NOTES TO THE FINANCIAL STATEMENTS
FOR THE FInAncIAL yEAR EnDED 30 JunE 2016
24
FOREIGN CURRENCY TRANSLATION RESERVE
The foreign currency translation reserve represents 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.
Group
Company
2016
2015
2016
2015
$’000
$’000
$’000
$’000
At 1 July
–
–
–
–
Foreign currency translation
1
–
–
–
At 30 June
1
–
–
–
25
MERGER RESERVE
Merger reserve represents the differences between the consideration paid and the share capital of subsidiaries
when entities under common control are accounted for applying the pooling of interest method.
26
CONTINGENT LIABILITIES
As at 30 June 2016, the Company has provided corporate guarantees of $25,252,000 (2015: $25,030,000) to
banks for bank borrowings of $3,421,000 (2015: $2,328,000) taken by its subsidiaries.
Management has determined that the fair value of the financial guarantees provided by the Company is not
material and is therefore not recognised in the Company’s financial statements. No material losses under the
guarantees are expected as management is of the requirements to reimburse are remote.
27
DIVIDEND
Company
2016
2015
$’000
$’000
Dividend paid:
Final exempt (one-tier) dividend of 1.15 cents (2014: 1.00 cents) per share
paid in respect of current financial year
1,644
1,176
The Directors have proposed a final tax-exempt (one-tier) dividend of 0.75 cents per ordinary share amounting
to $2.1 million based on 284,665,956 ordinary shares. These financial statements do not reflect this dividend
payable which will be accounted for in the shareholders’ equity as an appropriation of accumulated profits in
the year ending 30 June 2017.
101
ISOTEAM LTD.
ANNUAL REPORT 2016
