191 SWIRE PROPERTIES ANNUAL REPORT 2024 34. Reserves (continued) Revenue reserve HK$M Merger reserve HK$M Property revaluation reserve HK$M Cash flow hedge reserve HK$M Translation reserve HK$M Total HK$M At 1st January 2023 280,008 (1,108) 2,007 9 (2,154) 278,762 Profit for the year 2,637 – – – – 2,637 Other comprehensive income Revaluation of properties previously occupied by the Group – gains recognised during the year – – 46 – – 46 – deferred tax – – (11) – – (11) Defined benefit plans – remeasurement losses recognised during the year (56) – – – – (56) – deferred tax 9 – – – – 9 Cash flow hedges – losses recognised during the year – – – (38) – (38) – transferred to net finance charges – – – (41) – (41) – deferred tax – – – 13 – 13 Share of other comprehensive income of joint venture and associated companies – recognised during the year – – – – (103) (103) – reclassified to profit or loss on deemed disposal – – – – 228 228 Net translation differences recognised during the year – – – – (904) (904) Total comprehensive income for the year 2,590 – 35 (66) (779) 1,780 2022 second interim dividend (3,978) – – – – (3,978) 2023 first interim dividend (note 13) (1,931) – – – – (1,931) At 31st December 2023 276,689 (1,108) 2,042 (57) (2,933) 274,633 (a) The Group’s revenue reserve includes retained earnings from joint venture companies amounting to HK$10,647 million (2023: HK$9,999 million) and accumulated losses from associated companies amounting to HK$359 million (2023: HK$426 million). (b) The Group’s revenue reserve includes HK$4,390 million (2023: HK$4,212 million) representing the declared second interim dividend for the year (note 13). (c) The Group adopted merger accounting in accordance with Accounting Guideline 5, Merger Accounting for Common Control Combinations (issued by the HKICPA) to account for the acquisition of all the shares of Swire Properties US Inc and Swire Properties One LLC in January 2010. These companies were wholly-owned subsidiaries of the immediate holding company of Swire Properties Limited. (d) At 31st December 2024, the Group’s cash flow hedge reserve includes HK$1 million (net of tax) (2023: HK$38 million) relating to the currency basis element of the Group’s derivatives which is recognised separately as a cost of hedging.