25 | Reserves |
The following describes the nature and purpose of each reserve within equity:
Reserve | Description and purpose |
Share premium | Amount subscribed for share capital in excess of nominal value. |
Merger reserve | Represents the difference between the fair value and nominal value of shares issued on the acquisition of subsidiary companies where the Company has elected to take advantage of merger relief. |
Shares to be issued | Shares for which consideration has been received but which are not yet issued and which form part of consideration in a business combination. |
Foreign exchange reserve | Gains/losses arising on retranslating the net assets of overseas operations into sterling. |
Accumulated deficit | All other net gains and losses and transactions with owners (e.g. dividends) not recognised elsewhere. |