(a) Other reserves
Consolidated
2012
2011
$’000
$’000
Asset revaluation reserve
882,640
1,103,742
Hedging reserve
(3,713)
(7)
878,927
1,103,735
Movements:
Other reserves
Balance 1 July
1,103,735
737,844
Asset revaluation reserve
-
520,332
Income tax effect of asset revaluation
-
(153,793)
Asset revaluation reserve ‑ asset disposal
(3,985)
-
Income tax effect of asset revaluation reserve asset disposal
1,196
-
Reversal of asset revaluation reserve
(311,874)
-
Income tax effect of reversal of asset revaluation
93,562
-
Asset revaluation reserve adjustment
-
(628)
Hedge reserve ‑ foreign exchange
106
(20)
Hedge liability interest rate swap
(3,813)
-
Balance 30 June
878,927
1,103,735
Note 31
Other reserves and retained earnings
(b) Retained earnings
Movements in retained earnings were as follows:
Consolidated
2012
2011
$’000
$’000
Balance 1 July
286,969
335,963
(Loss)/profit for the year
(219,927)
(49,638)
Actuarial (losses)/gains on defined benefit plans
(5,041)
23
Transfer from reserves
3,985
628
Tax effect on defined benefit fund (note 17)
1,512
(7)
Balance 30 June
67,498
286,969
(c) Nature and purpose of
other reserves
(i) Asset revaluation reserve
The property, plant and equipment revaluation
reserve is used to record increments and
decrements on the revaluation of non current
infrastructure assets.
(ii) Hedging reserve ‑ cash flow hedges
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.
Amounts are reclassified to profit or loss when
the associated hedged transaction affects profit
or loss.
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