GroupCumulative
exchange
reserve
£m
Capital redemp-tion reserve
£m
Merger reserve
£m
Cost of hedging reserve
£m
Cash flow hedging reserve
£m
Total
£m
At 1 April 2019(3.7)1,033.3(703.6)12.00.3338.3
Other comprehensive income
Changes in fair value recognised in other comprehensive income1.3(7.6)(6.3)
Amounts reclassified from other comprehensive income to profit or loss5.65.6
Deferred tax adjustments in respect of prior years on net fair value gains(2.4)(2.4)
Tax on items taken directly to equity(0.2)0.40.2
Foreign exchange adjustments1.31.3
At 31 March 2020(2.4)1,033.3(703.6)10.7(1.3)336.7
GroupCumulative
exchange
reserve
£m
Capital redemp-tion reserve
(restated)
£m
Merger reserve
(restated)
£m
Cost of hedging reserve
£m
Cash flow hedging reserve
£m
Total
£m
At 1 April 2018(1.8)1,033.3(703.6)327.9
Adjustment on initial application of IFRS 9(1.1)13.812.7
At 1 April 2018(2.9)1,033.3(703.6)13.8340.6
Other comprehensive income
Changes in fair value recognised in other comprehensive income(2.2)3.51.3
Amounts reclassified from other comprehensive income to profit or loss(3.1)(3.1)
Tax on items taken directly to equity0.4(0.1)0.3
Foreign exchange adjustments(0.8)(0.8)
At 31 March 2019(3.7)1,033.3(703.6)12.00.3338.3

The capital redemption reserve arose as a result of a return of capital to shareholders following the reverse acquisition of United Utilities PLC by United Utilities Group PLC in the year ended 31 March 2009. The merger reserve arose in the same year on consolidation and represents the capital adjustment to reserves required to effect the reverse acquisition. In the prior period, the group financial statements showed a merger reserve of £329.7 million and a capital redemption reserve of £nil. The opening and closing balances of these reserves have been restated to show a merger reserve of £(703.6) million and a capital redemption reserve of £1,033.3 million. This is to better reflect the nature of the transactions associated with the reverse acquisition in the group's consolidated financial statements.

On adoption of IFRS 9 on 1 April 2018, the group recognised the cost of hedging reserve as a new component of equity. This reserve reflects accumulated fair value movements on cross-currency swaps resulting from changes in the foreign currency basis spread, which represents a liquidity charge inherent in foreign exchange contracts for exchanging currencies and is excluded from the designation of cross-currency swaps as hedging instruments.

On adoption of IFRS 9, the group designated a number of swaps hedging non-financial risks in cash flow hedge relationships in order to give a more representative view of operating costs. Fair value movements relating to the effective part of these swaps are recognised in other comprehensive income and accumulated in the cash flow hedging reserve.

Company

The company's other reserves at 31 March 2020, 31 March 2019 and 1 April 2018, were comprised entirely of a £1,033.3 million capital redemption reserve that arose as a result of a return of capital to shareholders following the acquisition of United Utilities PLC by the company in the year ended 31 March 2009.