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  Pearson Annual Report 2001    

Notes to the Accounts


16. Other fixed asset investments

  2001 2000
all figures in £ millions valuation book value valuation book value

Listed 67 55 82 82
Unlisted 29 29 73 73

  96 84 155 155

note The valuations of unlisted investments are directors’ valuations as at 31 December 2001. If all investments were realised at valuation there would be a liability for taxation of £6m (2000: £nil).

all figures in £ millions own shares
other total

At 31 December 2000 80 89 169
Exchange differences 1 1
Additions 11 34 45
Transfers (1) (1)
Disposals (16) (16)

At 31 December 2001 91 107 198

At 31 December 2000 14 14
Provided during the year 8 8
Provision for impairment (see note below) 37 55 92

At 31 December 2001 59 55 114

Net book value      
At 31 December 2000 66 89 155

At 31 December 2001 32 52 84

note The Pearson Employee Share Trust and Pearson plc Employee Share Ownership Trusts hold 5.5m (2000: 4.2m) Pearson plc ordinary shares which had a market value of £43m at 31 December 2001 (2000: £66m). These shares have been acquired by the trusts, using funds provided by Pearson plc, to meet obligations under various executive and employee option and restricted share plans. Under these plans the participants become entitled to shares after a specified number of years and subject to certain performance criteria being met. Pearson aims to hedge its liability under the plans by buying shares through the trusts to meet the anticipated future liability. The anticipated future liability is regularly re-assessed during the year and additional shares are purchased when required to meet an increase in this liability. The cost of funding and administering the trusts are charged to the profit and loss account in the period to which they relate. The cost of the shares is being amortised over the performance period of the associated plans. Dividends on the shares held by the trusts have been waived.

The value of own shares held has been assessed against the current market value and a provision for impairment has been made.

The value of other fixed asset investments has been assessed according to the higher of net realisable value and value in use and a provision for impairment has been made. The provision includes £17m for an investment in and £10m for an investment in TimeCruiser.