Page 81 - Inegrated Annual Report 2020-Eng

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | 31 DECEMBER 2020

17. RESERVES

Unrealised
Asset Foreign, loss on
Legal replacement Regulatory exchange financial assets
reserve reserve reserve reserve at FVTOCI Total
AED’000 AED’000 AED’000 AED’000 AED’000 AED’000
At 1 January 2019 125,000 595,000 20,000 (4,446) (53,445) 682,109
Change in fair value of financial assets at fair
value through other comprehensive income - - - - (14,976) (14,976)
(note 8)
Cumulative translation adjustment on foreign
operations - - - 5,592 - 5,592

At 31 December 2019 125,000 595,000 20,000 1,146 (68,421) 672,725
At 1 January 2020 125,000 595,000 20,000 1,146 (68,421) 672,725
Change in fair value of financial assets at fair
value through other comprehensive income - - - - (5,530) (5,530)
(note 8)
Reclassification of accumulated losses on
disposal of investment in financial assets carried
at fair value through other comprehensive - - - - 73,951 73,951
income to retained earnings
Cumulative translation adjustment on foreign - - - 2,443 -
operations 2,443
At 31 December 2020 125,000 595,000 20,000 3,589 - 743,589

Legal reserve

In accordance with UAE Federal Law No. (2) of 2015, 10% of the annual profit of the Company is transferred to a
non-distributable legal reserve. Transfers to this reserve are required to be made until such time as it equals 50%
of the paid up share capital of the Company. There were no transfers made during the year as reserves equal to
50% of the paid up share capital.
Asset replacement reserve

This reserve represents an appropriation from the annual profit, at the discretion of the Board of Directors with
the approval of the General Assembly, to facilitate the financing of dredgers and support craft and other major
items of property, plant and equipment. No appropriation was made from the current or prior year profit.

Regulatory reserve
Transfers to and from the regulatory reserve are made at the discretion of the Board of Directors with the
approval of the General Assembly and in accordance with the powers granted by the Articles of Association. This
reserve may be used for such purposes as the Board of Directors deem necessary for the Company’s activities.
No appropriation was made from the current or prior year profit.

18. PROVISION FOR EMPLOYEES’ END OF SERVICE BENEFITS

2020 2019
AED’000 AED’000
At 1 January 118,419 97,641
Charge for the year 17,050 22,430
Paid during the year (3,662) (4,842)
Reclassified to accrued expense - 3,190

At 31 December 131,807 118,419

During the year, the Group has contributed a total amount of AED 4,239 thousand (2019: AED 3,231 thousand)
towards the Abu Dhabi Pension and Retirement Benefits Fund.

2020 Integrated Annual Report 81