CSL Ltd Annual Report 2020

CSL Limited Annual Report 2020 124 Notes to the Financial Statements Note 12: Equity and Reserves (a) Contributed Equity 2020 US$m 2019 US$m Ordinary shares issued and fully paid – – Share buy-back reserve (4,561.0) (4,603.0) Total contributed equity (4,561.0) (4,603.0) Ordinary shares receive dividends as declared and, in the event of winding up the company, participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held. Ordinary shares entitle their holder to one vote, either in person or proxy, at a meeting of the company. Due to share buy-backs being undertaken at higher prices than the original subscription prices, the balance for ordinary share contributed equity has been reduced to nil, and a reserve created to reflect the excess value of shares bought over the original amount of subscribed capital. Information relating to employee performance option plans and GESP, including details of shares issued under the scheme, is set out in Note 5. (b) Reserves Movement in reserves Share-based payments reserve (i) US$m Foreign currency translation reserve (ii) US$m Total US$m 2020 2019 2020 2019 2020 2019 Opening balance 247.7 195.1 (5.7) 29.1 242.0 224.2 Share-based payments expense 74.3 52.0 74.3 52.0 Deferred tax on share-based payments 6.8 0.6 6.8 0.6 Net exchange gains/(losses) on translation of foreign subsidiaries, net of hedge 13.3 (34.7) 13.3 (34.7) Closing balance 328.7 247.7 7.6 (5.6) 336.3 242.0 Nature and purpose of reserves i. Share-based payments reserve The share-based payments reserve is used to recognise the fair value of options, performance rights and GESP rights issued to employees. ii. Foreign currency translation reserve Where the functional currency of a subsidiary is not US dollars, its assets and liabilities are translated on consolidation to US dollars using the exchange rates prevailing at the reporting date, and its profit and loss is translated at average exchange rates. All resulting exchange differences are recognised in other comprehensive income and in the foreign currency translation reserve in equity. Exchange differences arising from borrowings designated as hedges of net investments in foreign entities are also included in this reserve.