BIMB Integrated Annual Report 2019

26 RESERVES (CONTINUED) 26.2 Other reserves (continued) Capital reserve The capital reserve arose out of the issuance of bonus issue in a subsidiary of RM6,863,000. Warrant reserve The warrant reserve arose from the Company’s issuance of 426,715,958 free detachable warrants on 11 December 2013. FVOCI reserve The FVOCI reserve comprises the cumulative net change in the fair value of financial assets at FVOCI until the financial assets are derecognised. Translation reserve The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations and offshore banking operations – Federal Territory of Labuan. Regulatory reserve The regulatory reserve represents the Bank Islam’s compliance with BNM’s Guideline on Financial Reporting for Islamic Banking Institution to maintain, in aggregate, loss allowance for non-credit-impaired exposures and regulatory reserve of no less than 1% of total credit exposures, net of loss allowance for credit-impaired exposures. Long Term Incentive Plan (“LTIP”) reserve The LTIP reserve comprises the cumulative value of employee services received for the issue of Restricted Share Plan and Performance Share Plan in Takaful Malaysia. When the LTIP is exercised, the amount from the LTIP reserve is transferred to share capital. When the LTIP expires, the amount from the LTIP reserve is transferred to retained earnings. LTIP is disclosed in Note 27. 26.3 Acquisition reserve The acquisition reserve is the difference between the consideration paid and the 49% equity interest in Bank Islam Malaysia Berhad acquired in December 2013. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 (CONTINUED) 246 Integrated Annual Report 2019 Group Overview Sustaining The Group Management Discussion & Analysis Group Governance