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## 23. RETAINED EARNINGS AND RESERVES 

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## (b) Other reserves 

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(i) Nature and purpose of reserves 

## Asset revaluation reserve 

The asset revaluation reserve is used to record increments and decrements in the fair value of land and buildings to the extent that they offset one another� The reserve can only be used to pay dividends in limited circumstances� 

## Capital profits reserve 

The capital profits reserve is used to accumulate realised capital profits� The reserve can be used to pay dividends� 

## Cash flow hedge reserve 

The cash flow hedge reserve is used to record the portion of movements in fair value of a hedging instrument in a cash flow hedge that is recognised in other comprehensive income� 

## Employee equity benefits reserve 

The employee equity benefits reserve is used to record the value of equity benefits provided to employees and Directors as part of their remuneration� Refer to note 27 for further details of these plans� 

