So let's say there is a spam topic, a person who would want a merit should report by clicking on the "Report to Moderator" button and at the same time requires to post a message that he/she have already reported the topic to the moderator. After the mod have checked the validity of the report, he will award the person with a merit (in that report post) and deletes the entire topic.

Is this correct?

#EDIT
If yes, I agree with coinlocket$ that it can be abused.
Abused in a way that anyone can make an alt account to post a nonsense topic and followed up with a report post from his/her main account to gain an easy merit.