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## Nature and purpose of reserves 

Foreign currency translation reserve. Exchange differences which arise on translation of the foreign controlled entity are taken to the foreign currency translation reserve (refer Note 1(c)(iii)). 

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The above amounts represent the balance of the franking account as at the end of the financial period, adjusted for: 

• franking credits that will arise from the payment of the current tax liability; and, 

The amount recorded above as the franking credit amount is based on the amount of Australian income tax paid or to be paid in respect of the liability for income tax at the balance date. 

