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  Pearson Annual Report 2001    

Notes to the Accounts


31. Related parties

Joint ventures and associates Loans and equity advanced to joint ventures and associates during the year and at the balance sheet date are shown in notes 14 and 15. Amounts falling due from joint ventures and associates are set out in note 18. Dividends receivable from joint ventures and associates are set out in notes 14 and 15. Details of individually significant transactions are shown below.

a. During 2000, the Group combined its television business with CLT-Ufa and retained a 22% stake in the new combined business, the RTL Group. Significant related party transactions in respect of the television business were as follows:

Channel 5 Television Group Ltd During 2000 the Group provided £22m of programming to Channel 5 Broadcasting Ltd, a wholly owned subsidiary of Channel 5 Television Group Ltd, and undertook transmission to the value of £2m for Channel 5 Engineering Services Ltd, a subsidiary of Channel 5 Television Group Ltd. During 2000 the Group paid £4m in respect of consortium relief.

Grundy associates During 2000 the Group received £2m for management fees, format rights and royalties from a number of associates of Grundy Worldwide Ltd. No individual transactions were material to the Group.

b. Lazard Partnership During 2000 the Group sold its interests in the three Lazard Houses.

The Group periodically placed funds on deposit with the Lazard Houses. The investments were made on an armís-length basis and no transactions were individually material in the context of the Group treasury transactions. The Group also used the Lazard Houses to provide professional advice. Fees for such services for the period were not material to either party.

There are no other related party transactions in 2001.