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ANNUAL REPORT 2013
PTT GLOBAL CHEMICAL PUBLIC COMPANY LIMITED
PTT Global Chemical Public Company Limited and its Subsidiaries Notes to the financial statements 28
Additional paid-in capital and reserves Share premium Section 51 of the Public Companies Act B.E. 2535 requires companies to set aside share subscription monies received in excess of the par value of the shares issued to a reserve account (“share premium”). Share premium is not available for dividend distribution. Surplus on business combination Surplus on business combination was mainly the result of the increase in the net value of assets of PTT Aromatics and Refining Public Company Limited and PTT Phenol Company Limited which were re-measured and recognised at fair value at the amalgamation date of PTT Chemical Public Company Limited and PTT Aromatics and Refining Public Company Limited. Legal reserve Section 116 of the Public Companies Act B.E. 2535 requires that a company shall allocate not less than 5% of its annual net profit, less any accumulated losses brought forward, to a reserve account (“legal reserve”), until this account reaches an amount not less than 10% of the registered authorised capital. The legal reserve is not available for dividend distribution. Other components of equity Currency translation differences The currency translation differences account within equity comprises all foreign currency differences arising from the translation of the financial statements of foreign operations, as well as from the translation of liabilities that hedge the Company’s net investment in a foreign operation. Cash flow hedges The cash flow hedges account within equity comprises the cumulative net change in the fair value of cash flow hedges related to hedged transactions that have not yet occurred for effective portion.