Boskalis Annual Report 2020

117

117

Legal reserves

CURRENCY TRANSLATION RESERVE

HEDGING RESERVE

REVALUATION RESERVE

OTHER LEGAL

TOTAL OTHER RESERVES

RESERVES OTHER RESERVES

Note

[23.6.1]

[23.6.2]

[23.6.3]

[23.6.4]

[23.6.5]

- 11,192

101,996

231,909

132,781

- 25,762

429,732

Balance as at 1 January 2019

Defined benefit plan actuarial gains/losses (-) and asset limitation, after income tax Foreign currency translation differences for foreign operations, after income tax Currency translation differences from joint ventures and associates, after tax Effective cash flow hedges, after income tax Change in fair value of cash flow hedges from joint ventures and associates, after tax Realization through sale of underlying asset Reclassification relating to settlement of pension plans Reclassification of foreign currency differences to statement of profit or loss Reclassification of hedge reserve to statement of profit or loss

-

-

-

-

- 5,970

- 5,970

-

-

22,183

-

-

22,183

-

- -

1,326

- -

- -

1,326 3,217

3,217

-

- 11,501

-

- -

- -

- -

- 11,501 - 21,392

-

- 21,392

-

-

-

-

11,249

11,249

-

-

- 42,252

-

-

- 42,252

18,955

- -

- -

-

- -

18,955 - 1,430 - 25,615

Movement in legal reserve

-

- 1,430 - 1,430

10,671

- 21,392

- 18,743

5,279

Total movements

- 521

80,604

213,166

131,351

- 20,483

404,117

Balance as at 31 December 2019

Under Dutch law the legal reserves are not available for dividend distribution to shareholders.

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 nil (2019: EUR 1.0 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 29.2. 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. In 2020 an amount of EUR 1.4 million was recognized relating to the revaluation of Horizon prior to the business combination. In 2019 an amount of EUR 21.4 million was realized through the sale of the Group’s interest in the partnership Saam Smit Towage (EUR 4.4 million) and the sale of the Group’s interest in the partnership Kotug Smit Towage (EUR 17.0 million). 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. 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 19.4 million as per 31 December 2020 (31 December 2019: negative amount of EUR 43.2 million); a change of EUR 23.8 million in 2020.

ANNUAL REPORT 2020 – BOSKALIS A NUAL REPORT 2020 -- BOSKALIS