Note 11: Equity and Reserves (a) Contributed Equity 2024 2023 US$m US$m Ordinary shares issued and fully paid 5,062 5,022 Share buy-back reserve (4,505) (4,505) Total contributed equity 557 517 Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds. Where the Group reacquires its own shares, those shares are cancelled. No gain or loss is recognised in the statement of comprehensive income and the consideration paid to acquire the shares, including transaction costs net of income taxes is recognised directly as a reduction in equity. 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. Share buy-backs were undertaken at higher prices than the original subscription prices which reduced the historical balance for ordinary share contributed equity to nil. The share buy-back reserve was created to reflect the excess value of shares bought over the original amount of subscribed capital. Information relating to changes in contributed equity is set out in Note 9. (b) Movement in Reserves Share-based payments reserve (i) Foreign currency translation reserve (FCTR) (ii) Hedge reserve (iii) Other reserves (iv) Total US$m 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 Opening balance 682 544 (98) (81) 120 134 (56) (7) 648 590 Share-based payment expense, net of tax 169 138 — — — — — — 169 138 Exchange differences on translation of foreign operations — — (15) (17) — — — — (15) (17) Change in fair value of investments (FVOCI) — — — — — — 3 (42) 3 (42) Reclassification to profit or loss — — — — (11) (14) — — (11) (14) Acquisition of CSL Vifor — — — — — — — (7) — (7) Closing balance 851 682 (113) (98) 109 120 (53) (56) 794 648 Nature and purpose of reserves i. Share-based payments reserve The share-based payments reserve is used to recognise the fair value of awards issued to employees. ii. Foreign currency translation reserve (FCTR) 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 or loss is translated at average exchange rates. All resulting exchange differences are recognised in OCI and in the FCTR in equity. iii. Hedge reserve The hedge reserve recognises the effective portion of gains and losses on derivatives that are designated and qualify as hedges. Amounts are subsequently reclassified into the profit or loss as appropriate. iv. Other reserves The Group has elected to recognise changes in the fair value of the investments in publicly traded securities through OCI (excluding dividend income) (Note 10(e)). These changes are accumulated within the other reserves. The Group transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised (or triggered by a change of control). 132 Notes to the Financial Statements Limited Annual Report 2023/24
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