Boskalis Annual Report 2018

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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. An amount of EUR 1 million is included in the hedging reserve relating to discontinued hedges. This will be recognized in the income statement when the future cash flows, that were designated as hedged items, occur. 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. 23.6.3 CURRENCY TRANSLATION RESERVE (LEGAL RESERVE) The currency translation reserve comprises all accumulated currency translation differences arising from net 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 (see also note 5.2). At the acquisition date of activities (business combinations) with a functional currency other than the euro, the translation reserve of these activities is started at zero. The cumulative changes of foreign currency instruments used to hedge net investments in foreign operations are included under currency translation reserve for a negative amount of EUR 38.1 million as per 31 December 2018 (31 December 2017: negative amount of EUR 24.4 million); a change of EUR 13.7 million in 2018. 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 associates 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 2018 – BOSKALIS ANNUAL REPORT 2018 -- BOSKALIS