Notes to the Group annual financial statements | Note 6.2

6. Equity
6.2 Other reserves
 
2022 
R'000 		 2021 
R'000 
Balance at the beginning of the year    (2 732 783) (2 689 960)
Exchange differences on translation of foreign operations   1 251  (61 364)
Transactions with non-controlling interests*   (166 094) – 
Equity compensation benefit scheme shares vested   (9 954) (13 471)
Equity compensation benefit movement   30 446  27 184 
Gain arising on changes in fair value of hedging instruments (effective portion), net of tax   7 627  5 581 
Loss on hedging instrument reclassified to profit or loss, net of tax   (1 930) (753)
Balance at the end of the year   (2 871 437) (2 732 783)
Consisting of:  
Restructuring reserve   (1 843 912) (1 843 912)
Foreign currency translation reserve   34 009  32 758 
Non-distributable reserve   7 771  7 771 
Transactions with non-controlling interest reserve   (1 145 160) (979 066)
Equity compensation benefit reserve    65 330  44 838 
Cash flow hedge reserve   10 525  4 828 
(2 871 437) (2 732 783)
* On 29 June 2021, The Prepaid Company Proprietary Limited acquired the remaining 52% shareholding in Glocell Distribution Proprietary Limited.

The restructuring reserve arose as a result of the restatement of Group comparatives, as required in terms of the principles of predecessor accounting. This reserve represents the difference between the fair value of the entities under the Group's control and their respective net asset values, as at the assumed restructure date of 1 June 2006.

The non-distributable reserve arose as a result of BLT's share of share premium issued by associate companies pre-2010.

The transactions with non-controlling interest reserve relate to the excess payments over the carrying amounts arising on transactions with non-controlling shareholders as these are treated as equity participants.

The cash flow hedge reserve arose in the prior year. The Prepaid Company (TPC) entered into a ZAR-denominated floating rate debt instrument and is exposed to variability in interest payments as a result of interest rate fluctuations. To hedge this interest rate risk, TPC took out a pay-fixed, receive-floating interest rate swap instrument. The type of hedging relationship is a cash flow hedge. Refer to note 3.8 for more details.

On 29 June 2021, The Prepaid Company acquired an additional 52% shareholding in Glocell Distribution for a total purchase consideration of R137 million, of which R126 million was discharged by way of a conversion of debt owing by Glocell Proprietary Limited, the owners of 40% of the company, to The Prepaid Company. The remaining 12% was acquired by The Prepaid Company for R11 million. Over and above the cost of acquisition of 52% of Glocell Distribution by The Prepaid Company, the latter assumed Glocell Proprietary Limited's obligation of R105 million to Investec Bank Limited.