Lendlease Annual Report 2022

172 Lendlease Annual Report 2022 Notes to Consolidated Financial Statements continued 36. Reserves Hedging Reserve $m Foreign Currency Translation Reserve $m Non Controlling Interest Acquisition Reserve $m Other Reserve $m Equity Compensation Reserve $m Total Reserve $m Balance as at 1 July 2020 (96) 38 (98) 106 115 65 Net investment hedge - 12 - - - 12 Effect of foreign exchange movements - (108) 6 - - (102) Effective cash flow hedges 15 - - - - 15 Total comprehensive income 15 (96) 6 - - (75) Fair value movement on allocation and vesting of securities - - - - 16 16 Transfer as a result of asset disposal 1 2 (5) - - - (3) Total other movements through reserves 2 (5) - - 16 13 Balance at 30 June 2021 (79) (63) (92) 106 131 3 Balance at 1 July 2021 (79) (63) (92) 106 131 3 Net investment hedge - (16) - - - (16) Effect of foreign exchange movements - 67 (5) - - 62 Effective cash flow hedges 136 - - - - 136 Total comprehensive income 136 51 (5) - - 182 Fair value movement on allocation and vesting of securities - - - - 23 23 Transfer as a result of asset disposal 1 (9) (15) - - - (24) Total other movements through reserves (9) (15) - - 23 (1) Balance at 30 June 2022 48 (27) (97) 106 154 184 1. These movements in reserves were transferred to profit and loss in the year. 37. Impact of New and Revised Accounting Standards New Accounting Standards and Interpretations Not Yet Adopted Accounting Standard Requirement Impact on Financial Statements AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture and consequential amendments. AASB 2014-10 amends AASB 10 and AASB 128 to clarify the requirements for recording the sale or contribution of assets between an investor and its associate or joint venture. The amendment becomes mandatory for the June 2026 financial year and will be applied prospectively. Based on preliminary analysis performed, the amendments are not expected to have a material impact on the Group. 38. Other Significant Accounting Policies 38.a. Foreign Currency Translation Functional and Presentation Currency Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The consolidated financial report is presented in Australian dollars, which is the Company’s functional and presentation currency. Transactions and Balances Foreign currency transactions are translated into Australian dollars using the exchange rate on the date of the transactions. Assets and liabilities denominated in foreign currencies are translated to Australian dollars at balance date. Foreign exchange gains or losses are recognised in the Income Statement for monetary assets and liabilities such as receivables and payables, except for qualifying cash flow hedges and qualifying net investment hedges in foreign operations, which are recognised in other comprehensive income. Refer to Note 25 ‘Hedging’ for further detail. Section F. Other Notes continued