| SA rand | US dollar | |||||
|---|---|---|---|---|---|---|
| 2009 | 2010 | Figures in million | 2010 | 2009 | ||
26 | Other reserves | |||||
| 78 | (49) | Foreign exchange translation reserve (a) | (86) | (111) | ||
| 8 | 4 | Fair value movement of available-for-sale financial assets (b) | 4 | 4 | ||
| 277 | 277 | Equity component of convertible bond (c) | 41 | 41 | ||
| (381) | (381) | Acquisition of non-controlling interest in subsidiary (d) | (57) | (57) | ||
| 388 | 536 | Share-based payments (e) | 75 | 55 | ||
| – | (98) | Repurchase of equity interest (f) | (13) | – | ||
| (31) | (31) | Other | (4) | (4) | ||
| 339 | 258 | Total other reserves | (40) | (72) | ||
| The different categories of other reserves are made up as follows: | ||||||
| Foreign exchange translation reserve | ||||||
| 575 | 78 | Balance at beginning of year | (111) | (216) | ||
| (418) | 6 | Realised portion reclassified through profit or loss | 1 | (53) | ||
| (79) | (133) | Current year's foreign exchange movement | 24 | 158 | ||
| 78 | (49) | Balance at end of year | (86) | (111) | ||
| Fair value movement of available-for-sale financial assets | ||||||
| (39) | 8 | Balance at beginning of year | 4 | (2) | ||
| 115 | 3 | Impairment recognised in profit or loss | – | 12 | ||
| (35) | – | Tax on impairment | – | (3) | ||
| (14) | (11) | Realised portion reclassified through profit or loss | (1) | (2) | ||
| 1 | 1 | Tax on realised portion | – | – | ||
| (30) | 2 | Fair value movement – unrealised | – | (3) | ||
| 7 | – | Tax on fair value movement | – | 1 | ||
| 3 | 1 | Translation | 1 | 1 | ||
| 8 | 4 | Balance at end of year | 4 | 4 | ||
| Equity component of convertible bond | ||||||
| 277 | 277 | Balance at beginning/end of year | 41 | 41 | ||
| Acquisition of non-controlling interest in subsidiary | ||||||
| (381) | (381) | Balance at beginning/end of year | (57) | (57) | ||
| Share-based payments | ||||||
| 275 | 388 | Balance at beginning of year | 55 | 42 | ||
| 113 | 148 | Share-based payments expensed | 20 | 13 | ||
| 388 | 536 | Balance at end of year | 75 | 55 | ||
| Repurchase of equity interest | ||||||
| – | (98) | Acquired equity interest during the year | (13) | – | ||
| – | (98) | Balance at end of year | (13) | – | ||
| Other reserves | ||||||
| (31) | (31) | Balance at beginning/end of year | (4) | (4) | ||
| (a) | The balance of the foreign exchange translation reserve movement represents the cumulative translation effect of the group’s off-shore operations. The US dollar amount includes the translation effect from rand to US dollar. | |||||
| The realised portion reclassified through profit or loss relates to the sale of Big Bell operations in Australia and the liquidation of Harmony Gold Peru SA. and Harmony Precious Metal Services SAS. Refer to note 7 for further detail. | ||||||
| (b) | The balance of the fair value movement reserve represents the movement in the fair value of the available-for-sale financial assets. For details on the movement, refer to note 20. For details regarding the realised portion reclassified to profit or loss refer to note 10(b). | |||||
| (c) | On 24 May 2004, the group issued a convertible bond. The amount representing the value of the equity conversion component is included in other reserves, net of deferred income taxes. The equity conversion component is determined on the issue of the bonds and is not changed in subsequent periods. | |||||
| (d) | On 15 March 2004, Harmony announced that it had made an off market cash offer to acquire all the ordinary shares, listed and unlisted options of Abelle, held by non-controlling interests. The excess of the purchase price of R579 million (US$86.5 million) (A$123 million) over the carrying amount of the non-controlling interest acquired, amounting to R381 million (US$55 million), has been accounted for under other reserves. | |||||
| (e) | The group issues equity-settled instruments to certain qualifying employees under an Employee Share Option Scheme to purchase shares in the company's authorised but unissued ordinary shares. Equity share-based payments are measured at the fair value of the equity instruments at the date of the grant. Share-based payments are expensed over the vesting period, based on the group's estimate of the shares that are expected to eventually vest. During the 2010 financial year, a share-based payment expense of R148 million (US$19.5 million) (2009: R113 million (US$12.6 million)) was charged to the income statement. (Refer to note 34 for more detail). | |||||
| (f) | On 19 March 2010, Harmony Gold Mining Company Limited concluded an agreement with AVRD, for the purchase of its 26% share of the mining titles of the Doornkop South Reef. From an accounting perspective, the sale of the 26% share in the mining titles was never recognised and accounted for as an in-substance call option by AVRD over the 26% mineral right. This was due to AVRD not being exposed to any losses relating to the Doornkop mineral right, and entitled at any point in time to repay the Nedbank loan guaranteed by Harmony – thereby becoming unconditionally entitled to the ‘upside’ in the mineral right. The agreement to purchase AVRD’s 26% interest during the 2010 financial year is therefore considered to be a repurchase of the option (equity interest). The difference between the value of the shares issued of R152 million (US$20.5 million) (see note 25), the liability to African Vanguard Resources (Proprietary) Limited (see note 29(a)) and transaction costs, have been taken directly to equity. | |||||