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 Hyprop Share Scheme that have not yet vested are classified as treasury shares on consolidation. 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
June 2020 
R'000 		 June 2019 
R'000 		 June 2020
R'000		 June 2019
R'000
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  8 462 327  8 462 327 8 462 327
  Issued during the year –   –   – –
Treasury shares (75 296) (54 932) – –
  Balance at the beginning of the year (54 932) (43 423) – –
  Purchase during the year (1) (26 019) (17 569) – –
  Vested during the year 5 655  6 060  – –
Balance at the end of the year 8 387 031  8 407 395  8 462 327 8 462 327
   

G1.3

Number of shares
 
Group Company
June 2020 
# of shares 		 June 2019 
# of shares 		 June 2020
# of shares		 June 2019
# of shares
Authorised
500 000 000 no par value ordinary shares (2019: 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  255 894 516  255 894 516 255 894 516
  Issued during the year –  –  – –
Treasury shares (1 649 191) (611 519) – –
  Balance at the beginning of the year (611 519) (446 260) – –
  Purchased during the year (1) (1 100 400) (252 000) – –
  Vested during the year 62 728  86 741  – –
Net number of shares in issue at the end of the year 254 245 325  255 282 997  255 894 516 255 894 516
(1) Purchased (at an average price of R23.58 per share (2019: R67.72)) during the year by Hyprop Share Scheme and held as treasury shares to hedge Hyprop's 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 or accumulated expected credit losses, share-based payment transactions, profit or loss on sale of assets, the straight-line lease income adjustment, deferred taxation and reserves attributable to 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
June 2020 
R'000 		 June 2019 
R'000 		 June 2020 
R'000 		 June 2019 
R'000 
Revaluation reserves 11 908 436  16 322 939  11 984 199  16 025 588 
  Investment property 11 605 924  16 051 918  11 499 472  15 646 280 
  Listed property securities 616 759  616 759  616 759  616 759
  Financial asset 153 207  (161 321) 153 207  (161 321)
  Other investment (57 877) (12 705) (57 877) (12 705)
  Loans receivable (105 809) (105 809) –  – 
  Financial guarantees (16 665) –  54 497  – 
  Derivative instruments (287 103) (65 903) (281 859) (63 425)
Derecognition of financial guarantees (1) 197 670  197 670  492 899  492 899 
Realised gains/(losses) on disposals 331 551  331 551  469 239  469 239 
  Investment property 171 209  171 209  171 209  171 209 
  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 (1 832 521) (1 542 545) (1 556 724) (1 512 106)
Impairment of other assets (29 964) (29 964) (908 838) (510 818)
Balance at the end of the year 10 313 904  15 018 383  10 627 549  15 111 577 
(1) The derecognition of financial guarantees in prior years was accounted for through profit and loss. Subsequently the amounts in retained earnings were transferred to a non-distributable reserve. There have been no movements in the current year.