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## Expenses arising from share based payments: 

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## 20 RESERVES ANd RETAINEd EARNINGS 

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## Nature and purpose of reserves 

## (i) Cash flow hedging reserve 

the hedging reserve is used to record gains or losses on a hedging instrument in a cash flow hedge that are recognised directly in equity, as described in policy 2 (n) (ii). the amounts are recognised in profit and loss when the associated hedged transaction affects profit and loss. 

## (ii) Foreign currency translation reserve 

the foreign currency translation reserve is used to record gains or losses on investments in foreign operations. the amounts 

are accumulated in equity and recognised in profit and loss when the foreign operation is partially disposed of or sold. 

## (iii) Share based payments reserved 

the share based payments reserve is used to recognise the fair value of share options and performance rights granted but not exercised or lapsed. amounts are transferred to share capital when vested options are exercised by the employee or performance rights are granted. 

