Section 8 UEM Edgenta Berhad FINANCIAL STATEMENTS 342 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 31. OTHER RESERVES Group Statutory reserve RM’000 (Note a) Foreign currency translation reserve RM’000 (Note b) Other reserve RM’000 (Note c) Total RM’000 At 1 January 2022 - (9,279) 9,163 (116) Foreign currency translation - 23,182 - 23,182 At 31 December 2022 - 13,903 9,163 23,066 Foreign currency translation - 40,247 - 40,247 Acquisition of a subsidiary 294 - - 294 At 31 December 2023 294 54,150 9,163 63,607 (a) Statutory reserve This reserve is maintained by the subsidiaries in Kingdom of Saudi Arabia. In accordance with the Regulation for Companies in the Kingdom of Saudi Arabia, companies are required to transfer 10% of the net income for the year to a statutory reserve until it equals to 50% of its share capital. The reserve is not available for distribution to the shareholders of the companies. (b) Foreign currency translation reserve The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign operations whose functional currencies are different from that of the Group’s presentation currency. It is also used to record the exchange differences arising from monetary items which form part of the Group’s net investment in foreign operations, where the monetary item is denominated in either the functional currency of the reporting entity or the foreign operation. (c) Other reserve Other reserve arose from the redemption of redeemable preference shares in prior years by a subsidiary.
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