditions of the Bye-Laws.
No performance targets are required to be met before the options may be granted under the ESOS.
-
Restricted Share Grant Scheme (“RSGS”)
; whereby the employees having a designation of general manager
and above will be granted the right to have a number of KFima’s shares vested in them, subject to the terms and
conditions of the Bye-Laws. The RSGS requires performance targets to be met prior to the vesting of KFima’s shares.
In implementing the RSGS, KFima has established a trust for the purposes of subscribing for the new shares and
transferring such new shares to the entitled employees as the Options Committee shall direct.
Equity contribution from parent represents the equity-settled share options and shares granted by KFima to the employees
of the Group. The reserve is made up of the cumulative value of services received from employees recorded on grant of
share options and shares by KFima.
The eligibility criteria of the ESS are as follows:
(i)
Full time employment in the Company or other company within the Group for more than one (1) year;
(ii)
A resident who is a citizen of Malaysia, non-citizen with permanent resident status or non-citizen who holds a valid
work permit in Malaysia and has entered into a full time or fixed term employment with any company within the
Group, having the designation of Manager or above;
(iii)
If the employee is working under a fixed-term contract basis, the term of contract must not be less than two (2) years
and renewal of contract must take place six (6) months before expiration; and
(iv)
Fulfill such other criteria as determined by the Options Committee from time to time.