Notes to the Accounts
25. Reserves
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| all figures in £ millions | share premium account |
profit and loss account |
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| 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) |
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| At 31 December 2001 | 2,459 | 929 |
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| Analysed as: | ||
| Joint ventures and associates | (31) | |
| Group excluding joint ventures and associates | 960 | |
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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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