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26 Equity
Share capital
Neste Oil’s share capital registered with the Trade Register as of 31 December 2013 totalled EUR 40,000,000, divided into 256,403,686 shares of equal value. The nominal value of one share is not determined.
Number of shares, 1,000 Share capital MEUR
Registered at 1 January 2013 256,404 40
Registered at 31 December 2013 256,404 40
Registered at 1 January 2012 256,404 40
Registered at 31 December 2012 256,404 40
Treasury shares
Neste Oil has entered into an agreement with a third party service provider concerning the administration of the share-based management share performance arrangement for key management personnel. As part of the agreement, the service provider purchased a total of 500,000 Neste Oil shares in February 2007 in order to hedge part of Neste Oil's cash flow risk in relation to the possible future payment of the rewards, which will take place partly in Neste Oil shares and partly in cash during 2013, 2014 and 2015. Despite the legal form of the hedging arrangement, it has been accounted for as if the share purchases had been conducted directly by Neste Oil, as required by IFRS 2, Share based payments and SIC-12, Consolidation - Special purpose entities. The consolidated balance sheet and the consolidated changes in total equity reflect the substance of the arrangement with a deduction amounting to EUR 12 million in equity. This amount represents the consideration paid for the shares by the third party service provider. In March 2013 Neste Oil decided to assign 63,526 shares held by the third party service provider. At the date of the transfer, the value of the shares was EUR 0.7 million. During the financial period 2012 no shares were assigned. As at 31 December 2013 there were 421,474 shares (2012: 485,000 shares) accounted for as treasury shares.
Other reserves
Reserve fund comprises of restricted reserves other than share capital.
Fair value and other reserves include the effective portion of the change in fair value of derivative financial instruments that are designated as and qualify for cash flow hedges, amounts recognized directly in equity concerning available-for-sale investments, and concerning equity settled share based payments, the amount corresponding to the expense recognized in the income statement.
Translation differences include exchange differences arising from the translation of the net investment in foreign entities on consolidation, change in the fair value of currency instruments designated as hedges of the net investment, and exchange differences resulting from the translation of income statement of foreign entities at the average exchange rates and balance sheet at the closing rates.