The Merger Reserve (Note 19 to Annual Accounts
for 1999-2000) represents the "assets" transferred to
the merged body (The Countryside Agency) from the Rural Development
Commission (RDC) since, technically, although named the Countryside
Agency, as a legal entity the new body was a continuation in accounting
terms of the Countryside Commission. Consequently, the assets
transferred "in" from the RDC needed to be explicitly
stated in the account.
In essence, this brings onto the books of the
new merged body the value in the business taken on from the RDC
as part of the merger. For example, under Note 10 to the account,
you will find a figure of £3.1 million under fixed assets
(freehold buildings) for the transfer of the RDC's head office
building in Salisbury (sold during financial year 2000-01). This
forms the material part of the Fixed Assets figure (£3.138
million) shown in the breakdown of Note 19 (Merger Reserve).
Merger Reserve will appear again in the audited
accounts for 2000-01 which are now signed off. But from 2001-02,
steps will probably be taken, to absorb this information in to
main account because the Agency will have been trading for over
two years since merger.