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  pearson annual report 2000    

Notes to the Accounts


26. Reserves

all figures in millions share premium
profit and loss

Summary of movements
At 31 December 1999
517 651
Exchange differences 87
Premium on issue of 185m equity shares 1,923 (8)
Goodwill arising on prior year acquisitions 1
Goodwill written back on business combinations 585
Goodwill written back 68
Replacement options granted on acquisition of subsidiary
at acquisition
post acquisition 1
Profit retained 15

At 31 December 2000 2,440 1,405

Analysed as:
Joint ventures and associates
Group excluding joint ventures and associates 2,440 1,383

note Cumulative goodwill relating to acquisitions made prior to 1998, which was deducted from reserves, amounts to 1,307m (1999: 1,870m). During 2000 Pearson plc received 27m on the issue of shares in respect of the exercise of options awarded under various share option plans. Employees paid 19m to the Group for the issue of these shares and the balance of 8m 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. At 31 December 2000 2m of proceeds on the issue of shares were in transit.

2000 Annual Report
* Introduction
* Chairman's letter
* Chief executive's review
* The Pearson Goals
* Internet Enterprises
* The Results
* Pearson Education
* The Penguin Group
* The Financial Times Group
* Recoletos
* Financial Review
* The Board
* Directors' Report
* Personnel Committee Report
* Consolidated profit and loss account
* Consolidated balance sheet
* Consolidated statement of cash flows
* Statement of total recognised gains and losses
* Reconciliation of movements in equity shareholders' funds
* Report to the Auditors to the Members of Pearson plc
* Principal subsidiaries and associates
* Five year summary
* Corporate and Operating Measures
* Shareholder information
* Notes to the accounts

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