Annual Report and Accounts 2008
34 Other reserves
| Merger reserve £m | Hedging reserve £m | Translation reserve £m | Total £m | |
|---|---|---|---|---|
| At 1 January 2008 | 15.4 | 5.4 | 9.6 | 30.4 |
| Hedge movements, net of tax | – | (63.8) | – | (63.8) |
| Exchange differences, net of tax | – | – | 167.1 | 167.1 |
| At 31 December 2008 | 15.4 | (58.4) | 176.7 | 133.7 |
| Merger reserve £m | Hedging reserve £m | Translation reserve £m | Total £m | |
|---|---|---|---|---|
| At 1 January 2007 | 15.4 | (9.0) | 1.5 | 7.9 |
| Hedge movements, net of tax | – | 14.4 | – | 14.4 |
| Exchange differences, net of tax | – | – | 8.1 | 8.1 |
| At 31 December 2007 | 15.4 | 5.4 | 9.6 | 30.4 |
The nature and purpose of the other reserves are as follows:
- The merger reserve includes the premium on shares issued to satisfy the purchase of Prism Rail PLC in 2000. The reserve is not distributable.
- The hedging reserve records the movements on designated hedging items, offset by any movements recognised directly in equity on underlying hedged items.
- The translation reserve records exchange differences arising from the translation of the accounts of foreign currency denominated subsidiaries offset by the movements on loans and derivatives used to hedge the net investment in foreign subsidiaries.