NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 December 2021 42. RESERVES (continued) (b) The Company (continued) Share premium Share option reserve Exchange fluctuation reserve Accumulated losses Investment reserve (non-recycling) Other reserve Total US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 As at 1 January 2020 2,042,526 25,801 (6,265) (311,833) 8,811 29,218 1,788,258 Loss for the year – – – (54,733) – – (54,733) Change in fair value of financial assets at fair value through other comprehensive income – – – – 8,495 – 8,495 Share of other comprehensive income of joint ventures – – 17,938 – – – 17,938 Total comprehensive loss for the year – – 17,938 (54,733) 8,495 – (28,300) Profit attributable to holders of perpetual capital securities – – – (4,125) – – (4,125) Redemption of perpetual capital securities – – – (1,221) – – (1,221) Share repurchase and cancellation (893) – – – – – (893) Issue of shares upon exercise of share options 22,502 (21,368) – – – – 1,134 Transfer of share option reserve upon the forfeiture of share options – (4) – 4 – – – Equity-settled share option arrangement – 14,082 – – – – 14,082 As at 31 December 2020 2,064,135 18,511 11,673 (371,908) 17,306 29,218 1,768,935 43. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES The Group’s principal financial instruments comprise bank and other borrowings, financial liabilities included in trade and other payables, cash and bank balances, trade receivables, financial assets included in prepayments, other receivables and other assets, financial assets at fair value through profit or loss, financial assets at fair value through other comprehensive income, and financial assets included in other non-current assets. The main purpose of these financial instruments is to raise finance for the Group’s operations. The Group has various financial assets such as trade receivables, cash and short-term deposits, which arose directly from its operations. The main risks faced by the Group are interest rate risk, foreign currency risk, credit risk, liquidity risk and equity price risk. The Group does not hold or issue derivative financial instruments either for hedging or for trading purposes. The directors reviews and agrees policies for managing each of the risks which are summarised below: Interest rate risk The Group’s exposure to the risk of changes in interest rates relates primarily to its interest-bearing bank and other borrowings. The Group does not use derivative financial instruments to manage its interest rate risk. The interest rates and terms of repayments of the borrowings are disclosed in note 25. E S R C A Y M A N L I M I T E D A N N U A L R E P O R T 2 0 2 1 227
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