Notes to the Group annual financial statements | Note 6.2

6. EQUITY
6.2 Other reserves
 
   2023  
R'000  		 2022 
R'000 
Balance at the beginning of the year     (2 871 437)  (2 732 783)
Exchange differences on translation of foreign operations   1 646    1 251 
Transactions with non-controlling interests  —   (166 094)
Acquisition of non-controlling interest   (41) — 
Equity compensation benefit scheme shares vested   (41 423)  (9 954)
Equity compensation benefit movement   38 443    30 446 
Gain arising on changes in fair value of hedging instruments (effective portion), net of tax   6 346    7 627 
Loss on hedging instrument reclassified to profit or loss, net of tax   (10 546)  (1 930)
Balance at the end of the year    (2 877 012)  (2 871 437)
Consisting of:       
Restructuring reserve   (1 843 912)  (1 843 912)
Foreign currency translation reserve   35 655    34 009 
Non-distributable reserve   7 771    7 771 
Transactions with non-controlling interest reserve   (1 145 201)  (1 145 160)
Equity compensation benefit reserve    62 350    65 330 
Cash flow hedge reserve   6 325    10 525 
    (2 877 012)  (2 871 437)

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. On 29 June 2021, TPC acquired an additional 52% shareholding in Glocell Distribution for a total purchase consideration of R137 million, of which R126 million (refer to note 3.5) was discharged by way of a conversion of debt owing by Glocell Proprietary Limited, the owners of 40% of the company, to TPC. 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.

The cash flow hedge reserve arose in 2021. 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 3.7 for more details.