G. EQUITY AND RESERVES
G1 SHARE CAPITAL AND TREASURY SHARES
G1.1 Accounting policy
 

Stated capital: Ordinary shares are classified as equity. External costs directly attributable to the issue of new shares are shown as a deduction from equity.

Treasury shares: Company shares held by the Hyprop share scheme that have not yet vested are classified as treasury shares on consolidation and deducted from equity. These shares are carried at cost and deducted from equity.

Any subsequent gain or loss on the sale or cancellation of the company’s own equity instruments is recognised directly in equity.

Distributions and unrealised losses on own shares are eliminated from group profit or loss for the year.

G1.2 Carrying value
 
  GROUP     COMPANY  
  30 June 2019
R000
30 June 2018
R000
    30 June 2019
R000
30 June 2018
R000
 
Stated capital              
Ordinary shares 8 462 327 8 462 327     8 462 327 8 462 327  
   Balance at the beginning of the year 8 462 327 7 683 651     8 462 327 7 683 651  
   Issued during the year 778 676     778 676  
Treasury shares (54 932) (43 423)      
   Balance at the beginning of the year (43 423) (35 435)      
   Purchased during the year(1) (17 569) (18 162)      
   Vested during the year 6 060 10 174      
Balance at the end of the year 8 407 395 8 418 904     8 462 327 8 462 327  
G1.3 Number of shares
 
  GROUP     COMPANY  
  30 June 2019
R000
30 June 2018
R000
    30 June 2019
R000
30 June 2018
R000
 
Authorised              
500 000 000 no par value ordinary shares (2018: 500 000 000)              
Issued and fully paid up shares              
Ordinary shares 255 894 516 255 894 516     255 894 516 255 894 516  
   Balance at the beginning of the year 255 894 516 248 441 278     255 894 516 248 441 278  
   Issued during the year 7 453 238     7 453 238  
Treasury shares (611 519) (446 260)      
   Balance at the beginning of the year (446 260) (387 246)      
   Purchased during the year(1) (252 000) (155 000)      
   Vested during the year 86 741 95 986      
Net number of shares in issue at the end of the year 255 282 997 255 448 256     255 894 516 255 894 516  
(1) Purchased (at an average price of R67,72 per share) during the year by Hyprop share scheme and held as treasury shares to hedge Hypropís obligation to deliver Hyprop shares to employees under the CUP.
G2 RESERVES
G2.1 Accounting policy
 
Non-distributable reserves The non-distributable reserves relate to items that are not distributable to shareholders, such as fair value adjustments on the revaluation of investment property and derivatives, any impairment adjustments, share-based payment transactions, profit or loss on sale of assets, the straight-line lease income adjustment, deferred taxation and reserves held by the non-controlling shareholders.
Currency translation reserve

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated to the group’s presentation currency (Rand) at the exchange rates at the reporting date. The income and expenses of foreign operations are translated to Rand at the dates of the transactions (an average rate for the year is used).

Foreign currency translation differences are recognised in other comprehensive income (OCI) and accumulated in the currency translation reserve, except to the extent that the translation difference is allocated to non-controlling interest (NCI).

G2.2 Carrying value
  The following table reflects the composition of non-distributable reserves:
 
  GROUP     COMPANY  
  30 June 2019
R000
30 June 2018
R000
    30 June 2019
R000
30 June 2018
R000
 
Revaluation reserves 16 322 939 16 953 415     16 025 588 16 403 072  
   Investment property 16 051 918 16 432 551     15 646 280 15 888 242  
   Listed property securities 616 759 616 759     616 759 616 759  
   Financial asset (161 321) (76 094)     (161 321) (76 094)  
   Other investment (12 705)     (12 705)  
   Loans receivable (105 809)      
   Derivative instruments (65 903) (19 801)     (63 425) (25 835)  
Derecognition of financial guarantees 197 670 11 984     492 899 274 121  
Realised gains/(losses) on disposals 331 551 328 725     469 239 466 414  
   Investment property 171 209 168 383     171 209 168 384  
   Listed property securities 276 630 276 630     276 630 276 630  
   Subsidiaries (131 010) (131 010)      
   Associate 17 431 17 431     21 400 21 400  
   Shares (2 709) (2 709)      
Non-distributable reserves of associate 125 344 125 344     121 374 121 374  
Impairment of goodwill (577 847) (577 847)     25 400 25 400  
Gain on bargain purchase (African Land) 191 235 191 235      
Impairment of loans receivable (1 542 545) (191 818)     (1 512 106) (26 716)  
Impairment of other assets (29 964)     (510 818) (494 524)  
Balance at the end of the year 15 018 383 16 841 038     15 111 577 16 769 141