Notes to the Accounts
26. Reserves
| all figures in £ millions | share premium account |
profit and loss account |
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| 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 |
– | 5 |
| – post acquisition | – | 1 |
| Profit retained | – | 15 |
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| At 31 December 2000 | 2,440 | 1,405 |
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| Analysed as: Joint ventures and associates |
– | 22 |
| Group excluding joint ventures and associates | 2,440 | 1,383 |
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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.
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