344 / 396
33. Share capital and share premium (cont’d.)
On 31 January 2017, pursuant to Section 74 of Companies Act, 2016, the concepts “par value” and “authorised share capital” were
abolished and on that date, the shares of the Company ceased to have a par value.
During the financial year, the Company increased its issued and paid-up ordinary share capital from RM1,509,238,000 to
RM2,515,438,000 by way of the issuance of 559,000,000 ordinary shares at an issue price of RM1.80 per ordinary share.
^ In accordance with the transitional provision set out in Section 618 of the Companies Act, 2016 the credit standing in the share
premium amounting RM2,181,241,000 was transferred to the share capital account. There is no impact on the number of shares
in issue or the relative entitlement of any of the members as a result of this transition.
34. Retained earnings and other reserves
(a) Retained earnings
Under the single-tier tax systemwhich came into effect from the year of assessment 2008, companies are not required to have
tax credits under Section 108 of the Income Tax Act, 1967 for dividend payment purposes. Dividends paid under this system are
tax exempt in the hands of shareholders.
(b) Other reserves
Remeasurement
losson
employee
benefits liability
RM’000
Cash flow
hedge
reserve
RM’000
(Restated)
Available-
for-sale
reserve
RM’000
Total
RM’000
(Restated)
Group
At 1 January 2017 (as previously stated)
–
(441,994)
224,440
(217,554)
Prior year adjustment (Note 42)
–
428,384
–
428,384
At 1 January 2017 (restated)
–
(13,610)
224,440
210,830
Net change in fair value
(691)
(400,128)
(55,087)
(455,906)
Amounts transferred to income statements
–
148,901
–
148,901
Share of other comprehensive income of an associate
–
28,567
–
28,567
At 31 December 2017
(691)
(236,270)
169,353
(67,608)
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017
[ ]
AirAsia Berhad
REPORTS AND FINANCIAL STATEMENTS
330