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  Pearson Annual Report 2001    

Notes to the Accounts

   
 

25. Reserves



all figures in millions share premium
account
profit and
loss account


Summary of movements    
At 31 December 2000 2,440 1,405
Exchange differences 19
Premium on issue of 3m equity shares 19 (2)
Goodwill written back on disposal of subsidiary undertakings and associates 37
Goodwill written back on disposal of subsidiary undertakings and associates by an associate 36
Replacement options granted on acquisition of subsidiary 2
Loss retained for the year (568)


At 31 December 2001 2,459 929


Analysed as:    
Joint ventures and associates   (31)
Group excluding joint ventures and associates   960


note Cumulative goodwill relating to acquisitions made prior to 1998, which was deducted from reserves, amounts to 1,249m (2000: 1,307m). During 2001 Pearson plc received 20m on the issue of shares in respect of the exercise of options awarded under various share option plans. Employees paid 18m to the Group for the issue of these shares and the balance of 2m comprised contributions to the qualifying employee share ownership trust (QUEST) from subsidiary undertakings. The Group has taken advantage of the exemption available by UITF abstract 17 and has not incurred a charge on options granted at a discount to market value for its Inland Revenue approved SAYE schemes and similar overseas schemes. Included in exchange differences are exchange gains of 2m arising on borrowings denominated in, or swapped into, foreign currencies designated as hedges of net investments overseas.

 
 

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