21. Analysis of Equity
Group and Company
Share premium
The share premium account comprises the excess of monies received in respect of share capital over the nominal value of shares issued.
Capital reserves
This consists of reserves arising on consolidation and the capital redemption reserve.
Reserves arising on consolidation relate to the acquisition of a subsidiary. At 31 December 2018 the reserve balance stands at €0.1 million. The balance is unchanged from, 1 January 2018 and 1 January 2019.
The capital redemption reserve represents the nominal value of share capital repurchased. During the year €0.2 million was transferred from retained earnings representing the nominal value of shares cancelled. At 31 December 2019 the reserve balance stands at €7.4 million (2018: €7.2 million).
Share options reserve
The share options reserve represents the cumulative charge to the Consolidated Income Statement of share options issued which are not yet exercised and issued as shares.
Hedging reserve
The hedging reserve represents the cumulative amount of gains and losses on hedging instruments arising from effective cash flow hedges. The cumulative deferred gain or loss on the hedging instrument is recognised in the Income Statement only when the hedged transaction impacts the profit or loss, or is included as a basis adjustment to the non-financial hedged item, consistent with the applicable accounting policy.
Translation reserve
Exchange differences relating to the translation of the net assets and results of the Group’s foreign currency denominated subsidiaries, from their functional currency into the Group’s presentational currency, being Euro, are recognised directly in the translation reserve.