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Notes to the Consolidated Financial Statements

General information

Pearson plc (the Company) and its subsidiaries (together the Group) are involved in the provision of information for the educational sector, consumer publishing and business information.

The Company is a limited liability company incorporated and domiciled in England. The address of its registered office is 80 Strand, London WC2R 0RL.

The Company has its primary listing on the London Stock Exchange but is also listed on the New York Stock Exchange.

These consolidated financial statements were approved for issue by the Board of Directors on 26 February 2006.

1 Accounting policies
2 Segment information
3 Discontinued operations
4 Other net gains and losses
5 Operating expenses
6 Employee information
7 Net finance costs
8 Income tax
9 Earnings per share
10 Dividends
11 Property, plant and equipment
12 Intangible assets
13 Investments in joint ventures and associates
14 Deferred income tax
15 Other financial assets
16 Derivative financial instruments
17 Intangible assets - pre-publication
18 Inventories
19 Trade and other receivables
20 Cash and cash equivalents (excluding overdrafts)
21 Financial liabilities - Borrowings
22 Provisions
23 Trade and other liabilities
24 Employee benefits
25 Share capital and share premium
26 Other reserves
27 Business combinations
28 Disposals
29 Cash generated from operations
30 Contingencies
31 Commitments
32 Related party transactions
33 Events after the balance sheet date
34 Explanation of transition to IFRS

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