{
"documentInfo": {
"documentType": "https://xbrl.org/2021/xbrl-json",
"features": {
"xbrl:canonicalValues": true
},
"namespaces": {
"ifrs-full": "http://xbrl.ifrs.org/taxonomy/2021-03-24/ifrs-full",
"iso4217": "http://www.xbrl.org/2003/iso4217",
"pearsonplc": "http://pearsonplc.com/xbrl/2022",
"scheme": "http://standards.iso.org/iso/17442",
"xbrl": "https://xbrl.org/2021",
"xbrli": "http://www.xbrl.org/2003/instance"
},
"taxonomy": [
"http://pearsonplc.com/xbrl/2022/2138004jbxwwjkiurc57-2022-12-31.xsd"
]
},
"facts": {
"fact-6": {
"value": "3841000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Revenue",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-7": {
"value": "3428000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Revenue",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-8": {
"value": "3397000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Revenue",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-9": {
"value": "2046000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CostOfSales",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-10": {
"value": "1747000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CostOfSales",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-11": {
"value": "1767000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CostOfSales",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-12": {
"value": "1795000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:GrossProfit",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-13": {
"value": "1681000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:GrossProfit",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-14": {
"value": "1630000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:GrossProfit",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-15": {
"value": "1549000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OperatingExpense",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-16": {
"value": "1562000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OperatingExpense",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-17": {
"value": "1402000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OperatingExpense",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-18": {
"value": "24000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherGainsLosses",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-19": {
"value": "63000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherGainsLosses",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-20": {
"value": "178000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherGainsLosses",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-21": {
"value": "1000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ShareOfProfitLossOfContinuingOperationsOfAssociatesAndJointVenturesAccountedForUsingEquityMethod",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-22": {
"value": "1000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ShareOfProfitLossOfContinuingOperationsOfAssociatesAndJointVenturesAccountedForUsingEquityMethod",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-23": {
"value": "5000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ShareOfProfitLossOfContinuingOperationsOfAssociatesAndJointVenturesAccountedForUsingEquityMethod",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-24": {
"value": "271000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLossFromOperatingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-25": {
"value": "183000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLossFromOperatingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-26": {
"value": "411000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLossFromOperatingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-27": {
"value": "71000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:FinanceCosts",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-28": {
"value": "68000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:FinanceCosts",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-29": {
"value": "107000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:FinanceCosts",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-30": {
"value": "123000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:FinanceIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-31": {
"value": "62000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:FinanceIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-32": {
"value": "76000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:FinanceIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-33": {
"value": "323000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLossBeforeTax",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-34": {
"value": "177000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLossBeforeTax",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-35": {
"value": "380000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLossBeforeTax",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-36": {
"value": "79000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxExpenseContinuingOperations",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-37": {
"value": "-1000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxExpenseContinuingOperations",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-38": {
"value": "50000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxExpenseContinuingOperations",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-39": {
"value": "244000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-40": {
"value": "178000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-41": {
"value": "330000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-42": {
"value": "242000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLossAttributableToOwnersOfParent",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-43": {
"value": "177000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLossAttributableToOwnersOfParent",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-44": {
"value": "330000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLossAttributableToOwnersOfParent",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-45": {
"value": "2000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLossAttributableToNoncontrollingInterests",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-46": {
"value": "1000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLossAttributableToNoncontrollingInterests",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-47": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLossAttributableToNoncontrollingInterests",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-48": {
"value": "0.328",
"decimals": 3,
"dimensions": {
"concept": "ifrs-full:BasicEarningsLossPerShareFromContinuingOperations",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP/xbrli:shares"
}
},
"fact-49": {
"value": "0.235",
"decimals": 3,
"dimensions": {
"concept": "ifrs-full:BasicEarningsLossPerShareFromContinuingOperations",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP/xbrli:shares"
}
},
"fact-50": {
"value": "0.437",
"decimals": 3,
"dimensions": {
"concept": "ifrs-full:BasicEarningsLossPerShareFromContinuingOperations",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP/xbrli:shares"
}
},
"fact-51": {
"value": "0.326",
"decimals": 3,
"dimensions": {
"concept": "ifrs-full:DilutedEarningsLossPerShareFromContinuingOperations",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP/xbrli:shares"
}
},
"fact-52": {
"value": "0.233",
"decimals": 3,
"dimensions": {
"concept": "ifrs-full:DilutedEarningsLossPerShareFromContinuingOperations",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP/xbrli:shares"
}
},
"fact-53": {
"value": "0.437",
"decimals": 3,
"dimensions": {
"concept": "ifrs-full:DilutedEarningsLossPerShareFromContinuingOperations",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP/xbrli:shares"
}
},
"fact-54": {
"value": "244000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-55": {
"value": "178000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-56": {
"value": "330000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-57": {
"value": "330000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:NetExchangeDifferencesOnTranslationOfForeignOperations",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-58": {
"value": "-6000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:NetExchangeDifferencesOnTranslationOfForeignOperations",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-59": {
"value": "-109000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:NetExchangeDifferencesOnTranslationOfForeignOperations",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-60": {
"value": "-5000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:CurrencyTranslationAdjustmentDisposed",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-61": {
"value": "4000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:CurrencyTranslationAdjustmentDisposed",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-62": {
"value": "-70000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:CurrencyTranslationAdjustmentDisposed",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-63": {
"value": "-4000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxRelatingToExchangeDifferencesOnTranslationOfOtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-64": {
"value": "-10000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxRelatingToExchangeDifferencesOnTranslationOfOtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-65": {
"value": "13000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxRelatingToExchangeDifferencesOnTranslationOfOtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-66": {
"value": "18000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeBeforeTaxFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-67": {
"value": "4000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeBeforeTaxFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-68": {
"value": "-12000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeBeforeTaxFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-69": {
"value": "-1000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxRelatingToFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-70": {
"value": "1000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxRelatingToFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-71": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxRelatingToFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-72": {
"value": "54000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeBeforeTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-73": {
"value": "149000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeBeforeTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-74": {
"value": "-23000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeBeforeTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-75": {
"value": "12000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxRelatingToRemeasurementsOfDefinedBenefitPlansOfOtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-76": {
"value": "61000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxRelatingToRemeasurementsOfDefinedBenefitPlansOfOtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-77": {
"value": "-2000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxRelatingToRemeasurementsOfDefinedBenefitPlansOfOtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-78": {
"value": "390000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-79": {
"value": "99000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-80": {
"value": "-225000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-81": {
"value": "634000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-82": {
"value": "277000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-83": {
"value": "105000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-84": {
"value": "630000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncomeAttributableToOwnersOfParent",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-85": {
"value": "276000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncomeAttributableToOwnersOfParent",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-86": {
"value": "105000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncomeAttributableToOwnersOfParent",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-87": {
"value": "4000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncomeAttributableToNoncontrollingInterests",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-88": {
"value": "1000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncomeAttributableToNoncontrollingInterests",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-89": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncomeAttributableToNoncontrollingInterests",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-90": {
"value": "250000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PropertyPlantAndEquipment",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-91": {
"value": "366000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PropertyPlantAndEquipment",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-92": {
"value": "60000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:InvestmentProperty",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-93": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:InvestmentProperty",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-94": {
"value": "3177000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IntangibleAssetsAndGoodwill",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-95": {
"value": "2769000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IntangibleAssetsAndGoodwill",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-96": {
"value": "25000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:InvestmentAccountedForUsingEquityMethod",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-97": {
"value": "24000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:InvestmentAccountedForUsingEquityMethod",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-98": {
"value": "57000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DeferredTaxAssets",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-99": {
"value": "57000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DeferredTaxAssets",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-100": {
"value": "43000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:NoncurrentDerivativeFinancialAssets",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-101": {
"value": "30000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:NoncurrentDerivativeFinancialAssets",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-102": {
"value": "581000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:NoncurrentRecognisedAssetsDefinedBenefitPlan",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-103": {
"value": "537000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:NoncurrentRecognisedAssetsDefinedBenefitPlan",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-104": {
"value": "133000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherNoncurrentFinancialAssets",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-105": {
"value": "113000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherNoncurrentFinancialAssets",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-106": {
"value": "41000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CurrentTaxAssetsNoncurrent",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-107": {
"value": "97000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CurrentTaxAssetsNoncurrent",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-108": {
"value": "139000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:NoncurrentReceivables",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-109": {
"value": "129000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:NoncurrentReceivables",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-110": {
"value": "4506000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:NoncurrentAssets",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-111": {
"value": "4122000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:NoncurrentAssets",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-112": {
"value": "975000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:CurrentIntangibleAssetsProductDevelopment",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-113": {
"value": "894000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:CurrentIntangibleAssetsProductDevelopment",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-114": {
"value": "105000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Inventories",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-115": {
"value": "98000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Inventories",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-116": {
"value": "1139000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:TradeAndOtherCurrentReceivables",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-117": {
"value": "1257000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:TradeAndOtherCurrentReceivables",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-118": {
"value": "16000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CurrentDerivativeFinancialAssets",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-119": {
"value": "2000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CurrentDerivativeFinancialAssets",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-120": {
"value": "9000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CurrentTaxAssetsCurrent",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-121": {
"value": "26000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CurrentTaxAssetsCurrent",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-122": {
"value": "558000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashAndCashEquivalents",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-123": {
"value": "937000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashAndCashEquivalents",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-124": {
"value": "2802000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CurrentAssetsOtherThanAssetsOrDisposalGroupsClassifiedAsHeldForSaleOrAsHeldForDistributionToOwners",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-125": {
"value": "3214000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CurrentAssetsOtherThanAssetsOrDisposalGroupsClassifiedAsHeldForSaleOrAsHeldForDistributionToOwners",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-126": {
"value": "16000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:NoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSale",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-127": {
"value": "7000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:NoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSale",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-128": {
"value": "7324000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Assets",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-129": {
"value": "7343000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Assets",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-130": {
"value": "1144000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:LongtermBorrowings",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-131": {
"value": "1245000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:LongtermBorrowings",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-132": {
"value": "54000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:NoncurrentDerivativeFinancialLiabilities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-133": {
"value": "30000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:NoncurrentDerivativeFinancialLiabilities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-134": {
"value": "37000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DeferredTaxLiabilities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-135": {
"value": "40000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DeferredTaxLiabilities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-136": {
"value": "61000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:NoncurrentRecognisedLiabilitiesDefinedBenefitPlan",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-137": {
"value": "66000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:NoncurrentRecognisedLiabilitiesDefinedBenefitPlan",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-138": {
"value": "14000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherLongtermProvisions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-139": {
"value": "7000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherLongtermProvisions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-140": {
"value": "120000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherNoncurrentLiabilities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-141": {
"value": "95000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherNoncurrentLiabilities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-142": {
"value": "1430000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:NoncurrentLiabilities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-143": {
"value": "1483000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:NoncurrentLiabilities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-144": {
"value": "1254000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:TradeAndOtherCurrentPayables",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-145": {
"value": "1256000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:TradeAndOtherCurrentPayables",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-146": {
"value": "86000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CurrentBorrowingsAndCurrentPortionOfNoncurrentBorrowings",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-147": {
"value": "155000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CurrentBorrowingsAndCurrentPortionOfNoncurrentBorrowings",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-148": {
"value": "11000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CurrentDerivativeFinancialLiabilities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-149": {
"value": "4000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CurrentDerivativeFinancialLiabilities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-150": {
"value": "43000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CurrentTaxLiabilities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-151": {
"value": "125000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CurrentTaxLiabilities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-152": {
"value": "85000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherShorttermProvisions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-153": {
"value": "40000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherShorttermProvisions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-154": {
"value": "1479000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CurrentLiabilitiesOtherThanLiabilitiesIncludedInDisposalGroupsClassifiedAsHeldForSale",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-155": {
"value": "1580000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CurrentLiabilitiesOtherThanLiabilitiesIncludedInDisposalGroupsClassifiedAsHeldForSale",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-156": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:LiabilitiesIncludedInDisposalGroupsClassifiedAsHeldForSale",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-157": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:LiabilitiesIncludedInDisposalGroupsClassifiedAsHeldForSale",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-158": {
"value": "2909000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Liabilities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-159": {
"value": "3063000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Liabilities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-160": {
"value": "4415000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:NetAssetsLiabilities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-161": {
"value": "4280000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:NetAssetsLiabilities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-162": {
"value": "179000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IssuedCapital",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-163": {
"value": "189000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IssuedCapital",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-164": {
"value": "2633000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SharePremium",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-165": {
"value": "2626000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SharePremium",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-166": {
"value": "15000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:TreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-167": {
"value": "12000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:TreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-168": {
"value": "28000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CapitalRedemptionReserve",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-169": {
"value": "18000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CapitalRedemptionReserve",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-170": {
"value": "-13000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-171": {
"value": "-4000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-172": {
"value": "709000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ReserveOfExchangeDifferencesOnTranslation",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-173": {
"value": "386000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ReserveOfExchangeDifferencesOnTranslation",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-174": {
"value": "881000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:RetainedEarnings",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-175": {
"value": "1067000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:RetainedEarnings",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-176": {
"value": "4402000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:EquityAttributableToOwnersOfParent",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-177": {
"value": "4270000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:EquityAttributableToOwnersOfParent",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-178": {
"value": "13000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:NoncontrollingInterests",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-179": {
"value": "10000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:NoncontrollingInterests",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-180": {
"value": "4415000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-181": {
"value": "4280000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-182": {
"value": "189000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-183": {
"value": "2626000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-184": {
"value": "-12000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-185": {
"value": "18000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-186": {
"value": "-4000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-187": {
"value": "386000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-188": {
"value": "1067000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-189": {
"value": "4270000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-190": {
"value": "10000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-191": {
"value": "4280000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-192": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-193": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-194": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-195": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-196": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-197": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-198": {
"value": "242000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-199": {
"value": "242000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-200": {
"value": "2000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-201": {
"value": "244000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-202": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-203": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-204": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-205": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-206": {
"value": "18000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-207": {
"value": "323000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-208": {
"value": "47000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-209": {
"value": "388000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-210": {
"value": "2000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-211": {
"value": "390000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-212": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-213": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-214": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-215": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-216": {
"value": "18000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-217": {
"value": "323000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-218": {
"value": "289000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-219": {
"value": "630000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-220": {
"value": "4000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-221": {
"value": "634000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-222": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-223": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-224": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-225": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-226": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-227": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-228": {
"value": "38000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-229": {
"value": "38000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-230": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-231": {
"value": "38000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-232": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DecreaseIncreaseThroughTaxOnSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-233": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DecreaseIncreaseThroughTaxOnSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-234": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DecreaseIncreaseThroughTaxOnSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-235": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DecreaseIncreaseThroughTaxOnSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-236": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DecreaseIncreaseThroughTaxOnSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-237": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DecreaseIncreaseThroughTaxOnSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-238": {
"value": "3000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DecreaseIncreaseThroughTaxOnSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-239": {
"value": "3000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DecreaseIncreaseThroughTaxOnSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-240": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DecreaseIncreaseThroughTaxOnSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-241": {
"value": "3000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DecreaseIncreaseThroughTaxOnSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-242": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-243": {
"value": "7000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-244": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-245": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-246": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-247": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-248": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-249": {
"value": "7000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-250": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-251": {
"value": "7000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-252": {
"value": "10000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-253": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-254": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-255": {
"value": "-10000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-256": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-257": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-258": {
"value": "353000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-259": {
"value": "353000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-260": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-261": {
"value": "353000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-262": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-263": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-264": {
"value": "37000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-265": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-266": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-267": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-268": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-269": {
"value": "37000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-270": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-271": {
"value": "37000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-272": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SaleOrIssueOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-273": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SaleOrIssueOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-274": {
"value": "34000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SaleOrIssueOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-275": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SaleOrIssueOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-276": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SaleOrIssueOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-277": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SaleOrIssueOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-278": {
"value": "-34000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SaleOrIssueOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-279": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SaleOrIssueOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-280": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SaleOrIssueOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-281": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SaleOrIssueOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-282": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:TransferOfGainOnDisposalOfFVOCIInvestment",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-283": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:TransferOfGainOnDisposalOfFVOCIInvestment",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-284": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:TransferOfGainOnDisposalOfFVOCIInvestment",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-285": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:TransferOfGainOnDisposalOfFVOCIInvestment",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-286": {
"value": "-27000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:TransferOfGainOnDisposalOfFVOCIInvestment",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-287": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:TransferOfGainOnDisposalOfFVOCIInvestment",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-288": {
"value": "27000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:TransferOfGainOnDisposalOfFVOCIInvestment",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-289": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:TransferOfGainOnDisposalOfFVOCIInvestment",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-290": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:TransferOfGainOnDisposalOfFVOCIInvestment",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-291": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:TransferOfGainOnDisposalOfFVOCIInvestment",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-292": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-293": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-294": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-295": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-296": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-297": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-298": {
"value": "156000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-299": {
"value": "156000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-300": {
"value": "1000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-301": {
"value": "157000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-302": {
"value": "179000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-303": {
"value": "2633000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-304": {
"value": "-15000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-305": {
"value": "28000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-306": {
"value": "-13000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-307": {
"value": "709000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-308": {
"value": "881000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-309": {
"value": "4402000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-310": {
"value": "13000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-311": {
"value": "4415000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-312": {
"value": "188000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-313": {
"value": "2620000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-314": {
"value": "-7000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-315": {
"value": "18000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-316": {
"value": "-4000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-317": {
"value": "388000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-318": {
"value": "922000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-319": {
"value": "4125000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-320": {
"value": "9000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-321": {
"value": "4134000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-322": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-323": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-324": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-325": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-326": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-327": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-328": {
"value": "177000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-329": {
"value": "177000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-330": {
"value": "1000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-331": {
"value": "178000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-332": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-333": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-334": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-335": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-336": {
"value": "4000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-337": {
"value": "-2000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-338": {
"value": "97000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-339": {
"value": "99000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-340": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-341": {
"value": "99000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-342": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-343": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-344": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-345": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-346": {
"value": "4000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-347": {
"value": "-2000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-348": {
"value": "274000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-349": {
"value": "276000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-350": {
"value": "1000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-351": {
"value": "277000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-352": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-353": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-354": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-355": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-356": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-357": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-358": {
"value": "28000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-359": {
"value": "28000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-360": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-361": {
"value": "28000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-362": {
"value": "1000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-363": {
"value": "6000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-364": {
"value": "-1000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-365": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-366": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-367": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-368": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-369": {
"value": "6000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-370": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-371": {
"value": "6000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-372": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-373": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-374": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-375": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-376": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-377": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-378": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-379": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-380": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-381": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-382": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-383": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-384": {
"value": "16000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-385": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-386": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-387": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-388": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-389": {
"value": "16000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-390": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-391": {
"value": "16000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-392": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SaleOrIssueOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-393": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SaleOrIssueOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-394": {
"value": "12000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SaleOrIssueOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-395": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SaleOrIssueOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-396": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SaleOrIssueOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-397": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SaleOrIssueOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-398": {
"value": "-12000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SaleOrIssueOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-399": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SaleOrIssueOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-400": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SaleOrIssueOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-401": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SaleOrIssueOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-402": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:TransferOfGainOnDisposalOfFVOCIInvestment",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-403": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:TransferOfGainOnDisposalOfFVOCIInvestment",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-404": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:TransferOfGainOnDisposalOfFVOCIInvestment",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-405": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:TransferOfGainOnDisposalOfFVOCIInvestment",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-406": {
"value": "-4000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:TransferOfGainOnDisposalOfFVOCIInvestment",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-407": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:TransferOfGainOnDisposalOfFVOCIInvestment",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-408": {
"value": "4000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:TransferOfGainOnDisposalOfFVOCIInvestment",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-409": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:TransferOfGainOnDisposalOfFVOCIInvestment",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-410": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:TransferOfGainOnDisposalOfFVOCIInvestment",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-411": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:TransferOfGainOnDisposalOfFVOCIInvestment",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-412": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-413": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-414": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-415": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-416": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-417": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-418": {
"value": "149000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-419": {
"value": "149000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-420": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-421": {
"value": "149000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-422": {
"value": "189000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-423": {
"value": "2626000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-424": {
"value": "-12000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-425": {
"value": "18000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-426": {
"value": "-4000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-427": {
"value": "386000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-428": {
"value": "1067000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-429": {
"value": "4270000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-430": {
"value": "10000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-431": {
"value": "4280000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-432": {
"value": "195000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:PreviouslyStatedMember",
"unit": "iso4217:GBP"
}
},
"fact-433": {
"value": "2614000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:PreviouslyStatedMember",
"unit": "iso4217:GBP"
}
},
"fact-434": {
"value": "-24000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:PreviouslyStatedMember",
"unit": "iso4217:GBP"
}
},
"fact-435": {
"value": "11000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:PreviouslyStatedMember",
"unit": "iso4217:GBP"
}
},
"fact-436": {
"value": "39000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:PreviouslyStatedMember",
"unit": "iso4217:GBP"
}
},
"fact-437": {
"value": "567000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:PreviouslyStatedMember",
"unit": "iso4217:GBP"
}
},
"fact-438": {
"value": "911000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:PreviouslyStatedMember",
"unit": "iso4217:GBP"
}
},
"fact-439": {
"value": "4313000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:PreviouslyStatedMember",
"unit": "iso4217:GBP"
}
},
"fact-440": {
"value": "10000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:PreviouslyStatedMember",
"unit": "iso4217:GBP"
}
},
"fact-441": {
"value": "4323000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:PreviouslyStatedMember",
"unit": "iso4217:GBP"
}
},
"fact-442": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:IncreaseDecreaseDueToChangesInAccountingPolicyAndCorrectionsOfPriorPeriodErrorsMember",
"unit": "iso4217:GBP"
}
},
"fact-443": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:IncreaseDecreaseDueToChangesInAccountingPolicyAndCorrectionsOfPriorPeriodErrorsMember",
"unit": "iso4217:GBP"
}
},
"fact-444": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:IncreaseDecreaseDueToChangesInAccountingPolicyAndCorrectionsOfPriorPeriodErrorsMember",
"unit": "iso4217:GBP"
}
},
"fact-445": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:IncreaseDecreaseDueToChangesInAccountingPolicyAndCorrectionsOfPriorPeriodErrorsMember",
"unit": "iso4217:GBP"
}
},
"fact-446": {
"value": "-31000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:IncreaseDecreaseDueToChangesInAccountingPolicyAndCorrectionsOfPriorPeriodErrorsMember",
"unit": "iso4217:GBP"
}
},
"fact-447": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:IncreaseDecreaseDueToChangesInAccountingPolicyAndCorrectionsOfPriorPeriodErrorsMember",
"unit": "iso4217:GBP"
}
},
"fact-448": {
"value": "31000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:IncreaseDecreaseDueToChangesInAccountingPolicyAndCorrectionsOfPriorPeriodErrorsMember",
"unit": "iso4217:GBP"
}
},
"fact-449": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:IncreaseDecreaseDueToChangesInAccountingPolicyAndCorrectionsOfPriorPeriodErrorsMember",
"unit": "iso4217:GBP"
}
},
"fact-450": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:IncreaseDecreaseDueToChangesInAccountingPolicyAndCorrectionsOfPriorPeriodErrorsMember",
"unit": "iso4217:GBP"
}
},
"fact-451": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:IncreaseDecreaseDueToChangesInAccountingPolicyAndCorrectionsOfPriorPeriodErrorsMember",
"unit": "iso4217:GBP"
}
},
"fact-452": {
"value": "195000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-453": {
"value": "2614000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-454": {
"value": "-24000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-455": {
"value": "11000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-456": {
"value": "8000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-457": {
"value": "567000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-458": {
"value": "942000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-459": {
"value": "4313000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-460": {
"value": "10000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-461": {
"value": "4323000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-462": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-463": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-464": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-465": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-466": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-467": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-468": {
"value": "330000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-469": {
"value": "330000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-470": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-471": {
"value": "330000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-472": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-473": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-474": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-475": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-476": {
"value": "-12000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-477": {
"value": "-179000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-478": {
"value": "-34000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-479": {
"value": "-225000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-480": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-481": {
"value": "-225000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-482": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-483": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-484": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-485": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-486": {
"value": "-12000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-487": {
"value": "-179000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-488": {
"value": "296000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-489": {
"value": "105000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-490": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-491": {
"value": "105000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-492": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-493": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-494": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-495": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-496": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-497": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-498": {
"value": "29000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-499": {
"value": "29000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-500": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-501": {
"value": "29000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-502": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-503": {
"value": "6000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-504": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-505": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-506": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-507": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-508": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-509": {
"value": "6000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-510": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-511": {
"value": "6000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughExerciseOfOptions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-512": {
"value": "7000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-513": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-514": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-515": {
"value": "-7000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-516": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-517": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-518": {
"value": "176000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-519": {
"value": "176000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-520": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-521": {
"value": "176000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-522": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-523": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-524": {
"value": "6000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-525": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-526": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-527": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-528": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-529": {
"value": "6000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-530": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-531": {
"value": "6000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-532": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SaleOrIssueOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-533": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SaleOrIssueOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-534": {
"value": "23000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SaleOrIssueOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-535": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SaleOrIssueOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-536": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SaleOrIssueOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-537": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SaleOrIssueOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-538": {
"value": "-23000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SaleOrIssueOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-539": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SaleOrIssueOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-540": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SaleOrIssueOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-541": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:SaleOrIssueOfTreasuryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-542": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-543": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-544": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-545": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-546": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-547": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-548": {
"value": "146000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-549": {
"value": "146000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-550": {
"value": "1000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-551": {
"value": "147000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-552": {
"value": "188000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:GBP"
}
},
"fact-553": {
"value": "2620000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:GBP"
}
},
"fact-554": {
"value": "-7000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:GBP"
}
},
"fact-555": {
"value": "18000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember",
"unit": "iso4217:GBP"
}
},
"fact-556": {
"value": "-4000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfGainsAndLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeMember",
"unit": "iso4217:GBP"
}
},
"fact-557": {
"value": "388000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:GBP"
}
},
"fact-558": {
"value": "922000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember",
"unit": "iso4217:GBP"
}
},
"fact-559": {
"value": "4125000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:GBP"
}
},
"fact-560": {
"value": "9000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:GBP"
}
},
"fact-561": {
"value": "4134000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-562": {
"value": "323000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLossBeforeTax",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-563": {
"value": "177000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLossBeforeTax",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-564": {
"value": "380000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLossBeforeTax",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-565": {
"value": "52000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForFinanceIncomeCost",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-566": {
"value": "-6000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForFinanceIncomeCost",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-567": {
"value": "-31000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForFinanceIncomeCost",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-568": {
"value": "-136000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:AdjustmentsForDepreciationAndImpairmentPPEAndInvestmentProperty",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-569": {
"value": "-241000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:AdjustmentsForDepreciationAndImpairmentPPEAndInvestmentProperty",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-570": {
"value": "-125000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:AdjustmentsForDepreciationAndImpairmentPPEAndInvestmentProperty",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-571": {
"value": "-125000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:AdjustmentsForAmortisationAndImpairmentSoftware",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-572": {
"value": "-117000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:AdjustmentsForAmortisationAndImpairmentSoftware",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-573": {
"value": "-112000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:AdjustmentsForAmortisationAndImpairmentSoftware",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-574": {
"value": "-54000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:AdjustmentsForAmortisationAndImpairmentAcquiredIntangibleAssets",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-575": {
"value": "-50000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:AdjustmentsForAmortisationAndImpairmentAcquiredIntangibleAssets",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-576": {
"value": "-80000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:AdjustmentsForAmortisationAndImpairmentAcquiredIntangibleAssets",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-577": {
"value": "24000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:AdjustmentsForOtherNetGainsAndLosses",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-578": {
"value": "63000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:AdjustmentsForOtherNetGainsAndLosses",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-579": {
"value": "178000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:AdjustmentsForOtherNetGainsAndLosses",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-580": {
"value": "357000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:AdjustmentsForProductDevelopmentCapitalExpenditure",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-581": {
"value": "287000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:AdjustmentsForProductDevelopmentCapitalExpenditure",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-582": {
"value": "323000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:AdjustmentsForProductDevelopmentCapitalExpenditure",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-583": {
"value": "-303000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:AdjustmentsForProductDevelopmentAmortisation",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-584": {
"value": "-279000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:AdjustmentsForProductDevelopmentAmortisation",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-585": {
"value": "-280000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:AdjustmentsForProductDevelopmentAmortisation",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-586": {
"value": "35000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForSharebasedPayments",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-587": {
"value": "28000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForSharebasedPayments",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-588": {
"value": "29000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForSharebasedPayments",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-589": {
"value": "-34000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInInventories",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-590": {
"value": "22000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInInventories",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-591": {
"value": "35000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInInventories",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-592": {
"value": "33000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInTradeAndOtherReceivables",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-593": {
"value": "-71000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInTradeAndOtherReceivables",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-594": {
"value": "-1000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInTradeAndOtherReceivables",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-595": {
"value": "-84000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForIncreaseDecreaseInTradeAndOtherPayables",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-596": {
"value": "37000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForIncreaseDecreaseInTradeAndOtherPayables",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-597": {
"value": "-26000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForIncreaseDecreaseInTradeAndOtherPayables",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-598": {
"value": "50000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForProvisions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-599": {
"value": "14000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForProvisions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-600": {
"value": "-37000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForProvisions",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-601": {
"value": "19000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherAdjustmentsToReconcileProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-602": {
"value": "20000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherAdjustmentsToReconcileProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-603": {
"value": "-57000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherAdjustmentsToReconcileProfitLoss",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-604": {
"value": "527000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInOperations",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-605": {
"value": "570000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInOperations",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-606": {
"value": "450000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInOperations",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-607": {
"value": "57000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:InterestPaidClassifiedAsOperatingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-608": {
"value": "67000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:InterestPaidClassifiedAsOperatingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-609": {
"value": "63000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:InterestPaidClassifiedAsOperatingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-610": {
"value": "109000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxesPaidRefundClassifiedAsOperatingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-611": {
"value": "177000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxesPaidRefundClassifiedAsOperatingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-612": {
"value": "-2000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxesPaidRefundClassifiedAsOperatingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-613": {
"value": "361000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInOperatingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-614": {
"value": "326000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInOperatingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-615": {
"value": "389000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInOperatingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-616": {
"value": "228000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:AcquisitionOfSubsidiariesNetOfCashAcquiredClassifiedAsInvestingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-617": {
"value": "55000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:AcquisitionOfSubsidiariesNetOfCashAcquiredClassifiedAsInvestingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-618": {
"value": "6000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:AcquisitionOfSubsidiariesNetOfCashAcquiredClassifiedAsInvestingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-619": {
"value": "5000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:AcquisitionOfJointVenturesAndAssociatesClassifiedAsInvestingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-620": {
"value": "10000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:AcquisitionOfJointVenturesAndAssociatesClassifiedAsInvestingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-621": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:AcquisitionOfJointVenturesAndAssociatesClassifiedAsInvestingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-622": {
"value": "12000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethod",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-623": {
"value": "4000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethod",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-624": {
"value": "6000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethod",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-625": {
"value": "57000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-626": {
"value": "64000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-627": {
"value": "53000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-628": {
"value": "90000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfIntangibleAssetsClassifiedAsInvestingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-629": {
"value": "112000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfIntangibleAssetsClassifiedAsInvestingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-630": {
"value": "81000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfIntangibleAssetsClassifiedAsInvestingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-631": {
"value": "333000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:DerecognitionOfInterestInSubsidiaryIncludingDisposalOfCash",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-632": {
"value": "83000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:DerecognitionOfInterestInSubsidiaryIncludingDisposalOfCash",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-633": {
"value": "100000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:DerecognitionOfInterestInSubsidiaryIncludingDisposalOfCash",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-634": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProceedsFromSalesOfInvestmentsAccountedForUsingEquityMethod",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-635": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProceedsFromSalesOfInvestmentsAccountedForUsingEquityMethod",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-636": {
"value": "531000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProceedsFromSalesOfInvestmentsAccountedForUsingEquityMethod",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-637": {
"value": "17000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProceedsFromSalesOfInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethod",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-638": {
"value": "48000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProceedsFromSalesOfInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethod",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-639": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProceedsFromSalesOfInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethod",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-640": {
"value": "14000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProceedsFromSalesOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-641": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProceedsFromSalesOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-642": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProceedsFromSalesOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-643": {
"value": "18000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:ProceedsFromLeaseReceivables",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-644": {
"value": "21000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:ProceedsFromLeaseReceivables",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-645": {
"value": "41000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:ProceedsFromLeaseReceivables",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-646": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:LoansRepaidByAdvanceOfAdvancesAndLoansMadeToRelatedParties",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-647": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:LoansRepaidByAdvanceOfAdvancesAndLoansMadeToRelatedParties",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-648": {
"value": "48000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:LoansRepaidByAdvanceOfAdvancesAndLoansMadeToRelatedParties",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-649": {
"value": "22000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:InterestReceivedClassifiedAsInvestingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-650": {
"value": "13000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:InterestReceivedClassifiedAsInvestingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-651": {
"value": "13000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:InterestReceivedClassifiedAsInvestingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-652": {
"value": "1000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsReceivedFromInvestmentsAccountedForUsingEquityMethodClassifiedAsInvestingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-653": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsReceivedFromInvestmentsAccountedForUsingEquityMethodClassifiedAsInvestingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-654": {
"value": "4000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsReceivedFromInvestmentsAccountedForUsingEquityMethodClassifiedAsInvestingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-655": {
"value": "13000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInInvestingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-656": {
"value": "-80000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInInvestingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-657": {
"value": "591000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInInvestingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-658": {
"value": "7000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProceedsFromIssueOfOrdinaryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-659": {
"value": "6000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProceedsFromIssueOfOrdinaryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-660": {
"value": "6000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProceedsFromIssueOfOrdinaryShares",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-661": {
"value": "353000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquityClassifiedAsFinancingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-662": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquityClassifiedAsFinancingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-663": {
"value": "176000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:BuybackOfEquityClassifiedAsFinancingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-664": {
"value": "37000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:PurchaseOfTreasurySharesClassifiedAsFinancingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-665": {
"value": "16000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:PurchaseOfTreasurySharesClassifiedAsFinancingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-666": {
"value": "6000000",
"decimals": -6,
"dimensions": {
"concept": "pearsonplc:PurchaseOfTreasurySharesClassifiedAsFinancingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-667": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProceedsFromBorrowingsClassifiedAsFinancingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-668": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProceedsFromBorrowingsClassifiedAsFinancingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-669": {
"value": "346000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProceedsFromBorrowingsClassifiedAsFinancingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-670": {
"value": "171000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:RepaymentsOfBorrowingsClassifiedAsFinancingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-671": {
"value": "167000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:RepaymentsOfBorrowingsClassifiedAsFinancingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-672": {
"value": "230000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:RepaymentsOfBorrowingsClassifiedAsFinancingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-673": {
"value": "93000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PaymentsOfLeaseLiabilitiesClassifiedAsFinancingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-674": {
"value": "88000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PaymentsOfLeaseLiabilitiesClassifiedAsFinancingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-675": {
"value": "92000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PaymentsOfLeaseLiabilitiesClassifiedAsFinancingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-676": {
"value": "156000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaidToEquityHoldersOfParentClassifiedAsFinancingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-677": {
"value": "149000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaidToEquityHoldersOfParentClassifiedAsFinancingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-678": {
"value": "146000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaidToEquityHoldersOfParentClassifiedAsFinancingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-679": {
"value": "1000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaidToNoncontrollingInterestsClassifiedAsFinancingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-680": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaidToNoncontrollingInterestsClassifiedAsFinancingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-681": {
"value": "1000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaidToNoncontrollingInterestsClassifiedAsFinancingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-682": {
"value": "-804000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInFinancingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-683": {
"value": "-414000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInFinancingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-684": {
"value": "-299000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInFinancingActivities",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-685": {
"value": "36000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:EffectOfExchangeRateChangesOnCashAndCashEquivalents",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-686": {
"value": "-8000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:EffectOfExchangeRateChangesOnCashAndCashEquivalents",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-687": {
"value": "-2000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:EffectOfExchangeRateChangesOnCashAndCashEquivalents",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-688": {
"value": "-394000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalents",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-689": {
"value": "-176000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalents",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-690": {
"value": "679000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalents",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00/2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-691": {
"value": "937000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashAndCashEquivalentsIfDifferentFromStatementOfFinancialPosition",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-692": {
"value": "1113000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashAndCashEquivalentsIfDifferentFromStatementOfFinancialPosition",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-693": {
"value": "434000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashAndCashEquivalentsIfDifferentFromStatementOfFinancialPosition",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2020-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-694": {
"value": "543000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashAndCashEquivalentsIfDifferentFromStatementOfFinancialPosition",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-695": {
"value": "937000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashAndCashEquivalentsIfDifferentFromStatementOfFinancialPosition",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-696": {
"value": "1113000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashAndCashEquivalentsIfDifferentFromStatementOfFinancialPosition",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2021-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-698": {
"value": "Notes to the consolidated financial statements General information Pearson plc (\u2018the company\u2019), its subsidiaries and associates (together \u2018the Group\u2019) are international businesses covering educational courseware, assessments and services. The company is a public limited company incorporated in England and Wales and domiciled in the United Kingdom. The address of its registered office is 80 Strand, London WC2R 0RL. The company has its primary listing on the London Stock Exchange and is also listed on the New York Stock Exchange. These consolidated financial statements were approved for issue by the Board of Directors on 15 March 2023. 1a. Accounting policies The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. Basis of preparation These consolidated financial statements, and the company financial statements, have been prepared on the going concern basis (see note 1c) and in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority and in accordance with UK-adopted International Accounting Standards and with the requirements of the Companies Act 2006. On 31 December 2020, IFRS as adopted by the European Union at that date was brought into UK law and became UK-adopted International Accounting Standards (IASs), with future changes being subject to endorsement by the UK Endorsement Board. The Group and company transitioned to UK-adopted IASs on 1 January 2021. This change constituted a change in accounting framework. However, there was no impact on recognition, measurement or disclosure as a result of the change in framework. The consolidated and company financial statements have also been prepared in accordance with IFRSs as issued by the International Accounting Standards Board (IASB) as they apply to annual reporting periods beginning on 1 January 2022. In respect of accounting standards applicable to the Group, there is no difference between UK-adopted IASs and IFRSs as issued by the IASB as they apply to annual reporting periods commencing on 1 January 2022. These consolidated financial statements, and the company financial statements, have been prepared under the historical cost convention as modified by the revaluation of financial assets and liabilities (including derivative financial instruments) at fair value. These accounting policies have been consistently applied to all years presented, unless otherwise stated. 1. Interpretations and amendments to published standards effective 2022 \u2013 No new standards were adopted in 2022. A number of other new pronouncements are effective from 1 January 2022 but they do not have a material impact on the consolidated financial statements, or the company financial statements. Additional disclosure has been given where relevant. 2. Standards, interpretations and amendments to published standards that are not yet effective \u2013 The following new accounting standards and amendments to new accounting standards have been issued but are not yet effective and unless otherwise indicated, have been endorsed by the UK Endorsement Board: \u2014 IFRS 17 \u2018Insurance contracts\u2019; \u2014 Amendments to IAS 1 and IFRS Practice Statement 2 \u2018Disclosure of accounting policies\u2019; \u2014 Amendments to IAS 1 \u2018Classification of liabilities as current or non-current\u2019 (not yet endorsed); \u2014 Amendments to IAS 1 \u2018Non-current liabilities with covenants\u2019 (not yet endorsed); \u2014 Amendments to IAS 8 \u2018Definition of accounting estimates\u2019; \u2014 Amendments to IAS 12 \u2018Deferred tax related to assets and liabilities arising from a single transaction\u2019; and \u2014 Amendments to IFRS 16 \u2019Lease liability in a sale and leaseback\u2019 (not yet endorsed). The Group is currently assessing the impact of the above changes, but they are not expected to have a material impact. The Group does not plan to early adopt any of the above new accounting standards or amendments. The Group has not adopted any other standard, amendment or interpretation that has been issued but is not yet effective. 3. Critical accounting assumptions and judgements \u2013 The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting assumptions and estimates. It also requires management to exercise its judgement in the process of applying the Group\u2019s accounting policies. All assumptions and estimates constitute management\u2019s best judgement at the date of the financial statements, however, in the future, actual experience may deviate from these estimates and assumptions. The areas requiring a higher degree of judgement or complexity, or areas where assumptions and estimates have a significant risk of resulting in material adjustments to the carrying value of assets and liabilities within the consolidated financial statements are: \u2014 Intangible assets: goodwill and acquired intangible assets \u2014 Taxation \u2014 Revenue: provisions for returns \u2014 Employee benefits: pensions \u2014 Property, plant and equipment: right-of-use assets \u2014 Classification as discontinued operations The key judgements and key areas of estimation are set out below, as well as in the relevant accounting policies and in the notes to the accounts where appropriate. The Group has assessed the impact of the uncertainty presented by the volatile macro-economic and geo-political environment on the financial statements, specifically considering the impact on key judgements and significant estimates along with other areas of increased risk as follows: \u2014 Financial instruments and hedge accounting; and \u2014 Translation methodologies. No material accounting impacts relating to the areas assessed above were recognised in the year. The Group will continue to monitor these areas of increased judgement, estimation and risk. The Group no longer considers the COVID-19 pandemic to be an area of significant uncertainty and is no longer specifically assessing the impact of the COVID-19 pandemic on areas of judgement, estimation and risk. KJ Key judgements \u2014 The application of tax legislation in relation to provisions for uncertain tax positions. See notes 7 and 34. \u2014 The allocation of goodwill to the cash-generating units and groups of cash-generating units. See note 11. \u2014 Whether the Group will be eligible to receive the surplus associated with the UK Group Pension Plan in recognising a pension asset. See note 25. \u2014 The results and cash flows of businesses disposed do not meet the criteria to be classified and presented as discontinued operations. See note 31. KE Key areas of estimation \u2014 The recoverability of goodwill balances. Key assumptions used in goodwill impairment testing are discount rates, perpetuity growth rates, forecast sales growth rates and forecast operating profits. See note 11. \u2014 The valuation of acquired intangible assets recognised on the acquisition of a business. See notes 11 and 30. \u2014 The level of provisions required in relation to uncertain tax positions is complex and each matter is separately assessed. The estimation of future settlement amounts is based on a number of factors including the status of the unresolved matter, clarity of legislation, range of possible outcomes and the statute of limitations. See notes 7 and 34. \u2014 The level of provisions required for anticipated returns is estimated based on historical experience, customer buying patterns and retailer behaviours including stock levels. See note 3. \u2014 The determination of the pension cost and defined benefit obligation of the Group\u2019s defined benefit pension schemes depends on the selection of certain assumptions, which include the discount rate, inflation rate, salary growth and longevity. See note 25. \u2014 The recoverability of right-of-use assets and in particular assumptions related to the ability to sublease vacant leased assets in the future. See note 10. Consolidation 1. Business combinations \u2013 The acquisition method of accounting is used to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the equity interest issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred in the operating expenses line of the income statement. Identifiable assets acquired and identifiable liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The determination of fair values often requires significant judgements and the use of estimates, and, for material acquisitions, the fair value of the acquired intangible assets is determined by an independent valuer. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill (note 30). See the \u2018Intangible assets\u2019 policy for the accounting policy on goodwill. If this is less than the fair value of the net assets of the subsidiary acquired, in the case of a bargain purchase, the difference is recognised directly in the income statement. On an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in the acquiree either at fair value or at the non-controlling interest\u2019s proportionate share of the acquiree\u2019s net assets. IFRS 3 \u2018Business Combinations\u2019 has not been applied retrospectively to business combinations before the date of transition to IFRS. Management exercises judgement in determining the classification of its investments in its businesses, in line with the following: 2. Subsidiaries \u2013 Subsidiaries are entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. 3. Transactions with non-controlling interests \u2013 Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions, that is, as transactions with the owners in their capacity as owners. Any surplus or deficit arising from disposals to a non-controlling interest is recorded in equity. For purchases from a non-controlling interest, the difference between consideration paid and the relevant share acquired of the carrying value of the subsidiary is recorded in equity. 4. Joint ventures and associates \u2013 Joint ventures are entities in which the Group holds an interest on a long-term basis and has rights to the net assets through contractually agreed sharing of control. Associates are entities over which the Group has significant influence but not the power to control the financial and operating policies, generally accompanying a shareholding of between 20% and 50% of the voting rights. Ownership percentage is likely to be t he key indicator of investment classification; however, other factors, such as Board representation, may also affect the accounting classification. Judgement is required to assess all of the qualitative and quantitative factors which may indicate that the Group does, or does not, have significant influence over an investment. Investments in joint ventures and associates are accounted for by the equity method and are initially recognised at the fair value of consideration transferred. Notes to the consolidated financial statements continued
1a. Accounting policies continued
Consolidation continued
The Group\u2019s share of its joint ventures\u2019 and associates\u2019 post-
acquisition profits or losses is recognised in the income statement
and its share of post-acquisition movements in reserves is
recognised in reserves.
The Group\u2019s share of its joint ventures\u2019 and associates\u2019 results is
recognised as a component of operating profit as these operations
form part of the core publishing business of the Group and are an
integral part of existing wholly-owned businesses. The cumulative
post-acquisition movements are adjusted against the carrying
amount of the investment. When the Group\u2019s share of losses in a
joint venture or associate equals or exceeds its interest in the joint
venture or associate, the Group does not recognise further losses
unless the Group has incurred obligations or made payments on
behalf of the joint venture or associate.
Unrealised gains and losses on transactions between the Group and
its joint ventures and associates are eliminated to the extent of the
Group\u2019s interest in these entities.
5. Contribution of a subsidiary to an associate or joint venture
\u2013 The gain or loss resulting from the contribution or sale of a
subsidiary to an associate or a joint venture is recognised in full.
Where such transactions do not involve cash consideration,
significant judgements and estimates are used in determining
the fair values of the consideration received.
Foreign currency translation
1. Functional and presentation currency \u2013 Items included in the
financial statements of each of the Group\u2019s entities are measured
using the currency of the primary economic environment in which
the entity operates (the functional currency). The consolidated
financial statements are presented in sterling, which is the company\u2019s
functional and presentation currency.
2. Transactions and balances \u2013 Foreign currency transactions are
translated into the functional currency using the exchange rates
prevailing at the dates of the transactions. Foreign exchange gains
and losses resulting from the settlement of such transactions and
from the translation at year-end exchange rates of monetary assets
and liabilities denominated in foreign currencies are recognised in
the income statement, except when deferred in equity as qualifying
net investment hedges.
3. Group companies \u2013 The results and financial position of all Group
companies that have a functional currency different from the
presentation currency are translated into the presentation currency
as follows:
\u2014 Assets and liabilities are translated at the closing rate at the date
of the balance sheet
\u2014 Income and expenses are translated at average exchange rates
\u2014 All resulting exchange differences are recognised as a separate
component of equity.
On consolidation, exchange differences arising from the translation
of the net investment in foreign entities, and of borrowings and other
currency instruments designated as hedges of such investments, are
taken to shareholders\u2019 equity. The Group treats specific inter-
company loan balances, which are not intended to be repaid in the
foreseeable future, as part of its net investment. When a foreign
operation is sold, such exchange differences are recognised in the
income statement as part of the gain or loss on sale.
The principal overseas currency for the Group is the US dollar.
The average rate for the year against sterling was $1.24 (2021:
$1.38; 2020: $1.28) and the year-end rate was $1.21 (2021: 1.35;
2020: $1.37).
Property, plant and equipment
Property, plant and equipment are stated at historical cost less
depreciation. Cost includes the original purchase price of the asset
and the costs attributable to bringing the asset to its working
condition for intended use. Land is not depreciated. Depreciation on
other assets is calculated using the straight-line method to allocate
their cost less their residual values over their estimated useful lives
as follows:
Buildings (freehold): 20\u201350 years
Buildings (leasehold): over the period of the lease
Plant and equipment: 3\u201310 years
The assets\u2019 residual values and useful lives are reviewed, and
adjusted if appropriate, at each balance sheet date.
The carrying value of an asset is written down to its recoverable
amount if the carrying value of the asset is greater than its estimated
recoverable amount.
Investment property
In 2022, the Group classified certain assets as investment property.
Properties that are no longer occupied by the Group and which are
held for operating lease rental are classified as investment property.
Investment property assets are carried at cost less accumulated
depreciation and any recognised impairment in value. The
depreciation policies for investment property are consistent with
those described for property, plant and equipment
Intangible assets
1. Goodwill \u2013 For the acquisition of subsidiaries made on or after
1 January 2010, goodwill represents the excess of the consideration
transferred, the amount of any non-controlling interest in the
acquiree and the acquisition date fair value of any previous equity
interest in the acquiree over the fair value of the identifiable net
assets acquired. For the acquisition of subsidiaries made from the
date of transition to IFRS to 31 December 2009, goodwill represents
the excess of the cost of an acquisition over the fair value of the
Group\u2019s share of the net identifiable assets acquired. Goodwill on
acquisitions of subsidiaries is included in intangible assets. Goodwill
on acquisition of associates and joint ventures represents the excess
of the cost of an acquisition over the fair value of the Group\u2019s share
of the net identifiable assets acquired.
Goodwill on acquisitions of associates and joint ventures is included
in investments in associates and joint ventures .
5. Product development assets \u2013 Product development assets
represent direct costs incurred in the development of educational
programmes and titles prior to their publication. These costs are
recognised as current intangible assets where the title will
generate probable future economic benefits and costs can
be measured reliably.
Product development assets relating to content are amortised upon
publication of the title over estimated economic lives of seven years
or less, being an estimate of the expected operating lifecycle of the
title, with a higher proportion of the amortisation taken in the earlier
years. Product development assets relating to product platforms are
amortised over 10 years or less, being an estimate of the expected
useful life.
The assessment of the useful economic life and the recoverability
of product development assets involves judgement and is based
on historical trends and management estimation of future
potential sales.
Product development assets are assessed for impairment triggers
on an annual basis or when triggering events occur. The carrying
amount of product development assets is set out in note 20.
The investment in product development assets has been disclosed
as part of net cash generated from operating activities in the cash
flow statement (see note 33).
Other financial assets
Other financial assets are non-derivative financial assets classified
and measured at estimated fair value.
Marketable securities and cash deposits with maturities of greater
than three months are classified and subsequently measured at
fair value through profit and loss (FVTPL). They are remeasured at
each balance sheet date by using market data and the use of
established valuation techniques. Any movement in the fair value
is immediately recognised in finance income or finance costs in
the income statement.
Investments in the equity instruments of other entities are
classified and subsequently measured at fair value through other
comprehensive income (FVOCI). Changes in fair value are recorded
in equity in the fair value reserve via other comprehensive income.
On subsequent disposal of the asset, the net fair value gains or
losses are reclassified from the fair value reserve to retained
earnings. Any dividends received from equity investments classified
as FVOCI are recognised in the income statement unless they
represent a return of capital.
Investments in funds which have a limited life are classified and
subsequently measured at fair value through profit and loss (FVTPL).
Changes in fair value are included within net finance costs within the
income statement and excluded from adjusted earnings.
Inventories
Inventories are stated at the lower of cost and net realisable value.
Cost is determined using the weighted average method or an
approximation thereof, such as the first in first out (FIFO) method.
The cost of finished goods and work in progress comprises raw
materials, direct labour, other direct costs and related production
overheads. Net realisable value is the estimated selling price in the
ordinary course of business, less estimated costs necessary to make
the sale. Provisions are made for slow-moving and obsolete stock.
Goodwill is tested at least annually for impairment and carried at
cost less accumulated impairment losses. An impairment loss is
recognised to the extent that the carrying value of goodwill exceeds
the recoverable amount. The recoverable amount is the higher of
fair value less costs of disposal and value in use. These calculations
require the use of estimates in respect of forecast cash flows and
discount rates and significant management judgement in respect
of cash-generating unit (CGU) and cost allocation; impairment is a
key source of estimation uncertainty and has a significant risk of
resulting in a material adjustment to the carrying amount of relevant
assets within the next financial year. A summary of these assets by
CGU and a description of the key assumptions and sensitivities is
included in note 11.
Goodwill is allocated to aggregated CGUs for the purpose of
impairment testing. The allocation is made to those aggregated
CGUs that are expected to benefit from the business combination
in which the goodwill arose. Where there are changes to CGUs,
goodwill is reallocated to the new CGUs and aggregation of CGUs
using a relative value method.
Gains and losses on the disposal of an entity include the carrying
amount of goodwill relating to the entity sold.
2. Acquired software \u2013 Software separately acquired for internal
use is capitalised at cost. Software acquired in material business
combinations is capitalised at its fair value as determined by an
independent valuer. The assets are assessed for impairment triggers
on an annual basis or when triggering events occur. Acquired
software is amortised on a straight-line basis over its estimated
useful life of between three and eight years.
3. Internally developed software \u2013 Internal and external costs
incurred during the preliminary stage of developing computer
software for internal use are expensed as incurred. Internal and
external costs incurred to develop computer software for internal
use during the application development stage are capitalised if
the Group expects economic benefits from the development.
Capitalisation in the application development stage begins once
the Group can reliably measure the expenditure attributable to
the software development and has demonstrated its intention to
complete and use the software. Internally developed software is
amortised on a straight-line basis over its estimated useful life
of between three and ten years. The assets are assessed for
impairment triggers on an annual basis or when triggering
events occur.
4. Acquired intangible assets \u2013 Acquired intangible assets include
customer lists, contracts and relationships, trademarks and brands,
publishing rights, content, technology and software rights. These
assets are capitalised on acquisition at cost and included in intangible
assets. Intangible assets acquired in material business combinations
are capitalised at their fair value as determined by an independent
valuer. The valuation of these assets are a key source of estimation
uncertainty. Intangible assets are amortised over their estimated
useful lives of between two and 20 years, using an amortisation
method that reflects the pattern of their consumption. The assets
are assessed for impairment triggers on an annual basis or when
triggering events occur.
Notes to the consolidated financial statements continued
1a. Accounting policies continued
Royalty advances
Advances of royalties to authors are included within trade and other
receivables when the advance is paid less any provision required to
adjust the advance to its net realisable value. The realisable value of
royalty advances relies on a degree of management estimation in
determining the profitability of individual author contracts. If the
estimated realisable value of author contracts is overstated, this will
have an adverse effect on operating profits as these excess amounts
will be written off.
The recoverability of royalty advances is based upon an annual
detailed management review of the age of the advance, the future
sales projections for new authors and prior sales history of repeat
authors.
The royalty advance is expensed at the contracted or effective royalty
rate as the related revenues are earned. Royalty advances which will
be consumed within one year are held in current assets. Royalty
advances which will be consumed after one year are held in
non-current assets.
Cash and cash equivalents
Cash and cash equivalents in the cash flow statement include cash in
hand, deposits held on call with banks, other short-term highly liquid
investments with original maturities of three months or less, and
bank overdrafts. Bank overdrafts are included in borrowings in
current liabilities in the balance sheet.
Short-term deposits and marketable securities with maturities
of greater than three months do not qualify as cash and cash
equivalents and are reported as financial assets. Movements on
these financial assets are classified as cash flows from financing
activities in the cash flow statement where these amounts are
used to offset the borrowings of the Group or as cash flows from
investing activities where these amounts are held to generate an
investment return.
Share capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new
shares or options are shown in equity as a deduction, net of tax,
from the proceeds.
Where any Group company purchases the company\u2019s equity share
capital (treasury shares), the consideration paid, including any directly
attributable incremental costs, net of income taxes, is deducted from
equity attributable to the company\u2019s equity holders until the shares
are cancelled, reissued or disposed of. Where such shares are
subsequently sold or reissued, any consideration received, net
of any directly attributable transaction costs and the related
income tax effects, is included in equity attributable to the company\u2019s
equity holders.
Ordinary shares purchased under a buyback programme are
cancelled and the nominal value of the shares is transferred to
a capital redemption reserve.
Borrowings
Borrowings are recognised initially at fair value, which is proceeds
received net of transaction costs incurred. Borrowings are
subsequently stated at amortised cost with any difference between
the proceeds (net of transaction costs) and the redemption value
being recognised in the income statement over the period of the
borrowings using the effective interest method. Accrued interest is
included as part of borrowings.
Where a debt instrument is in a fair value hedging relationship,
an adjustment is made to its carrying value in the income statement
to reflect the hedged risk.
Where a debt instrument is in a net investment hedge relationship,
gains and losses on the effective portion of the hedge are recognised
in other comprehensive income.
Derivative financial instruments
Derivatives are recognised at fair value and remeasured at each
balance sheet date. The fair value of derivatives is determined by
using market data and the use of established estimation techniques
such as discounted cash flow and option valuation models.
For derivatives in a hedge relationship, the currency basis spread
is excluded from the designation as a hedging instrument.
Changes in the fair value of derivatives are recognised immediately in
finance income or costs. However, derivatives relating to borrowings
and certain foreign exchange contracts are designated as part of a
hedging transaction.
The accounting treatment is summarised as follows:
Typical reason
for designation
Reporting of gains
and losses on
effective portion
of the hedge
Reporting of
gains and losses
on disposal
Net investment hedge
The derivative creates a
foreign currency liability
which is used to hedge
changes in the value of a
subsidiary which
transacts in that
currency.
Recognised in other
comprehensive
income.
On the disposal
of foreign
operations or
subsidiaries, the
accumulated
value of gains and
losses reported
in other
comprehensive
income is
transferred to the
income
statement.
Fair value hedges
The derivative
transforms the interest
profile on debt from
fixed rate to floating
rate. Changes in the
value of the debt as a
result of changes in
interest rates and
foreign exchange rates
are offset by equal and
opposite changes in the
value of the derivative.
When the Group\u2019s debt
is swapped to floating
rates, the contracts used
are designated as fair
value hedges.
Gains and losses on
the derivative are
reported in finance
income or finance
costs. However, an
equal and opposite
change is made to
the carrying value of
the debt (a \u2018fair
value adjustment\u2019)
with the benefit/
cost reported in
finance income or
finance costs. The
net result should be
a zero charge on a
perfectly effective
hedge.
If the debt and
derivative are
disposed of, the
value of the
derivative and the
debt (including
the fair value
adjustment) are
reset to zero. Any
resultant gain or
loss is recognised
in finance income
or finance costs.
Non-hedge accounted contracts
These are not
designated as hedging
instruments. Typically,
these are short-term
contracts to convert
debt back to fixed rates
or foreign exchange
contracts where a
natural offset exists.
Recognised in the
income statement.
No hedge
accounting applies.
Taxation
Current tax is recognised at the amounts expected to be paid or
recovered under the tax rates and laws that have been enacted or
substantively enacted at the balance sheet date.
Deferred income tax is provided, using the balance sheet liability
method, on temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts. Deferred income
tax is determined using tax rates and laws that have been enacted or
substantively enacted by the balance sheet date and are expected to
apply when the related deferred tax asset is realised or the deferred
income tax liability is settled.
Deferred tax assets are recognised to the extent that it is probable
that future taxable profit will be available against which the
temporary differences can be utilised.
Deferred income tax is provided in respect of the undistributed
earnings of subsidiaries, associates and joint ventures other than
where it is intended that those undistributed earnings will not be
remitted in the foreseeable future.
Current and deferred tax are recognised in the income statement,
except when the tax relates to items charged or credited directly to
equity or other comprehensive income, in which case the tax is also
recognised in equity or other comprehensive income.
The Group is subject to income taxes in numerous jurisdictions.
Significant judgement is required in determining the estimates in
relation to the worldwide provision for income taxes. There are many
transactions and calculations for which the ultimate tax
determination is uncertain during the ordinary course of business.
The Group recognises tax provisions when it is considered probable
that there will be a future outflow of funds to a tax authority. The
provisions are based on management\u2019s best judgement of the
application of tax legislation and best estimates of future settlement
amounts (see note 7). Where the final tax outcome of these matters
is different from the amounts that were initially recorded, such
differences will impact the income tax and deferred tax provisions in
the period in which such determination is made.
Deferred tax assets and liabilities require management judgement
and estimation in determining the amounts to be recognised. In
particular, when assessing the extent to which deferred tax assets
should be recognised, significant judgement is used when
considering the timing of the recognition and estimation is used to
determine the level of future taxable income together with any future
tax planning strategies (see note 13).
Employee benefits
1. Pensions \u2013 The retirement benefit asset and obligation recognised
in the balance sheet represent the net of the present value of the
defined benefit obligation and the fair value of plan assets at the
balance sheet date. The defined benefit obligation is calculated
annually by independent actuaries using the projected unit credit
method. The present value of the defined benefit obligation is
determined by discounting estimated future cash flows using yields
on high-quality corporate bonds which have terms to maturity
approximating the terms of the related liability.
When the calculation results in a potential asset, the recognition
of that asset is limited to the asset ceiling \u2013 that is the present value
of any economic benefits available in the form of refunds from the
plan or a reduction in future contributions. Management uses
judgement to determine the level of refunds available from the
plan in recognising an asset.
The determination of the pension cost and defined benefit obligation
of the Group\u2019s defined benefit pension schemes depends on the
selection of certain assumptions, which include the discount rate,
inflation rate, salary growth and longevity (see note 25).
Actuarial gains and losses arising from experience adjustments and
changes in actuarial assumptions are charged or credited to equity
in other comprehensive income in the period in which they arise.
The service cost, representing benefits accruing over the year, is
included in the income statement as an operating cost. Net interest
is calculated by applying the discount rate to the net defined benefit
obligation and is presented as finance costs or finance income.
Obligations for contributions to defined contribution pension plans
are recognised as an operating expense in the income statement
as incurred.
2. Other post-retirement obligations \u2013 The expected costs of
post-retirement medical and life assurance benefits are accrued over
the period of employment, using a similar accounting methodology
as for defined benefit pension obligations. The liabilities and costs
relating to significant other post-retirement obligations are assessed
annually by independent qualified actuaries.
3. Share-based payments \u2013 The fair value of options or shares
granted under the Group\u2019s share and option plans is recognised
as an employee expense after taking into account the Group\u2019s best
estimate of the number of awards expected to vest. Fair value is
measured at the date of grant and is spread over the vesting period
of the option or share. The fair value of the options granted is
measured using an option model that is most appropriate to the
award. The fair value of shares awarded is measured using the
share price at the date of grant unless another method is more
appropriate. Any proceeds received are credited to share capital
and share premium when the options are exercised.
Provisions
Provisions are recognised if the Group has a present legal or
constructive obligation as a result of past events; it is more likely
than not that an outflow of resources will be required to settle the
obligation and the amount can be reliably estimated. Provisions are
discounted to present value where the effect is material.
Revenue recognition
The Group\u2019s revenue streams are courseware, assessments and
services. Courseware includes curriculum materials provided in
book form and/or via access to digital content. Assessments includes
test development, processing and scoring services provided to
governments, educational institutions, corporations and professional
bodies. Services includes the operation of schools, colleges and
universities, as well as the provision of online learning services in
partnership with universities and other academic institutions.
Revenue is recognised in order to depict the transfer of control
of promised goods and services to customers in an amount that
reflects the consideration to which we expect to be entitled in
exchange for those goods and services. This process begins with
the identification of our contract with a customer, which is generally
through a master services agreement, customer purchase order, or
a combination thereof. Within each contract, judgement is applied to
determine the extent to which activities within the contract represent
distinct performance obligations to be delivered and the total
amount of transaction price to which we expect to be entitled.
Notes to the consolidated financial statements continued
1a. Accounting policies continued
The transaction price determined is net of sales taxes, rebates and
discounts, and after eliminating sales within the Group. Where a
contract contains multiple performance obligations such as the
provision of supplementary materials or online access with
textbooks, revenue is allocated on the basis of relative standalone
selling prices. Where a contract contains variable consideration,
significant estimation is required to determine the amount to which
the Group is expected to be entitled.
Revenue is recognised on contracts with customers when or as
performance obligations are satisfied, which is the period or the
point in time where control of goods or services transfers to the
customer. Judgement is applied to determine first whether control
passes over time and if not, then the point in time at which control
passes. Where revenue is recognised over time, judgement is used
to determine the method which best depicts the transfer of
control. Where an input method is used, significant estimation is
required to determine the progress towards delivering the
performance obligation.
Revenue from the sale of books is recognised net of a provision for
anticipated returns. This provision is based primarily on historical
return rates, customer buying patterns and retailer behaviours
including stock levels (see note 24). If these estimates do not reflect
actual returns in future periods then revenues could be understated
or overstated for a particular period. When the provision for returns
is remeasured at each reporting date to reflect changes in estimates,
a corresponding adjustment is also recorded to revenue.
The Group may enter into contracts with another party in addition to
our customer. In making the determination as to whether revenue
should be recognised on a gross or net basis, the contract with the
customer is analysed to understand which party controls the relevant
good or service prior to transferring to the customer. This judgement
is informed by facts and circumstances of the contract in determining
whether the Group has promised to provide the specified good or
service or whether the Group is arranging for the transfer of the
specified good or service, including which party is responsible for
fulfilment, has discretion to set the price to the customer and is
responsible for inventory risk. On certain contracts, where the Group
acts as an agent, only commissions and fees receivable for services
rendered are recognised as revenue. Any third-party costs incurred
on behalf of the principal that are rechargeable under the
contractual arrangement are not included in revenue.
Income from recharges of freight and other activities which are
incidental to the normal revenue-generating activities is included in
other income.
Additional details on the Group\u2019s revenue streams are also included
in note 3.
Leases
The Group as a lessee
The Group assesses whether a contract is or contains a lease at the
inception of the contract. A contract is, or contains a lease, if the
contract conveys the right to control the use of an identified asset for
a period of time in exchange for consideration. The Group recognises
a right-of-use asset and a lease liability at the lease commencement
date with respect to all lease arrangements except for short-term
leases (leases with a lease term of 12 months or less) and leases
of low-value assets. For these leases, the lease payments are
recognised as an operating expense on a straight-line basis over
the term of the lease.
The right-of-use asset is initially measured at cost, comprising the
initial amount of the lease liability plus any initial direct costs incurred
and an estimate of costs to restore the underlying asset, less any
lease incentives received. The right-of-use asset is subsequently
depreciated using the straight-line method from the commencement
date to the earlier of the end of the useful life of the asset or the end
of the lease term. The Group applies IAS 36 to determine whether a
right-of-use asset is impaired. The lease liability is initially measured
at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in
the lease or, if that rate cannot be readily determined, the
incremental borrowing rate. The lease liability is measured at
amortised cost using the effective interest method. It is remeasured
when there is a change in future lease payments arising from a
change in an index or a rate or a change in the Group\u2019s assessment
of whether it will exercise an extension or termination option. When
the lease liability is remeasured, a corresponding adjustment is made
to the right-of-use asset.
Management uses judgement to determine the lease term where
extension and termination options are available within the lease.
The Group as a lessor
When the Group is an intermediate lessor, the head lease and
sublease are accounted for as two separate contracts. The head
lease is accounted for as per the lessee policy above. The sublease
is classified as a finance lease or operating lease by reference to the
right-of-use asset arising from the head lease. Where the lease
transfers substantially all the risks and rewards of ownership to the
lessee, the contract is classified as a finance lease; all other leases are
classified as operating leases. Rental income from operating leases
is recognised on a straight-line basis over the term of the relevant
lease. Amounts due from lessees under finance subleases are
recognised as receivables at the amount of the Group\u2019s net
investment in the leases discounted using the interest rate implicit in
the lease or, if that rate cannot be readily determined, the discount
rate used in the head lease.
Dividends
Final dividends are recorded in the Group\u2019s financial statements in
the period in which they are approved by the company\u2019s
shareholders. Interim dividends are recorded when paid.
Discontinued operations
A discontinued operation is a component of the Group\u2019s business
that represents a separate major line of business or geographical
area of operations that has been disposed of or meets the criteria
to be classified as held for sale.
When applicable, discontinued operations are presented in the
income statement as a separate line and are shown net of tax.
Assets and liabilities held for sale
Assets and liabilities are classified as held for sale and stated at the
lower of carrying amount and fair value less costs to sell if it is highly
probable that the carrying amount will be recovered principally
through a sale transaction rather than through continuing use.
No depreciation is charged in respect of non-current assets classified
as held for sale. Amounts relating to non-current assets and liabilities
held for sale are classified as discontinued operations in the income
statement where appropriate.
Trade receivables
Trade receivables are stated at fair value after provision for bad and
doubtful debts. Provisions for bad and doubtful debts are based on
the expected credit loss model. The \u2018simplified approach\u2019 is used with
the expected loss allowance measured at an amount equal to the
lifetime expected credit losses. A provision for anticipated future
sales returns is included within trade and other liabilities (also see
Revenue recognition policy).
1b. Comparative period revisions
In 2022, the Group identified an error related to the classification of
certain investments in unlisted securities. Investments that should
have been accounted for at fair value through profit and loss were
previously accounted for at fair value through other comprehensive
income. The investments are held at fair value within other financial
assets on the balance sheet. Having assessed both the quantitative
and qualitative factors, the Group has determined that the error did
not have a material impact on its previously issued consolidated
financial statements. However, the comparative financial statement
line items have been corrected to reflect the change in accounting
treatment. The fair value movements are now recorded within finance
income, rather than within other comprehensive income. All impacted
primary statements and related notes have been restated.
For the year ended 31 December 2021, the revision has resulted in
an increase in finance income and a corresponding increase in profit
before tax of \u00a320m, a reduction in the income tax benefit of \u00a32m, an
increase in profit for the year and profit for the year attributable to
equity holders of the company of \u00a318m, a decrease in the fair value
gain on other financial assets through other comprehensive income
of \u00a320m with an increase in the attributable tax of \u00a32m, resulting in a
decrease in other comprehensive income for the year of \u00a318m, and
no change in total comprehensive income for the year, all as
compared to amounts previously reported.
For the year ended 31 December 2020, the revision has resulted in
an increase in finance income and a corresponding increase in profit
before tax of \u00a326m, an increase in income tax expense of \u00a36m, an
increase in profit for the year and profit for the year attributable to
equity holders of the company of \u00a320m, a decrease in the fair value
gain on other financial assets through other comprehensive income
of \u00a326m with an increase in the attributable tax of \u00a36m, resulting in a
decrease in other comprehensive income for the year of \u00a320m, and
no change in total comprehensive income for the year, all as
compared to amounts previously reported.
The impact on both basic and diluted earnings per share attributable
to equity holders of the company is an increase of 2.4p for 2021 and
2.7p for 2020.
The restatement had no balance sheet impact except within equity.
Opening retained earnings as at 1 January 2020 have increased by
\u00a331m and closing retained earnings as at 31 December 2020 have
increased by \u00a357m and an equivalent decrease has been recorded
to the opening and closing fair value reserve. Closing retained
earnings at 31 December 2021 has increased by \u00a337m and an
equivalent decrease has been recorded to the closing fair value
reserve. The restatement has no impact on the carrying amount of
other financial assets in the balance sheet and has no impact on
reported net assets, cash flows or total equity. Accordingly, an additional
balance sheet as at 1 January 2020 has not been presented.
The fair value movements now presented in the income statements
are excluded from adjusted measures as described in note 8, as a
result there is no impact to any adjusted measures.
1c. Going concern
In assessing the Group\u2019s ability to continue as a going concern for the
period to 30 June 2024, the Board reviewed management\u2019s four-year
plan, which was used as the base case. The review included available
liquidity throughout the period and headroom against the Group\u2019s
two main covenants, which require net debt to EBITDA to be a
maximum of four times and interest cover to be at least three times.
At 31 December 2022, the Group had available liquidity of \u00a31.4bn,
comprising central cash balances and its undrawn $1.19bn Revolving
Credit Facility (RCF). In February 2023, the maximum RCF facility size
was reduced to $1bn and the model used reflects this change.
Significant liquidity and covenant headroom was observed
throughout the assessment period in this base model.
A severe but plausible scenario was analysed, where the Group is
impacted by all principal risks in both 2023 and 2024, adjusted for
probability weighting as well as other significant risks. For this and
other downside scenarios tested, the acquisition of PDRI is assumed
to be completed and a further capital allocation outflow of \u00a3350m is
modelled. In the severe but plausible scenario, adjusted operating
profit is reduced by around 30%, with a similar impact on operating
cashflow. Significant liquidity and covenant headroom was observed
throughout the assessment period even before any mitigation
actions which management would take if these downside risks were
to crystalise.
A reverse stress test was performed to identify the reduction in profit
required to cease to be a going concern at or before 30 June 2024.
This was achieved in the model through a covenant breach in June
2024 triggering repayment of the Group\u2019s debts. The model showed
that operating losses were required, with profits reduced by around
\u00a3750m per year in both 2023 and 2024. This significantly exceeded
the severe but plausible downside scenario. The Directors consider
this reverse stress test scenario to be implausible.
The Directors have confirmed that there are no material
uncertainties that cast doubt on the Group\u2019s going concern status
and that they have a reasonable expectation that the Group has
adequate resources to continue in operational existence beyond
30 June 2024. The consolidated financial statements have therefore
been prepared on a going concern basis.
1d. Climate change
The Group has assessed the impacts of climate change on the
Group\u2019s financial statements , including our commitment to achieving
net zero by 2030, and the actions the Group intends to take to
achieve those targets. The assessment did not identify any material
impact on the Group\u2019s significant judgements or estimates at 31
December 2022, or the assessment of going concern for the period
to June 2024 and the Group\u2019s viability over the next four years.
Specifically, we have considered the following areas:
\u2014 The physical and transition risks associated with climate change;
and
\u2014 The actions the Group is taking to meet its carbon reduction and
net zero targets.
As a result, the Group has assessed the impacts of climate change on
the financial statements, and in particular, on the following areas:
\u2014 The impact on the Group\u2019s future cash flows, and the resulting
impact that such adjustments to our future cash flows would
have on the outcome of the annual impairment testing of our
goodwill balances (see note 11 for further details), the recognition
of deferred tax assets and our assessment of going concern;
\u2014 The carrying value of the Group\u2019s assets, in particular the
recoverable amounts of inventories, product development assets,
intangible assets and property, plant and equipment; and
\u2014 Any changes to our estimates of the useful economic lives of
product development assets, intangible assets and property,
plant and equipment.
Notes to the consolidated financial statements continued
2. Segment information
On 8 March 2021, the Group announced a new strategy, which included a new management structure and operating model. As a result, the primary
operating segments reported to the Group\u2019s chief operating decision-maker, the Pearson Executive Management team, changed from 1 July 2021 to
reflect the new Group structure. There are five main global business divisions, which are each considered separate operating segments for
management and reporting purposes. These five divisions are Assessment & Qualifications, Virtual Learning, English Language Learning, Higher
Education and Workforce Skills. In addition, the International Courseware local publishing businesses, which were under strategic review, were being
managed as a separate division, known as Strategic Review. In 2022, some of the businesses from the Strategic Review division have been disposed of
(see note 31) and the decision was made to retain the English-speaking Canadian and Australian K12 courseware businesses. Both of these businesses
have been transferred from the Strategic Review division to the Assessment & Qualifications division to reflect changes to the management and
reporting structure. Comparative figures for 2021 and 2020 have been restated to reflect the move between segments, resulting in \u00a334m of sales
being transferred from the Strategic Review division to the Assessment & Qualifications division in 2021 and \u00a336m in 2020. The Group has separately
disclosed the results from the Penguin Random House associate to the point of disposal in April 2020.
The following describes the principal activities of the five main operating segments:
\u2014 Assessment & Qualifications \u2013 Pearson VUE, US Student Assessment, Clinical Assessment, UK GCSE and A Levels and International academic
qualifications and associated courseware including the English-speaking Canadian and Australian K-12 businesses;
\u2014 Virtual Learning \u2013 Virtual Schools and Online Program Management;
\u2014 English Language Learning \u2013 Pearson Test of English, Institutional Courseware and English Online Solutions;
\u2014 Workforce Skills \u2013 BTEC, GED, TalentLens, Faethm, Credly, Pearson College and Apprenticeships; and
\u2014 Higher Education \u2013 US, Canadian and International Higher Education Courseware businesses.
For more detail on the services and products included in each operating segment, refer to the strategic report.
All figures in \u00a3 millions Notes
2022
Assessment &
Qualifications
Virtual
Learning
English
Language
Learning
Workforce
Skills
Higher
Education
Strategic
Review
Penguin
Random
House Group
Sales 3 1,444 820 321 204 898 154 \u2013 3,841
Adjusted operating profit 258 70 25 (3) 91 15 \u2013 456
Cost of major restructuring (39) (29) (11) (7) (63) (1) \u2013 (150)
Intangible charges (14) (21) (6) (12) (3) \u2013 \u2013 (56)
UK Pension discretionary
increases (1) (1) \u2013 \u2013 (1) \u2013 \u2013 (3)
Other net gains and losses (2) (2) (11) \u2013 \u2013 39 \u2013 24
Operating profit/(loss) 202 17 (3) (22) 24 53 \u2013 271
Finance costs 6 (71)
Finance income 6 123
Profit before tax 323
Income tax 7 (79)
Profit for the year 244
Other segment items
Share of results of joint ventures
and associates 12 \u2013 (2) 4 (1) \u2013 \u2013 \u2013 1
Depreciation and impairment 10 63 31 7 6 26 3 \u2013 136
Amortisation and impairment 11, 20 139 77 44 27 175 20 \u2013 482
All figures in \u00a3 millions Notes
2021
Assessment &
Qualifications
Virtual
Learning
English
Language
Learning
Workforce
Skills
Higher
Education
Strategic
Review
Penguin
Random
House Group
1
Sales 3 1,238 713 238 172 849 218 \u2013 3,428
Adjusted operating profit 219 32 15 27 73 19 \u2013 385
Cost of major restructuring (48) (48) (27) (28) (63) \u2013 \u2013 (214)
Intangible charges (13) (25) (3) (7) (2) (1) \u2013 (51)
Other net gains and losses \u2013 \u2013 \u2013 (2) \u2013 65 \u2013 63
Operating profit/(loss) 158 (41) (15) (10) 8 83 \u2013 183
Finance costs 6 (68)
Finance income 6 62
Profit before tax 177
Income tax 7 1
Profit for the year 178
Other segment items
Share of results of joint ventures
and associates 12 \u2013 (1) 3 (1) \u2013 \u2013 \u2013 1
Depreciation and impairment 10 92 48 14 9 63 15 \u2013 241
Amortisation and impairment 11, 20 134 67 34 25 165 21 \u2013 446
1. Comparative balances have been restated to reflect the move between operating segments.
All figures in \u00a3 millions Notes
2020
Assessment &
Qualifications
Virtual
Learning
English
Language
Learning
Workforce
Skills
Higher
Education
Strategic
Review
Penguin
Random
House Group
1
Sales 3 1,118 692 218 163 956 250 \u2013 3,397
Adjusted operating profit 147 29 1 26 93 16 1 313
Cost of major restructuring \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013
Intangible charges (29) (30) (7) (8) (3) (3) \u2013 (80)
Other net gains and losses \u2013 \u2013 \u2013 \u2013 \u2013 (2) 180 178
Operating profit/(loss) 118 (1) (6) 18 90 11 181 411
Finance costs 6 (107)
Finance income 6 76
Profit before tax 380
Income tax 7 (50)
Profit for the year 330
Other segment items
Share of results of joint ventures
and associates \u2013 \u2013 4 \u2013 \u2013 \u2013 1 5
Depreciation and impairment 53 21 7 5 28 11 \u2013 125
Amortisation and impairment 154 64 34 24 167 29 \u2013 472
1. Comparative balances have been restated to reflect the move between operating segments.
Notes to the consolidated financial statements continued
The Group operates in the following main geographic areas:
All figures in \u00a3 millions
Sales Non-current assets
2022 2021 2020 2022 2021
UK 424 355 319 527 578
Other European countries 192 249 216 192 122
US 2,668 2,182 2,335 2,333 2,034
Canada 110 111 91 243 217
Asia Pacific 290 359 251 200 190
Other countries 157 172 185 17 18
Total 3,841 3,428 3,397 3,512 3,159
Sales are allocated based on the country in which the customer is located. This does not differ materially from the location where the order is received.
The geographical split of non-current assets is based on the subsidiary\u2019s country of domicile. This is not materially different to the location of the assets.
Non-current assets comprise investment property, property, plant and equipment, intangible assets and investments in joint ventures and associates.
2. Segment information continued
There were no material inter-segment sales in either 2022, 2021
or 2020.
Corporate costs are allocated to business segments on an
appropriate basis depending on the nature of the cost and therefore
the total segment result is equal to the Group operating profit.
For additional detailed information on the calculation of adjusted
operating profit as shown in the above tables, see pages 215-219
(Financial key performance indicators).
Adjusted operating profit is shown in the above tables as it is
the key financial measure used by management to evaluate the
performance of the Group. The measure also enables investors to
more easily, and consistently, track the underlying operational
performance of the Group and its business segments over time by
separating out those items of income and expenditure relating to
acquisition and disposal transactions, major restructuring
programmes and certain other items that are also not representative
of underlying performance, which are explained below and
reconciled in note 8.
Cost of major restructuring \u2013 In August 2022, the Group announced
a major restructuring programme to run in 2022. The programme
includes efficiencies in product and content, support costs,
technology and corporate property. The restructuring costs in 2022
of \u00a3150m mainly relate to staff redundancies and impairment of
right-of-use property assets. In 2021, restructuring costs of \u00a3214m
mainly related to the impairment of right-of-use property assets, the
write-down of product development assets and staff redundancies.
The 2022 charge includes the impact of updated assumptions
related to the recoverability of right-of-use assets made in 2021. The
costs of these restructuring programmes are significant enough to
exclude from the adjusted operating profit measure so as to better
highlight the underlying performance (see note 4). There was no
major restructuring in 2020.
Intangible charges \u2013 These represent charges relating to intangibles
acquired through business combinations. These charges are
excluded as they reflect past acquisition activity and do not
necessarily reflect the current year performance of the Group.
Intangible amortisation charges in 2022 were \u00a356m compared to a
charge of \u00a351m in 2021. This is due to increased amortisation from
recent acquisitions which is partially offset by a reduction in
amortisation from intangible assets at the end of their useful life and
recent disposals. In 2022 and 2021, intangible charges included no
impairment charges. In 2020, intangible charges were \u00a380m
including impairment charges of \u00a312m.
Other net gains and losses \u2013 These represent profits and losses on
the sale of subsidiaries, joint ventures, associates and other financial
assets and are excluded from adjusted operating profit as they
distort the performance of the Group as reported on a statutory
basis. Other net gains and losses also includes costs related to
business closures and acquisitions. Other net gains and losses in
2022 relate to the gains on the disposal of our international
courseware local publishing businesses in Europe, French-speaking
Canada and Hong Kong and a gain arising on a decrease in the
deferred consideration payable on prior year acquisitions, offset by a
loss on disposal of our international courseware local publishing
businesses in South Africa due to recycling of currency translation
adjustments and costs related to disposals and acquisitions. Other
net gains and losses in 2021 largely related to the disposal of PIHE
and the disposal of the K12 Sistemas business in Brazil offset by
costs related to the acquisition of Faethm and the wind down of
certain strategic review businesses. In 2020, they largely relate to
the sale of the remaining interest in Penguin Random House
(\u00a3180m gain).
UK pension discretionary increases - Charges in 2022 relate to
one-off pension increases awarded to certain cohorts of pensioners
in response to the cost of living crisis.
Adjusted operating profit should not be regarded as a complete
picture of the Group\u2019s financial performance. For example, adjusted
operating profit includes the benefits of major restructuring
programmes but excludes the significant associated costs, and
adjusted operating profit excludes costs related to acquisitions, and
the amortisation of intangibles acquired in business combinations,
but does not exclude the associated revenues. The Group\u2019s definition
of adjusted operating profit may not be comparable to other similarly
titled measures reported by other companies.
3. Revenue from contracts with customers
The following tables analyse the Group\u2019s revenue streams. Courseware includes curriculum materials provided in book form and/or via access
to digital content. Assessments includes integrated test development, processing and scoring services provided to governments, educational
institutions, corporations and professional bodies. Services includes the operation of schools, colleges and universities, including sistemas in Brazil,
until disposed, as well as the provision of online learning services in partnership with universities and other academic institutions. Comparative figures
for 2021 and 2020 have been restated to reflect the move between segments.
The Group derived revenue from the transfer of goods and services over time and at a point in time in the following major product lines:
All figures in \u00a3 millions
2022
Assessment &
Qualifications
Virtual
Learning
English
Language
Learning
Workforce
Skills
Higher
Education
Strategic
Review Total
Courseware
Products transferred at a point in time 64 \u2013 110 2 302 148 626
Products and services transferred over time 21 \u2013 25 \u2013 588 6 640
85 \u2013 135 2 890 154 1,266
Assessments
Products transferred at a point in time 169 \u2013 5 14 \u2013 \u2013 188
Products and services transferred over time 1,190 \u2013 138 142 \u2013 \u2013 1,470
1,359 \u2013 143 156 \u2013 \u2013 1,658
Services
Products transferred at a point in time \u2013 \u2013 29 \u2013 \u2013 \u2013 29
Products and services transferred over time \u2013 820 14 46 8 \u2013 888
\u2013 820 43 46 8 \u2013 917
Total 1,444 820 321 204 898 154 3,841
All figures in \u00a3 millions
2021
Assessment &
Qualifications
Virtual
Learning
English
Language
Learning
Workforce
Skills
Higher
Education
Strategic
Review Total
Courseware
Products transferred at a point in time 62 \u2013 109 \u2013 283 180 634
Products and services transferred over time 30 \u2013 26 \u2013 558 17 631
92 \u2013 135 \u2013 841 197 1,265
Assessments
Products transferred at a point in time 173 \u2013 6 16 \u2013 \u2013 195
Products and services transferred over time 973 \u2013 72 119 \u2013 \u2013 1,164
1,146 \u2013 78 135 \u2013 \u2013 1,359
Services
Products transferred at a point in time \u2013 \u2013 22 \u2013 \u2013 14 36
Products and services transferred over time \u2013 713 3 37 8 7 768
\u2013 713 25 37 8 21 804
Total 1,238 713 238 172 849 218 3,428
Notes to the consolidated financial statements continued
3. Revenue from contracts with customers continued
All figures in \u00a3 millions
2020
Assessment &
Qualifications
Virtual
Learning
English
Language
Learning
Workforce
Skills
Higher
Education
Strategic
Review Total
Courseware
Products transferred at a point in time 66 \u2013 106 \u2013 313 185 670
Products and services transferred over time 27 \u2013 24 \u2013 630 15 696
93 \u2013 130 \u2013 943 200 1,366
Assessments
Products transferred at a point in time 138 \u2013 3 7 \u2013 \u2013 148
Products and services transferred over time 887 \u2013 61 123 \u2013 \u2013 1,071
1,025 \u2013 64 130 \u2013 \u2013 1,219
Services
Products transferred at a point in time \u2013 \u2013 22 \u2013 \u2013 22 44
Products and services transferred over time \u2013 692 2 33 13 28 768
\u2013 692 24 33 13 50 812
Total 1,118 692 218 163 956 250 3,397
a. Nature of goods and services
The following is a description of the nature of the Group\u2019s
performance obligations within contracts with customers broken
down by revenue stream, along with significant judgements and
estimates made within each of those revenue streams.
Courseware
KE
Key areas of estimation
The level of provisions required for anticipated returns is
estimated based on historical experience, customer buying
patterns and retailer behaviours including stock levels.
Revenue is generated from customers through the sales of print and
digital courseware materials to schools, bookstores and direct to
individual learners. Goods and services may be sold separately
or purchased together in bundled packages. The goods and
services included in bundled arrangements are considered distinct
performance obligations, except for where Pearson provides both a
licence of intellectual property and an ongoing hosting service.
As the licence of intellectual property is only available with the
concurrent hosting service, the licence is not treated as a distinct
performance obligation separate from the hosting service.
The transaction price is allocated between distinct performance
obligations on the basis of their relative standalone selling prices.
In determining the transaction price, variable consideration exists
in the form of discounts and anticipated returns. Discounts reduce
the transaction price on a given transaction. A provision for
anticipated returns is made based primarily on historical return rates,
customer buying patterns and retailer behaviours including stock
levels (see note 24). If these estimates do not reflect actual returns in
future periods then revenues could be understated or overstated for
a particular period. Variable consideration as described above is
determined using the expected value approach. The sales return
liability at the end of 2022 was \u00a353m (2021: \u00a383m; 2020: \u00a386m). This
represents 8% of courseware sales transferred at a point in time.
While payment for these goods and services generally occurs at the
start of these arrangements, the length of time between payment
and delivery of the performance obligations is generally short-term in
nature or the reason for early payment relates to reasons other than
financing, including customers securing a vendor in a longer-term
arrangement or the transfer of goods or services is at the discretion
of the customer. For these reasons and the use of the practical
expedient on short-term financing, significant financing components
are not recognised within Courseware transactions.
Revenue from the sale of physical books is recognised at a point in
time when control passes. This is generally at the point of shipment
when title passes to the customer, when the Group has a present
right to payment and the significant risks and rewards of ownership
have passed to the customer. Revenue from physical books sold
through the direct print rental method is recognised over the rental
period, as the customer is simultaneously receiving and consuming
the benefits of this rental service through the passage of time.
Revenue from the sale of digital courseware products is recognised
on a straight-line basis over the subscription period, unless hosted
by a third-party or representative of a downloadable product, in
which case Pearson has no ongoing obligation and recognises
revenue when control transfers as the customer is granted access to
the digital product.
Revenue from the sale of \u2018off-the-shelf\u2019 software is recognised on
delivery or on installation of the software where that is a condition
of the contract. In certain circumstances, where installation is
complex, revenue is recognised when the customer has completed
their acceptance procedures.
Assessments
Revenue is primarily generated from multi-year contractual
arrangements related to large-scale assessment delivery, such as
contracts to process qualifying tests for individual professions and
government departments, and is recognised as performance occurs.
Under these arrangements, while the agreement spans multiple
years, the contract duration has been determined to be each
testing cycle based on contract structure, including clauses
regarding termination.
While in some cases the customer may have the ability to terminate
during the term for convenience, significant financial or qualitative
barriers exist limiting the potential for such terminations in the
middle of a testing cycle.
Within each testing cycle, a variety of service activities are performed
such as test administration, delivery, scoring, reporting, item
development, operational services and programme management.
These services are not treated as distinct in the context of the
customer contract as Pearson provides an integrated managed
service offering and these activities are accounted for together as
one comprehensive performance obligation.
Within each testing cycle, the transaction price may contain both
fixed and variable amounts. Variable consideration within these
transactions primarily relates to expected testing volumes to be
delivered in the cycle. The assumptions, risks and uncertainties
inherent to long-term contract accounting can affect the amounts
and timing of revenue and related expenses reported. Variable
consideration is measured using the expected value method, except
where amounts are contingent upon a future event\u2019s occurrence,
such as performance bonuses. Such event-driven contingency
payments are measured using the most likely amount approach. In
estimating and constraining variable consideration, historical
experience, current trends and local market conditions are
considered. To the extent that a higher degree of uncertainty exists
regarding variable consideration, these amounts are excluded from
the transaction price and recognised when the uncertainty is
reasonably removed.
Customer payments are generally defined in the contract through a
payment schedule, which may require customer acceptance for
services rendered. Pearson has a history of providing satisfactory
services which are accepted by the customer. While a delay between
rendering of services and payment may exist, payment terms are
within 12 months and the Group has elected to use the practical
expedient available in IFRS 15 \u2018Revenue from Contracts with
Customers\u2019 and not identify a significant financing component
on these transactions.
Revenue is recognised for Assessment contracts over time as the
customer is benefiting as performance takes place through a
continuous transfer of control to the customer. This continuous
transfer of control to the customer is supported by clauses in the
contracts which may allow the customer to terminate for
convenience, compensate us for work performed to date, and take
possession of work in process.
As control transfers over time, revenue is recognised based on the
extent of progress towards completion of the performance
obligation. The selection of the method to measure progress towards
completion requires judgement and is based on the nature of the
services provided. Revenue is recognised on a percentage of costs
basis, calculated using the proportion of the total estimated costs
incurred to date. From 2021, the proportion of estimated costs
incurred to date was primarily based on historical cost analysis for
similar groups of contracts, with regular true-ups to contract costs
throughout the contract period. Previously, the proportion of
estimated costs incurred to date was based on individual contract
analysis. The change in input methodology did not result in a material
impact on revenue recognition. Percentage of completion is used to
recognise the transfer of control of services provided as these
services are not provided evenly throughout the testing cycle and
involve varying degrees of effort during the contract term.
Losses on contracts are recognised in the period in which the loss
first becomes foreseeable. Contract losses are determined to be the
amount by which estimated total costs of the contract exceed the
estimated total revenues that will be generated.
In Assessments contracts driven primarily by transactions directly to
end users, Pearson\u2019s main obligation to the customer involves test
delivery and scoring. Test delivery and scoring are defined as a single
performance obligation delivered over time whether the test is
subsequently manually scored or digitally scored on the day of the
assessment. Customers may also purchase print and digital
supplemental materials. Print products in this revenue stream are
recognised at a point in time when control passes to the customer
upon shipment. Recognition of digital revenue will occur based on
the extent of Pearson\u2019s ongoing hosting obligation.
Notes to the consolidated financial statements continued
3. Revenue from contracts with customers continued
Services
Revenue is primarily generated from multi-year contractual
arrangements related to large-scale educational service delivery
to academic institutions, such as schools and higher education
universities. Under these arrangements, while an agreement may
span multiple years, the contract duration has been determined to
be each academic period based on the structure of contracts,
including clauses regarding termination. While in some cases the
customer may have the ability to terminate during the term for
convenience, significant financial or qualitative barriers exist
limiting the potential for such terminations in the middle of an
academic period. The academic period for this customer base is
normally an academic year for schools and a semester for higher
education universities.
Within each academic period, a variety of services are provided such
as programme development, student acquisition, education
technology and student support services. These services are not
distinct in the context of the customer contract as Pearson provides
an integrated managed service offering and these activities are
accounted for together as a comprehensive performance obligation.
Where Services are provided to university customers, volume and
transaction price are fixed at the start of the semester. Where
Services are provided to school customers, the transaction price may
contain both fixed and variable amounts which require estimation
during the academic period. Estimation is required where
consideration is based upon average enrolments or other metrics
which are not known at the start of the academic year. Variable
consideration is measured using the expected value method.
Historical experience, current trends, local circumstances and
customer-specific funding formulas are considered in estimating and
constraining variable consideration. To the extent that a higher
degree of uncertainty exists regarding variable consideration, these
amounts are excluded from the transaction price and recognised
when the uncertainty is reasonably removed.
Customer payments are generally defined in the contract as
occurring shortly after invoicing. Where there is a longer payment
term offered to a customer through a payment schedule, payment
terms are within 12 months and the Group has elected to use the
practical expedient available in IFRS 15 and not identify a significant
financing component on these transactions.
Revenue is recognised for Service contracts over time as the
customer is benefiting as performance takes place through a
continuous transfer of control to the customer. This continuous
transfer of control to the customer is supported by clauses in the
contracts which may allow the customer to terminate for
convenience, compensate for work performed to date, and take
possession of work in process.
As control transfers over time, revenue is recognised based on
the extent of progress towards completion of the performance
obligation. The selection of the method to measure progress towards
completion requires judgement and is based on the nature of the
products or services provided. Within the comprehensive service
obligation, the timing of services occurs relatively evenly over each
academic period and, as such, time elapsed is used to recognise the
transfer of control to the customer on a straight-line basis.
Losses on contracts are recognised in the period in which the loss
first becomes foreseeable. Contract losses are determined to be the
amount by which estimated total costs of the contract exceed the
estimated total revenues that will be generated.
In cases of optional or add-on purchases, institutions may purchase
physical goods priced at their standalone value, which are accounted
for separately and recognised at the point in time when control
passes to the customer upon shipment.
b. Disaggregation of revenue
The tables in notes 2 and 3 show revenue from contracts with
customers disaggregated by operating segment, geography and
revenue stream. These disaggregation categories are appropriate as
they represent the key groupings used in managing and evaluating
underlying performance of each of the businesses. The categories
also reflect groups of similar types of transactional characteristics,
among similar customers, with similar accounting conclusions.
c. Contract balances
Transactions within the Courseware revenue stream generally entail customer billings at or near the contract\u2019s inception and accordingly Courseware
deferred income balances are primarily related to subscription performance obligations to be delivered over time.
Transactions within the Assessments and Services revenue streams generally entail customer billings over time based on periodic intervals, progress
towards milestones or enrolment census dates. As the performance obligations within these arrangements are delivered over time, the extent of
accrued income or deferred income will ultimately depend upon the difference between revenue recognised and billings to date.
Refer to note 22 for opening and closing balances of accrued income. Refer to note 24 for opening and closing balances of deferred income. Revenue
recognised during the period from changes in deferred income was driven primarily by the release of revenue over time from digital subscriptions.
d. Contract costs
The Group capitalises incremental costs to obtain contracts with customers where it is expected these costs will be recoverable. Incremental costs to
obtain contracts with customers are considered those which would not have been incurred if the contract had not been obtained. For the Group,
these costs relate primarily to sales commissions. The Group has elected to use the practical expedient as allowable by IFRS 15 whereby such costs will
be expensed as incurred where the expected amortisation period is one year or less. Where the amortisation period is greater than one year, these
costs are amortised over the contract term on a systematic basis consistent with the transfer of the underlying goods and services within the contract
to which these costs relate, which will generally be on a rateable basis.
The Group does not recognise any material costs to fulfil contracts with customers as these types of activities are governed by other
accounting standards.
There were no deferred contract costs in 2022, 2021 or 2020.
e. Remaining transaction price
The below table depicts the remaining transaction price on unsatisfied or partially unsatisfied performance obligations from contracts with customers.
All figures in \u00a3 millions
2022
Sales
Deferred
income
Committed
sales
Total
remaining
transaction
price 2023 2024
2025
and later
Courseware
Products transferred at a point in time 626 1 \u2013 1 1 \u2013 \u2013
Products and services transferred over time 640 95 \u2013 95 56 14 25
Assessments
Products transferred at a point in time 188 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013
Products and services transferred over time 1,470 262 472 734 524 206 4
Services
Products transferred at a point in time 29 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013
Products and services transferred over time \u2013
subscriptions 351 20 7 27 27 \u2013 \u2013
Products and services transferred over time \u2013 other
ongoing performance obligations 537 22 225 247 247 \u2013 \u2013
Total 3,841 400 704 1,104 855 220 29
Notes to the consolidated financial statements continued
3. Revenue from contracts with customers continued
All figures in \u00a3 millions
2021
Sales
Deferred
income
Committed
sales
Total
remaining
transaction
price 2022 2023
2024
and later
Courseware
Products transferred at a point in time 634 1 \u2013 1 1 \u2013 \u2013
Products and services transferred over time 631 93 \u2013 93 60 11 22
Assessments
Products transferred at a point in time 195 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013
Products and services transferred over time 1,164 255 442 697 503 191 3
Services
Products transferred at a point in time 36 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013
Products and services transferred over time \u2013 subscriptions 290 13 10 23 23 \u2013 \u2013
Products and services transferred over time \u2013 other ongoing
performance obligations 478 24 220 244 244 \u2013 \u2013
Total 3,428 386 672 1,058 831 202 25
All figures in \u00a3 millions
2020
Sales
Deferred
income
Committed
sales
Total
remaining
transaction
price 2021 2022
2023
and later
Courseware
Products transferred at a point in time 670 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013
Products and services transferred over time 696 105 14 119 84 14 21
Assessments
Products transferred at a point in time 148 1 \u2013 1 1 \u2013 \u2013
Products and services transferred over time 1,071 217 413 630 426 203 1
Services
Products transferred at a point in time 44 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013
Products and services transferred over time \u2013 subscriptions 323 18 10 28 27 1 \u2013
Products and services transferred over time \u2013 other ongoing
performance obligations 445 18 195 213 213 \u2013 \u2013
Total 3,397 359 632 991 751 218 22
Committed sales amounts are equal to the transaction price from contracts with customers, excluding those amounts previously recognised
as revenue and amounts currently recognised in deferred income. The total of committed sales and deferred income is equal to the remaining
transaction price. Time bands stated above represent the expected timing of when the remaining transaction price will be recognised as revenue.
4. Operating expenses
All figures in \u00a3 millions 2022 2021 2020
By function:
Cost of goods sold 2,046 1,747 1,767
Operating expenses
Distribution costs 61 62 59
Selling, marketing and product development costs 564 521 572
Administrative and other expenses 823 802 816
Restructuring costs 150 214 \u2013
Other income (49) (37) (45)
Total net operating expenses 1,549 1,562 1,402
Other net gains and losses (24) (63) (178)
Total 3,571 3,246 2,991
Other income includes freight income and sublet income. Included in administrative and other expenses are research and efficacy costs of \u00a310m
(2021: \u00a312m; 2020: \u00a311m). Other net gains in 2022, largely relate to the gain on the sales of certain businesses (see note 31) and a gain arising on a
decrease in the deferred consideration payable on prior year acquisitions, offset by costs related to disposals and acquisitions. In 2021, other net gains
and losses largely relate to the sale of interests in PIHE in South Africa and the school business in Brazil. In 2020, other net gains and losses largely
relate to the sale of the remaining interest in Pearson Random House (\u00a3180m gain).
In August 2022, the Group announced a major restructuring programme to run in 2022. The programme includes efficiencies in product and content,
support costs, technology and corporate property. The restructuring costs in 2022 of \u00a3150m mainly relate to severance and impairment of right-of-use
property assets. In March 2021, the Group announced a major restructuring programme to run in 2021, principally comprising the reorganisation
of the Group into five global business divisions and the simplification of the Group\u2019s property portfolio. The costs of these programmes have been
excluded from adjusted operating profit so as to better highlight the underlying performance (see note 8). An analysis of major restructuring costs
are as follows:
All figures in \u00a3 millions 2022 2021 2020
By nature:
Product costs 11 19 \u2013
Employee costs 73 32 \u2013
Depreciation and impairment of non-current assets 51 145 \u2013
Property and facilities 7 11 \u2013
Technology and communications 1 3 \u2013
Professional and outsourced services 7 4 \u2013
Total restructuring \u2013 operating expenses 150 214 \u2013
Notes to the consolidated financial statements continued
4. Operating expenses continued
All figures in \u00a3 millions Notes 2022 2021 2020
By nature:
Royalties expensed 194 185 191
Other product costs 412 353 349
Employee benefit expense 5 1,605 1,365 1,337
Contract labour 73 69 67
Employee-related expense 52 21 30
Promotional costs 268 239 233
Depreciation and impairment of property, plant and equipment and investment property 10 136 241 125
Amortisation and impairment of intangible assets \u2013 product development 20 303 279 280
Amortisation and impairment of intangible assets \u2013 software 11 125 117 112
Amortisation and impairment of intangible assets \u2013 other 11 54 50 80
Property and facilities 102 124 85
Technology and communications 221 215 216
Professional and outsourced services 501 477 498
Other general and administrative costs 76 58 71
Costs capitalised (478) (447) (460)
Other net gains and losses (24) (63) (178)
Other income (49) (37) (45)
Total 3,571 3,246 2,991
During the year the Group obtained the following services from the Group\u2019s auditors, which changed to EY in 2022 and was PwC in 2021 and 2020:
All figures in \u00a3 millions 2022 2021 2020
The audit of parent company and consolidated financial statements 6 5 5
The audit of the company\u2019s subsidiaries 1 2 2
Total audit fees 7 7 7
Audit-related and other assurance services \u2013 \u2013 \u2013
Other non-audit services \u2013 \u2013 \u2013
Total other services \u2013 \u2013 \u2013
Total non-audit services \u2013 \u2013 \u2013
Total 7 7 7
Reconciliation between audit and non-audit service fees is shown below:
All figures in \u00a3 millions 2022 2021 2020
Group audit fees including fees for attestation under section 404 of the Sarbanes-Oxley Act 7 7 7
Non-audit fees \u2013 \u2013 \u2013
Total 7 7 7
Fees for attestation under section 404 of the Sarbanes-Oxley Act are allocated between fees payable for the audits of consolidated and
subsidiary accounts.
5. Employee information
All figures in \u00a3 millions Notes 2022 2021 2020
Employee benefit expense
Wages and salaries (including termination costs) 1,382 1,180 1,152
Social security costs 113 95 96
Share-based payment costs 26 35 28 29
Retirement benefits \u2013 defined contribution plans 25 46 37 47
Retirement benefits \u2013 defined benefit plans 25 29 25 13
Total 1,605 1,365 1,337
An additional \u00a33m of share-based payment costs (2021: \u00a3nil; 2020: \u00a3nil) in respect of remuneration for post-acquisition services for recent acquisitions
is included in other net gains and losses in the income statement.
The details of the emoluments of the Directors of Pearson plc are shown in the report on Directors\u2019 remuneration.
Average number employed 2022 2021 2020
Employee numbers
UK 3,244 3,395 3,304
Other European countries 809 878 886
US 11,357 11,757 11,432
Canada 522 593 648
Asia Pacific 3,369 2,738 2,812
Other countries 1,137 1,383 2,109
Total 20,438 20,744 21,191
6. Net finance costs
All figures in \u00a3 millions Notes 2022 2021
1
2020
1
Interest payable on financial liabilities at amortised cost and associated derivatives (32) (30) (31)
Interest on lease liabilities (25) (27) (41)
Net foreign exchange losses \u2013 \u2013 (6)
Interest on deferred and contingent consideration (5) \u2013 \u2013
Interest on tax provisions (7) (11) (7)
Derivatives not in a hedge relationship (2) \u2013 (22)
Finance costs (71) (68) (107)
Interest receivable on financial assets at amortised cost 18 5 9
Interest on lease receivables 5 6 9
Net finance income in respect of retirement benefits 25 9 4 6
Fair value remeasurement of disposal proceeds \u2013 6 26
Fair value movements on investments held at fair value 28 20 26
Net foreign exchange gains 1 1 \u2013
Interest on tax provisions 35 \u2013 \u2013
Derivatives not in a hedge relationship 27 20 \u2013
Finance income 123 62 76
Net finance income/(costs) 52 (6) (31)
Analysed as:
Net interest payable reflected in adjusted earnings (1) (57) (61)
Other net finance income 53 51 30
Net finance income/(costs) 52 (6) (31)
1. Comparative balances have been restated \u2013 see Note 1b.
Net movement in the fair value of hedges is further explained in note 16. Derivatives not in a hedge relationship include fair value movements in the
interest rate and cross-currency interest rate swaps. For further information on adjusted measures above, see note 8.
Notes to the consolidated financial statements continued
7. Income tax
All figures in \u00a3 millions Notes 2022 2021
1
2020
1
Current tax
Charge in respect of current year (127) (103) (18)
Adjustments in respect of prior years 18 (12) 4
Total current tax charge (109) (115) (14)
Deferred tax
In respect of temporary differences 29 103 (34)
Other adjustments in respect of prior years 1 13 (2)
Total deferred tax credit/(charge) 13 30 116 (36)
Total tax (charge)/credit (79) 1 (50)
1. Comparative balances have been restated \u2013 see Note 1b.
The adjustments in respect of prior years in 2022 is primarily due to movements in provisions for tax uncertainties, whilst in 2021 and 2020 the
differences primarily arise from revising the previous year\u2019s reported tax provision to reflect the tax returns subsequently filed. This results in a change
between deferred and current tax as well as an absolute benefit to the total tax charge. The tax on the Group\u2019s profit before tax differs from the
theoretical amount that would arise using the UK tax rate as follows:
All figures in \u00a3 millions 2022 2021 2020
Profit before tax 323 177 380
Tax calculated at UK rate (2022: 19%; 2021: 19%; 2020: 19%) (62) (34) (72)
Effect of overseas tax rates (12) (24) (7)
Effect of UK rate change 3 25 (5)
Joint venture and associate income reported net of tax \u2013 \u2013 1
Intra-group financing benefit \u2013 7 14
Net expense not subject to tax (9) (9) (7)
Gains and losses on sale of businesses not subject to tax 2 4 21
Unrecognised tax losses 3 9 (21)
Benefit from changes in local tax law \u2013 11 \u2013
Benefit from US accounting method changes \u2013 11 \u2013
Movement in provisions for tax uncertainties - current year (23) \u2013 24
Adjustments in respect of prior years - movement in provisions for tax uncertainties 13 \u2013 \u2013
Adjustments in respect of prior years - other 6 1 2
Total tax (charge)/credit (79) 1 (50)
UK (41) 27 23
Overseas (38) (26) (73)
Total tax (charge)/credit (79) 1 (50)
Tax rate reflected in earnings 24.5% (0.6)% 13.2%
1. Comparative balances have been restated \u2013 see Note 1b.
KJ
Key judgements
The application of tax legislation in relation to provisions for
uncertain tax positions.
KE
Key areas of estimation
The level of provisions required in relation to uncertain tax
positions is complex and each matter is separately assessed.
The estimation of future settlement amounts is based on a
number of factors including the status of the unresolved
matter, clarity of legislation, range of possible outcomes and
the statute of limitations.
Included in net expense not subject to tax are foreign taxes not
creditable, the tax impact of share-based payments and other
expenses not deductible.
Factors which may affect future tax charges include changes in
tax legislation, transfer pricing regulations, the level and mix
of profitability in different countries, and settlements with
tax authorities.
The movement in provisions for tax uncertainties primarily reflects releases due to the expiry of relevant statutes of limitation, settlement of certain
audits and the establishment of provisions for new uncertain tax positions, primarily the potential State Aid exposure offset against the release of US
provisions following the expiry of the statute of limitations for certain periods. The current tax liability of \u00a343m (2021: \u00a3125m; 2020: \u00a384m) includes
\u00a328m (2021: \u00a3104m; 2020: \u00a3104m) of provisions for tax uncertainties principally in respect of several matters in the US and the UK.
The Group is currently under audit in several countries, and the timing of any resolution of these audits is uncertain. In most countries, tax years up to
and including 2017 are now statute barred from examination by tax authorities, however, a balance of \u00a33m relates to certain remaining open issues.
Of the remaining \u00a325m balance, \u00a31m relates to 2018, \u00a314m to 2019, \u00a35m to 2020, \u00a33m to 2021 and \u00a32m to 2022. The tax authorities may take a
different view from management and the final liability may be greater than provided.
The matters provided for include a provision of \u00a363m related to the potential State Aid exposure and the potential disallowance of intra-group charges.
In relation to the potential State Aid exposure, a payment has been made in relation to the maximum potential exposure with the provision of \u00a363m
offset against this resulting in a \u00a341m non-current tax debtor.
Contingent liabilities relating to tax are disclosed in note 34.
The tax rate reflected in adjusted earnings is calculated as follows:
All figures in \u00a3 millions 2022 2021 2020
Profit before tax 323 177 380
Adjustments:
Cost of major restructuring 150 214 \u2013
Other net gains and losses (24) (63) (178)
Intangible charges 56 51 80
UK Pension discretionary increases 3 \u2013 \u2013
Other net finance income (53) (51) (30)
Adjusted profit before tax 455 328 252
Total tax credit/(charge) (79) 1 (50)
Adjustments:
Tax benefit on cost of major restructuring (37) (47) \u2013
Tax charge on other net gains and losses 10 14 3
Tax benefit on intangible charges (11) (12) (22)
Tax benefit on UK pensions discretionary increases (1) \u2013 \u2013
Tax charge on other net finance costs 13 8 10
Tax amortisation benefit on goodwill and intangibles 16 8 24
Benefit from changes in local tax law \u2013 (11) \u2013
Tax benefit on UK tax rate change (1) (25) \u2013
Other tax items 19 \u2013 \u2013
Adjusted tax charge (71) (64) (35)
Tax rate reflected in adjusted earnings 15.6% 19.5% 13.7%
1. Comparative balances have been restated \u2013 see Note 1b.
For further information on adjusted measures above, see note 8.
The tax benefit/(charge) recognised in other comprehensive income is as follows:
All figures in \u00a3 millions 2022 2021 2020
Net exchange differences on translation of foreign operations 4 10 (13)
Fair value gain on other financial assets 1 (1) \u2013
Remeasurement of retirement benefit obligations (12) (61) 2
(7) (52) (11)
1. Comparative balances have been restated \u2013 see Note 1b.
Notes to the consolidated financial statements continued
8. Earnings per share
Basic earnings per share is calculated by dividing the profit or loss
attributable to equity shareholders of the company (earnings) by the
weighted average number of ordinary shares in issue during the year,
excluding ordinary shares purchased by the company and held as
treasury shares.
Diluted earnings per share is calculated by adjusting the weighted
average number of ordinary shares to take account of all dilutive
potential ordinary shares and adjusting the profit attributable,
if applicable, to account for any tax consequences that might
arise from conversion of those shares.
Certain contingently issuable shares vested on 31 December 2022
but have not yet been issued, these shares are considered dilutive
for 2022 but do not materially impact basic EPS.
All figures in \u00a3 millions 2022 2021
1
2020
1
Earnings for the year 244 178 330
Non-controlling interest (2) (1) \u2013
Earnings attributable to equity shareholders 242 177 330
Weighted average number of shares (millions) 738.1 754.1 755.4
Effect of dilutive share options (millions) 3.9 5.0 \u2013
Weighted average number of shares (millions) for diluted earnings 742.0 759.1 755.4
Earnings per share (in pence per share)
Basic 32.8p 23.5p 43.7p
Diluted 32.6p 23.3p 43.7p
1. Comparative balances have been restated \u2013 see Note 1b.
Adjusted
For additional detailed information on the calculation of adjusted
measures, see pages 215-219 (Financial key performance indicators).
See note 2 for details of specific items excluded from or included in
adjusted operating profit in 2022, 2021 and 2020.
In order to show results from operating activities on a consistent
basis, an adjusted earnings per share is presented. The Group\u2019s
definition of adjusted earnings per share may not be comparable
with other similarly titled measures reported by other companies.
Adjusted earnings is a non-GAAP (non-statutory) financial measure
and is included as it is a key financial measure used by management
to evaluate the performance of the Group. The measure also enables
investors to more easily, and consistently, track the underlying
operational performance of the Group and its business segments
over time by separating out those items of income and expenditure
relating to acquisition and disposal transactions, major restructuring
programmes and certain other items that are also not representative
of underlying performance.
Adjusted earnings per share is calculated as adjusted earnings
divided by the weighted average number of shares in issue on an
undiluted basis. The following items are excluded from or included
in adjusted earnings:
Cost of major restructuring \u2013 In August 2022, the Group announced
a major restructuring programme to run in 2022. The programme
includes efficiencies in product and content, support costs,
technology and corporate property. The restructuring costs in 2022
of \u00a3150m mainly relate to staff redundancies and impairment of
right-of-use property assets. The 2022 charge includes the impact of
updated assumptions related to the recoverability of right-of-use
assets made in 2021. In 2021, restructuring costs of \u00a3214m mainly
related to the impairment of right-of-use property assets, the
write-down of product development assets and staff redundancies.
The costs of these restructuring programmes are significant enough
to exclude from the adjusted operating profit measure so as to
better highlight the underlying performance (see note 4). There was
no major restructuring in 2020.
Intangible charges \u2013 These represent charges relating to intangibles
acquired through business combinations. These charges are
excluded as they reflect past acquisition activity and do not
necessarily reflect the current year performance of the Group.
Intangible amortisation charges in 2022 were \u00a356m compared to a
charge of \u00a351m in 2021. This is due to increased amortisation from
recent acquisitions which is partially offset by a reduction in
amortisation from intangible assets at the end of their useful life and
recent disposals. In 2022 and 2021, intangible charges included no
impairment charges. In 2020, intangible charges were \u00a380m
including impairment charges of \u00a312m.
Other net gains and losses \u2013 These represent profits and losses on
the sale of subsidiaries, joint ventures, associates and other financial
assets and are excluded from adjusted operating profit as they
distort the performance of the Group as reported on a statutory
basis. Other net gains and losses also includes costs related to
business closures and acquisitions. Other net gains and losses in
2022 relate to the gains on the disposal of our international
courseware local publishing businesses in Europe, French-speaking
Canada and Hong Kong and a gain arising on a decrease in the
deferred consideration payable on prior year acquisitions, offset
by a loss on disposal of our international courseware local publishing
businesses in South Africa due to recycling of currency translation
adjustments and costs related to disposals and acquisitions. Other
net gains and losses in 2021 largely related to the disposal of PIHE
and the disposal of the K12 Sistemas business in Brazil offset by
costs related to the acquisition of Faethm and the wind down of
certain strategic review businesses. In 2020, they largely relate
to the sale of the remaining interest in Penguin Random House
(\u00a3180m gain).
UK pension discretionary increases - Charges in 2022 relate to
one-off pension increases awarded to certain cohorts of pensioners
in response to the cost of living crisis.
Other net finance income/costs \u2013 These include finance costs in respect of retirement benefits, finance costs relating to acquisition and disposal
transactions, fair value movements on investments classified as fair value through profit and loss, foreign exchange and other gains and losses on
derivatives. Net finance income relating to retirement benefits is excluded as management does not believe that the consolidated income statement
presentation under IAS 19 reflects the economic substance of the underlying assets and liabilities. Finance costs relating to acquisition or disposal
transactions are excluded from adjusted earnings as they are considered part of the acquisition cost or disposal proceeds rather than being reflective
of the underlying financing costs of the Group. Foreign exchange, fair value movements and other gains and losses are excluded from adjusted
earnings as they represent short-term fluctuations in market value and are subject to significant volatility. Other gains and losses may not be realised
in due course as it is normally the intention to hold the related instruments to maturity.
Tax \u2013 Tax on the above items is excluded from adjusted earnings. Where relevant, the Group also excludes the benefit from recognising previously
unrecognised pre-acquisition and capital losses. The tax benefit from tax deductible goodwill and intangibles is added to the adjusted income tax
charge as this benefit more accurately aligns the adjusted tax charge with the expected rate of cash tax payments. In addition, one off items such
as the impact of the UK tax rate change and changes in local tax law have been excluded.
Non-controlling interest \u2013 Non-controlling interest for the above items is excluded from adjusted earnings.
The adjusted earnings per share includes both continuing and discontinued businesses on an undiluted basis when relevant. The Group\u2019s definition
of adjusted earnings per share may not be comparable to other similarly titled measures reported by other companies.
The following tables reconcile the statutory income statement to the adjusted income statement.
All figures in \u00a3 millions
2022
Statutory
income
statement
Cost of
major
restructuring
Other net
gains and
losses
Intangible
charges
UK Pension
discretionary
increases
Other net
finance
income/
costs
Other tax
items
Adjusted
income
statement
Operating profit 271 150 (24) 56 3 \u2013 \u2013 456
Net finance costs 52 \u2013 \u2013 \u2013 \u2013 (53) \u2013 (1)
Profit before tax 323 150 (24) 56 3 (53) \u2013 455
Income tax (79) (37) 10 (11) (1) 13 34 (71)
Profit for the year 244 113 (14) 45 2 (40) 34 384
Non-controlling interest (2) \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 (2)
Earnings 242 113 (14) 45 2 (40) 34 382
Weighted average number
of shares (millions) 738.1 738.1
Weighted average number of shares
(millions) for diluted earnings 742.0 742.0
Earnings per share (basic) 32.8p 51.8p
Earnings per share (diluted) 32.6p 51.5p
All figures in \u00a3 millions
2021
Statutory
income
statement
1
Cost of
major
restructuring
Other net
gains and
losses
Intangible
charges
UK Pension
discretionary
increases
Other net
finance
income/
costs
1
Other tax items
Adjusted
income
statement
Operating profit 183 214 (63) 51 \u2013 \u2013 \u2013 385
Net finance costs (6) \u2013 \u2013 \u2013 \u2013 (51) \u2013 (57)
Profit before tax 177 214 (63) 51 \u2013 (51) \u2013 328
Income tax 1 (47) 14 (12) \u2013 8 (28) (64)
Profit for the year 178 167 (49) 39 \u2013 (43) (28) 264
Non-controlling interest (1) \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 (1)
Earnings 177 167 (49) 39 \u2013 (43) (28) 263
Weighted average number
of shares (millions) 754.1 754.1
Weighted average number of shares
(millions) for diluted earnings 759.1 759.1
Earnings per share (basic) 23.5p 34.9p
Earnings per share (diluted) 23.3p 34.6p
1. Comparative balances have been restated \u2013 see Note 1b.
Notes to the consolidated financial statements continued
8. Earnings per share continued
All figures in \u00a3 millions
2020
Statutory
income
statement
1
Cost of
major
restructuring
Other net
gains and
losses
Intangible
charges
UK Pensions
discretionary
increases
Other net
finance income/
costs
1
Other tax
items
Adjusted
income
statement
Operating profit 411 \u2013 (178) 80 \u2013 \u2013 \u2013 313
Net finance costs (31) \u2013 \u2013 \u2013 \u2013 (30) \u2013 (61)
Profit before tax 380 \u2013 (178) 80 \u2013 (30) \u2013 252
Income tax (50) \u2013 3 (22) \u2013 10 24 (35)
Profit for the year 330 \u2013 (175) 58 \u2013 (20) 24 217
Non-controlling interest \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013
Earnings 330 \u2013 (175) 58 \u2013 (20) 24 217
Weighted average number
of shares (millions) 755.4 755.4
Weighted average number of shares
(millions) for diluted earnings 755.4 755.4
Earnings per share (basic) 43.7p 28.7p
Earnings per share (diluted) 43.7p 28.7p
1. Comparative balances have been restated \u2013 see Note 1b.
9. Dividends
All figures in \u00a3 millions 2022 2021 2020
Final paid in respect of prior year 14.2p (2020: 13.5p; 2021: 13.5p) 107 102 101
Interim paid in respect of current year 6.6p (2020: 6.0p; 2021: 6.3p) 49 47 45
156 149 146
The Directors are proposing a final dividend in respect of the financial year ended 31 December 2022 of 14.9p per equity share which will absorb
an estimated \u00a3107m of shareholders\u2019 funds. It will be paid on 5 May 2023 to shareholders who are on the register of members on 24 March 2023.
These financial statements do not reflect this dividend.
10. Property, plant and equipment and investment property
All figures in \u00a3 millions
Investment
property
Right-of-use assets Owned assets
Total
Land and
buildings
Plant and
equipment
Land and
buildings
Plant and
equipment
Assets in
the course of
construction
Cost
At 1 January 2021
\u2013 439 12 296 308 21 1,076
Exchange differences \u2013 \u2013 \u2013 2 (3) \u2013 (1)
Additions \u2013 32 \u2013 8 17 39 96
Disposals and retirements \u2013 (6) (7) (100) (72) \u2013 (185)
Reclassifications and transfers
\u2013 \u2013 \u2013 35 \u2013 (31) 4
Transfer to assets classified as held for sale \u2013 \u2013 \u2013 (15) \u2013 \u2013 (15)
At 31 December 2021 \u2013 465 5 226 250 29 975
Exchange differences \u2013 30 \u2013 18 23 \u2013 71
Additions 22 33 1 4 8 33 101
Transfers to investment property 174 (141) \u2013 (32) (1) \u2013 \u2013
Disposals of businesses (note 31) \u2013 (10) \u2013 (1) (8) \u2013 (19)
Disposals and retirements (6) (23) (1) (5) (39) \u2013 (74)
Reclassifications and transfers \u2013 \u2013 \u2013 13 27 (40) \u2013
Transfer to assets classified as held for sale \u2013 \u2013 \u2013 (45) (3) \u2013 (48)
At 31 December 2022 190 354 5 178 257 22 1,006
All figures in \u00a3 millions
Investment
property
Right-of-use assets Owned assets
Total
Land and
buildings
Plant and
equipment
Land and
buildings
Plant and
equipment
Assets in
the course of
construction
Depreciation and impairment
At 1 January 2021 \u2013 (110) (9) (199) (243) \u2013 (561)
Exchange differences \u2013 (1) 1 (1) 1 \u2013 \u2013
Charge for the year \u2013 (46) (3) (16) (30) \u2013 (95)
Disposals and retirements \u2013 7 6 99 71 \u2013 183
Reclassifications and transfers \u2013 \u2013 \u2013 (5) 7 \u2013 2
Impairment
\u2013 (119) \u2013 (22) (5) \u2013 (146)
Transfer to assets classified as held for sale
\u2013 \u2013 \u2013 8 \u2013 \u2013 8
At 31 December 2021 \u2013 (269) (5) (136) (199) \u2013 (609)
Exchange differences \u2013 (17) \u2013 (14) (18) \u2013 (49)
Transfers to investment property (105) 101 \u2013 3 1 \u2013 \u2013
Charge for the year (6) (44) (1) (13) (26) \u2013 (90)
Disposals of businesses (note 31) \u2013 2 \u2013 1 5 \u2013 8
Disposals and retirements \u2013 13 1 5 39 \u2013 58
Reclassifications and transfers \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013
Impairment
(19) (15) \u2013 (9) (3) \u2013 (46)
Transfer to assets classified as held for sale
\u2013 \u2013 \u2013 30 2 \u2013 32
At 31 December 2022 (130) (229) (5) (133) (199) \u2013 (696)
Carrying amounts
At 1 January 2021 \u2013 329 3 97 65 21 515
At 31 December 2021 \u2013 196 \u2013 90 51 29 366
At 31 December 2022 60 125 \u2013 45 58 22 310
KE
Key areas of estimation
The recoverability of right-of-use assets and in particular
assumptions related to the ability to sublease vacant leased
assets in the future.
Depreciation expense of \u00a345m (2021: \u00a340m; 2020: \u00a344m) has been
included in the income statement in cost of goods sold and \u00a345m
(2021: \u00a355m; 2020: \u00a381m) in operating expenses. The impairment
charge of \u00a346m (2021: \u00a3146m; 2020: \u00a3nil) has been included within
operating expenses within the income statement.
Property, plant and equipment (including investment property) assets
are assessed for impairment triggers annually or when triggering
events occur. In 2022, similar to 2021, as part of a major
restructuring programme, the Group continued to simplify its
property portfolio, reducing the overall office space required. All
property related assets were assessed for impairment as a result of
this triggering event and impairment charges of \u00a346m (2021: \u00a3141m)
have been recognised within costs of major restructuring (see note 4
for details). The recoverability of certain of the Group\u2019s right-of-use
assets is now based on the Group\u2019s ability to sublease vacant space.
This involves the use of assumptions related to future subleases
including the achievable rent, lease start dates, lease incentives such
as rent free periods and the discount rate applied. Should the future
sublease outcomes be more or less favourable than the assumptions
used by management this could result in additional impairment
charges or reversals of impairment charges.
Investment property
Buildings, or portions of buildings, that are no longer occupied
by the Group and are held for operating lease rental are classified
as investment property. Investment property includes both,
right-of-use assets and owned assets. The Group recognised rental
income of \u00a33m (2021: \u00a3nil; 2020 \u00a3nil) in relation to properties
classified as investment property. Investment property is measured
using the cost model. As a result of recent impairments, the fair value
of investment property is equal to the carrying value. The fair value of
investment property has been determined using a discounted cash
flow model. The valuation model is internally generated but uses
inputs from external, independent property valuers, having
appropriate recognised professional qualifications and recent
experience in the location and category of the property being valued.
The valuations require the application of judgement and involve the
use of known inputs for existing contracted subleases as well as
assumptions related to future potential subleases including the
achievable rent, lease start dates, lease incentives such as rent free
periods and the discount rate applied. The fair value measurement of
investment properties has been classified as level 3 within the fair
value hierarchy based on the inputs and valuation technique used.
Should the future sublease outcomes be more or less favourable
than the assumptions used by management this could result in
additional impairment charges or reversals of impairment charges.
Notes to the consolidated financial statements continued
11. Intangible assets
All figures in \u00a3 millions Goodwill Software
Acquired
customer lists,
contracts and
relationships
Acquired
trademarks
and brands
Acquired
publishing
rights
Other
intangibles
acquired Total
Cost
At 1 January 2021 2,094 1,104 751 198 97 349 4,593
Exchange differences 8 5 4 (2) \u2013 (2) 13
Additions \u2013 internal development \u2013 110 \u2013 \u2013 \u2013 \u2013 110
Additions \u2013 purchased \u2013 2 \u2013 \u2013 \u2013 \u2013 2
Disposals and retirements \u2013 (135) \u2013 (25) \u2013 (43) (203)
Acquisition of subsidiary (note 30) 43 \u2013 \u2013 \u2013 \u2013 27 70
Disposal of subsidiary (note 31) \u2013 \u2013 (14) (3) \u2013 (10) (27)
Transfers \u2013 1 \u2013 \u2013 \u2013 \u2013 1
At 31 December 2021 2,145 1,087 741 168 97 321 4,559
Exchange differences 206 83 80 20 5 44 438
Additions \u2013 internal development \u2013 86 \u2013 \u2013 \u2013 \u2013 86
Additions \u2013 purchased \u2013 4 \u2013 \u2013 \u2013 \u2013 4
Disposals and retirements \u2013 (131) \u2013 \u2013 \u2013 \u2013 (131)
Acquisition of subsidiary (note 30) 204 \u2013 37 6 1 66 314
Disposal of subsidiary (note 31) (75) (9) (20) (8) \u2013 (1) (113)
Transfers \u2013 (5) \u2013 \u2013 \u2013 \u2013 (5)
At 31 December 2022 2.480 1,115 838 186 103 430 5,152
All figures in \u00a3 millions Goodwill Software
Acquired
customer lists,
contracts and
relationships
Acquired
trademarks
and brands
Acquired
publishing
rights
Other
intangibles
acquired Total
Amortisation and impairment
At 1 January 2021 \u2013 (676) (594) (158) (95) (328) (1,851)
Exchange differences \u2013 (5) (4) 1 (1) 4 (5)
Charge for the year \u2013 (113) (34) (8) \u2013 (8) (163)
Impairment charge \u2013 (4) \u2013 \u2013 \u2013 \u2013 (4)
Disposals and retirements \u2013 135 \u2013 25 \u2013 43 203
Disposal of subsidiary (note 31) \u2013 \u2013 12 2 \u2013 10 24
Transfers \u2013 6 \u2013 \u2013 \u2013 \u2013 6
At 31 December 2021 \u2013 (657) (620) (138) (96) (279) (1,790)
Exchange differences \u2013 (49) (65) (16) (5) (37) (172)
Charge for the year \u2013 (125) (33) (8) \u2013 (13) (179)
Impairment charge \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013
Disposals and retirements \u2013 130 \u2013 \u2013 \u2013 \u2013 130
Disposal of subsidiary (note 31) \u2013 8 20 7 \u2013 1 36
Transfers \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013
At 31 December 2022 \u2013 (693) (698) (155) (101) (328) (1,975)
Carrying amounts
At 1 January 2021 2,094 428 157 40 2 21 2,742
At 31 December 2021 2,145 430 121 30 1 42 2,769
At 31 December 2022 2,480 422 140 31 2 102 3,177
Goodwill
The goodwill carrying value of \u00a32,480m (2021: \u00a32,145m) relates to
acquisitions completed after 1 January 1998. Prior to 1 January 1998,
all goodwill was written off to reserves on the date of acquisition.
For acquisitions completed between 1 January 1998 and 31
December 2002, no value was ascribed to intangibles other than
goodwill which was amortised over a period of up to 20 years. On
adoption of IFRS on 1 January 2003, the Group chose not to restate
the goodwill balance and at that date the balance was frozen (i.e.
amortisation ceased). If goodwill had been restated, then a significant
value would have been ascribed to other intangible assets, which
would be subject to amortisation, and the carrying value of goodwill
would be significantly lower. For acquisitions completed after
1 January 2003, value has been ascribed to other intangible assets
which are amortised.
Software and acquired intangible assets
Acquired intangible assets are valued separately for each acquisition.
For material business combinations, the valuation is carried out by an
independent valuation specialist. The primary method of valuation
used is the discounted cash flow method. Acquired intangibles are
amortised either on a straight line basis or using an amortisation
profile based on the projected cash flows underlying the acquisition
date valuation of the intangible asset, which generally results in a
larger proportion of amortisation being recognised in the early years
of the asset\u2019s life, depending on the individual asset. The Group
keeps the expected pattern of consumption under review. Other
intangibles acquired includes technology.
Amortisation of \u00a332m (2021: \u00a325m; 2020: \u00a322m) is included in the
income statement in cost of goods sold and \u00a3147m (2021: \u00a3138m;
2020: \u00a3158m) in operating expenses. Impairment charges of \u00a3nil
(2021; \u00a34m; 2020: \u00a312m) are included in operating expenses within
the income statement, of which \u00a3nil (2021: \u00a34m; 2020: \u00a3nil) relates
to software, \u00a3nil (2021: \u00a3nil; 2020: \u00a32m) relates to customer lists,
contracts and relationships, and \u00a3nil (2021: \u00a3nil; 2020: \u00a310m) to
other intangibles acquired.
The range of useful economic lives for each major class of intangible asset (excluding goodwill and software) is shown below:
2022
Useful economic life
Class of intangible asset
Acquired customer lists, contracts and relationships 3-20 years
Acquired trademarks and brands 2-20 years
Acquired publishing rights 5-20 years
Other intangibles acquired 2-20 years
The expected amortisation profile of acquired intangible assets is shown below:
All figures in \u00a3 millions
2022
One to
five years
Six to
ten years
Eleven to
fifteen years
Sixteen to
twenty years Total
Class of intangible asset
Acquired customer lists, contracts and relationships 92 30 10 8 140
Acquired trademarks and brands 24 6 1 \u2013 31
Acquired publishing rights 2 \u2013 \u2013 \u2013 2
Other intangibles acquired 82 20 \u2013 \u2013 102
Notes to the consolidated financial statements continued
11. Intangible assets continued
Impairment tests for cash-generating units (CGUs) containing goodwill
Impairment tests have been carried out where appropriate as described below. Goodwill was allocated to CGUs, or an aggregation of CGUs, where
goodwill could not be reasonably allocated to individual business units. CGUs were revised in 2021. Impairment reviews were conducted on these
revised CGUs as summarised below:
2022 CGUs
All figures in \u00a3 millions
2022
Goodwill
Assessment & Qualifications 1,361
Virtual Learning 443
English Language Learning 259
Workforce Skills 348
Higher Education 69
Total 2,480
2021 CGUs
All figures in \u00a3 millions
2021
Goodwill
Assessment & Qualifications 1,198
Virtual Learning 395
English Language Learning 153
Workforce Skills 223
Higher Education 68
Strategic Review (includes the separate CGUs of China, India, South Africa, Canada and Other Strategic Review) 108
Total 2,145
Goodwill is tested at least annually for impairment. The recoverable amount of each aggregated CGU is based on the higher of value in use and fair
value less costs of disposal. The impairment assessment is based on value in use. Other than goodwill there are no intangible assets with indefinite
lives. No impairments of goodwill were recorded in 2022 or 2021.
KJ
Key judgements
The allocation of goodwill to the cash-generating units and
groups of cash-generating units.
KE
Key areas of estimation
The recoverability of goodwill balances. Key assumptions used
in goodwill impairment testing are discount rates, perpetuity
growth rates, forecast sales growth rates and forecast
operating profits.
The valuation of acquired intangible assets recognised on the
acquisition of a business. See note 30.
Determination of CGUs and reallocation of goodwill
Pearson identifies its CGUs based on its operating model and how
data is collected and reviewed for management reporting and
strategic planning purposes in accordance with IAS 36 \u2018Impairment of
Assets\u2019. The CGUs and CGU aggregations reflect the level at which
goodwill is monitored by management.
In 2021, the CGUs and aggregations of CGUs were revised to take
into account the announcement and implementation of a new
strategy including five new business divisions and a strategic
review division.
In 2021, goodwill was reallocated to the new CGUs and aggregations
of CGUs. The majority of the goodwill balances were directly mapped
from one previous CGU (or CGU aggregation) to one newly created
CGU (or CGU aggregation). Where it was not possible to directly
map the goodwill it was reallocated using a relative value method.
The key area where the relative value method was used was for
the goodwill related to the previous International CGU aggregation
which was reallocated across the newly created CGU aggregations
where applicable.
In 2022, the separate CGUs of China, South Africa and Canada
have been disposed. The goodwill related to the Strategic Review
CGU has been reallocated between businesses disposed and
businesses retained. All of the goodwill related to businesses
retained has since been transferred to the Assessment &
Qualifications CGU aggregation.
Key assumptions
For the purpose of estimating the value in use of the CGUs,
management has used an income approach based on present
value techniques. The calculations for all CGUs use cash flow
projections based on financial budgets approved by management
covering a four-year period, except for Virtual Learning which for
OPM uses a longer range plan out to 2038 reflecting the term of
existing contracts.
The key assumptions used by management in the value in use
calculations were:
Discount rates \u2013 The discount rates are based on the Group\u2019s
weighted average cost of capital, where the cost of equity is
calculated based on the risk-free rate of government bonds, adjusted
for a risk premium to reflect the increased risk in investing in equities.
Where CGUs cover multiple territories, a blended risk-free rate is
used. A further risk premium is assessed for each CGU. The average
pre-tax discount rates range from 11.6% to 12.0% (2021: pre-tax
8.9% to 17.1%).
Perpetuity growth rates \u2013 The perpetuity growth rates are based
on inflation trends. A perpetuity growth rate of 2% (2021: 2%) was
used for cash flows subsequent to the approved budget period for
CGUs operating primarily in mature markets. This perpetuity growth
rate is a conservative rate and is considered to be lower than the
long-term historical growth rates of the underlying territories in which
the CGU operates and the long-term growth rate prospects of the
sectors in which the CGU operates. Blended growth rate of 3.5%
(2021: 2.0% to 5.0%) was used for cash flows subsequent to the
approved budget period for ELL which has a higher exposure to
emerging markets with higher inflation. This geographically blended
growth rate is generally in line with the long-term historical growth
rates in those markets. The longer-term plan prepared for OPM
focuses on delivery of existing contracts until their expiration, as
such, a perpetuity growth rate was not applied to OPM cashflows
within the Virtual Learning CGU.
The key assumptions used by management in setting the financial
budgets were as follows:
Forecast sales growth rates \u2013 Forecast sales growth rates are
based on past experience adjusted for the strategic direction and
near-term investment priorities within each CGU. Key assumptions
include growth in English Language Learning and Workforce Skills \u2013 in
part due to contribution from new acquisitions, stabilisation and
recovery in Higher Education, growth in Virtual Learning - albeit
impacted by the unwinding of COVID-19 enrolments and school
churn in Virtual Schools in the short term, and steady growth in
Assessments and Qualifications. The sales forecasts use average
nominal growth rates of low-mid single digits for mature businesses
in mature markets and double digit growth where there is significant
organic and inorganic investment. The Virtual Learning CGU assumes
low-single digit growth for Virtual Schools, and delivery of existing
contracts in OPM which is under strategic review.
Operating profits \u2013 Operating profits are forecast based on
historical experience of operating margins, adjusted for the impact of
changes to product costs, committed restructuring plans, strategic
developments and new business cases to the extent they have been
formally approved prior to the balance sheet date. Management
applies judgement in allocating corporate costs on a reasonable and
consistent basis in order to determine operating profit at a CGU level.
Forecasts reflect margin improvements secured in 2022.
Management have considered the impact of climate change risks
(including physical and transition risks and the costs associated with
achieving the Group's net zero commitment) and are satisfied that
any related costs will not materially impact the Group\u2019s profit
forecasts or impairment judgements at 31 December 2022 .
Notes to the consolidated financial statements continued
11. Intangible assets continued
The table below shows the key assumptions used by management in the value in use calculations.
Discount rate
Perpetuity
growth rate
Assessment & Qualifications 12.0% 2.0%
Virtual Learning 11.9% 2.0%
English Language Learning 11.8% 3.5%
Workforce Skills 11.6% 2.0%
Higher Education 12.0% 2.0%
Sensitivities
Impairment testing for the year ended 31 December 2022 has identified that the Virtual Learning CGU aggregation is sensitive to reasonably possible
changes in key assumptions. The Virtual learning headroom at 31 December 2022 is \u00a382m, this headroom would be eliminated if the discount rate
increased to 12.8%, the long term growth rate reduced to 0.8% or the adjusted operating profit per annum reduced by \u00a38m.
12. Investments in joint ventures and associates
The amounts recognised in the balance sheet are as follows:
All figures in \u00a3 millions 2022 2021
Associates 25 24
Total 25 24
The amounts recognised in the income statement are as follows:
All figures in \u00a3 millions 2022 2021
Associates 1 1
Total 1 1
The Group has no material associates or joint ventures. The largest associate is a 40% interest in the Academy of Pop (AOP), which was set up in 2021.
It had a year end carrying amount of \u00a39m (2021: \u00a310m), of which \u00a35m (2021: \u00a37m) was still to be paid as at 31 December 2022 (see note 36). AOP is
incorporated in Delaware and is a Limited Liability Company. It was set up with XIX Entertainment to create a new entertainment driven performing arts
learning platform, which will offer coaching from renowned instructors, with a combination of physical locations and online learning.
There were no other material transactions with associates or joint ventures during 2022 or 2021.
13. Deferred income tax
All figures in \u00a3 millions 2022 2021
Deferred income tax assets 57 57
Deferred income tax liabilities (37) (40)
Net deferred income tax asset/(liability) 20 17
Substantially all of the deferred income tax assets are expected to be recovered after more than one year.
Deferred income tax assets and liabilities shall be offset when there is a legally enforceable right to offset current income tax assets with current
income tax liabilities and where the deferred income taxes relate to the same fiscal authority.
At 31 December 2022, the Group has gross tax losses for which no deferred tax asset is recognised of \u00a3547m (2021: \u00a3721m). The expiry date and key
geographic split of these losses is set out in the following table.
Year ended 31 December 2022
Gross Tax effected
UK US Other Total UK US Other Total
Tax losses expiring:
Within 10 years \u2013 3 30 33 \u2013 \u2013 10 10
Within 10-20 years \u2013 104 \u2013 104 \u2013 5 \u2013 5
Available indefinitely 166 30 214 410 41 2 68 111
Total 166 137 244 547 41 7 78 126
Year ended 31 December 2021
Gross Tax effected
UK US Other Total UK US Other Total
Tax losses expiring:
Within 10 years \u2013 9 27 36 \u2013 \u2013 10 10
Within 10-20 years \u2013 297 \u2013 297 \u2013 14 \u2013 14
Available indefinitely 166 86 136 388 41 5 49 95
Total 166 392 163 721 41 19 59 119
The reduction in unrecognised tax attributes in the US has been impacted by two factors. Firstly certain US tax attributes have now been recognised,
however, due to uncertainty over recoverability have been provided against. Offsetting this is the de-recognition of certain state tax losses following
changes in the forecast profitability of US legal entities. The increase in unrecognised tax losses in other territories is primarily due to foreign exchange
and additional losses incurred across territories which have incurred losses either in the ordinary course of trade or as a result of wind down activities.
Other gross deductible temporary differences for which no deferred tax asset is recognised total \u00a3218m (2021: \u00a322m). This includes \u00a3193m in respect
of interest limitations, with the increase from 2021 due to changes in the forecast profitability of certain US legal entities. The amount of temporary
differences associated with subsidiaries for which no deferred tax has been provided totals \u00a3275m (2021: \u00a3229m).
In the UK March Budget 2021, the Government announced that from 1 April 2023 the UK corporation tax rate will increase to 25%, and this was
substantively enacted on 24 May 2021. UK deferred tax balances have been remeasured at the enacted rate.
Deferred income tax assets of \u00a314m (2021: \u00a319m) have been recognised in countries that reported a tax loss in either the current or preceding year.
This primarily arises in Brazil in respect of tax deductible goodwill and tax losses. It is considered more likely than not that there will be sufficient future
taxable profits to realise these assets.
The recognition of the deferred income tax assets is supported by management\u2019s forecasts of the future profitability of the relevant countries. In some
cases deferred income tax assets are forecast to be recovered through taxable profits over a period that exceeds five years. Management consider
these forecasts are sufficiently reliable to support the recovery of the assets. Where there are insufficient forecasts of future profits, deferred income
tax assets have not been recognised.
The movement in deferred income tax assets and liabilities during the year is as follows:
All figures in \u00a3 millions
Trading
losses
Accruals and
other
provisions
Retirement
benefit
obligations
Deferred
revenue
Goodwill and
intangibles
Interest
limitations Other Total
Deferred income tax assets/
(liabilities)
At 1 January 2021 47 35 (49) 45 (209) 76 25 (30)
Exchange differences \u2013 (1) \u2013 \u2013 (2) \u2013 2 (1)
Acquisition of subsidiaries 1 \u2013 \u2013 \u2013 4 \u2013 \u2013 5
Income statement benefit/(charge) 34 30 2 7 29 (21) 35 116
Tax charge in OCI \u2013 \u2013 (61) \u2013 \u2013 \u2013 (12) (73)
At 31 December 2021 82 64 (108) 52 (178) 55 50 17
Exchange differences \u2013 7 2 6 (21) 6 4 4
Acquisitions and disposals of
subsidiaries 7 \u2013 \u2013 \u2013 (21) \u2013 (12) (26)
Income statement benefit/(charge) 37 (4) (9) 5 14 (6) (7) 30
Tax charge in OCI / equity 4 \u2013 (12) \u2013 \u2013 \u2013 3 (5)
At 31 December 2022 130 67 (127) 63 (206) 55 38 20
Other deferred income tax items include temporary differences in respect of right-of-use assets (deferred tax asset of \u00a366m, with an offsetting
deferred tax liability of \u00a350m), accelerated capital allowances (\u00a313m) and share-based payments (\u00a39m).
As at 31 December 2022, no deferred income tax assets or liabilities were classified as held for sale (2021: \u00a3nil).
Notes to the consolidated financial statements continued
14. Classification of financial instruments
The accounting classification of each class of the Group\u2019s financial assets, and their carrying values, is as follows:
All figures in \u00a3 millions Notes
2022 2021
Fair value
Amortised
cost
Total
carrying
value
Fair value
Amortised
cost
Total
carrying
value
Fair value
through other
comprehensive
income
Fair value
through
profit and
loss
Fair value
\u2013 hedging
instrument
Financial
assets
Fair value
through other
comprehensive
income
1
Fair value
through
profit and
loss
1
Fair value
\u2013 hedging
instrument
Financial
assets
Investments in
unlisted securities 15 24 109 \u2013 \u2013 133 28 85 \u2013 \u2013 113
Cash and cash
equivalents 17 \u2013 40 \u2013 518 558 \u2013 84 \u2013 853 937
Derivative financial
instruments 16 \u2013 5 54 \u2013 59 \u2013 \u2013 32 \u2013 32
Trade receivables 22 \u2013 \u2013 \u2013 825 825 \u2013 \u2013 \u2013 854 854
Investment in finance
lease receivable 22 \u2013 \u2013 \u2013 121 121 \u2013 \u2013 \u2013 115 115
Other receivable \u2013 \u2013 \u2013 3 3 \u2013 87 \u2013 \u2013 87
Total financial assets 24 154 54 1,467 1,699 28 256 32 1,822 2,138
1. Comparative balances have been restated \u2013 see Note 1b.
The carrying value of the Group\u2019s financial assets is equal to, or approximately equal to, the market value. The other receivable relates to the receivable
which arose on the disposal of the US K-12 business and was paid during the year.
The accounting classification of each class of the Group\u2019s financial liabilities, together with their carrying values and market values, is as follows:
All figures in \u00a3 millions Notes
2022 2021
Fair value
Amortised
cost
Total
carrying
value
Total
market
value
Fair value
Amortised
cost
Total
carrying
value
Total
market
value
Fair value
through
profit and
loss
Fair value
\u2013 hedging
instrument
Other
financial
liabilities
Fair value
through
profit and
loss
Fair value
\u2013 hedging
instrument
Other
financial
liabilities
Derivative financial
instruments 16 (2) (63) \u2013 (65) (65) (12) (22) \u2013 (34) (34)
Trade payables 24 \u2013 \u2013 (348) (348) (348) \u2013 \u2013 (351) (351) (351)
Deferred and contingent
consideration 24 (79) \u2013 \u2013 (79) (79) (44) \u2013 \u2013 (44) (44)
Other borrowings due
within one year 18 \u2013 \u2013 (86) (86) (86) \u2013 \u2013 (155) (155) (155)
Borrowings due after
more than one year 18 \u2013 \u2013 (1,144) (1,144) (1,096) \u2013 \u2013 (1,245) (1,245) (1,276)
Total financial
liabilities (81) (63) (1,578) (1,722) (1,674) (56) (22) (1,751) (1,829) (1,860)
The market value of leases has been stated at book value.
Fair value measurement
As shown above, the Group\u2019s derivative assets and liabilities, unlisted securities, marketable securities and deferred and contingent consideration
are held at fair value. Financial instruments that are measured subsequently to initial recognition at fair value are grouped into levels 1 to 3, based
on the degree to which the fair value is observable, as follows:
Level 1 fair value measurements are those derived from unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2 fair value measurements are those derived from inputs, other than quoted prices included within level 1, that are observable
for the asset or liability, either directly (as prices) or indirectly (derived from prices).
Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based
on observable market data (unobservable inputs).
The Group\u2019s bonds valued at \u00a3610m (2021: \u00a3767m) and money market funds of \u00a340m (2021: \u00a384m) included within cash and cash equivalents are
classified as level 1. The Group\u2019s derivative assets valued at \u00a359m (2021: \u00a332m) and derivative liabilities valued at \u00a365m (2021: \u00a334m) are classified as
level 2. The Group\u2019s investments in unlisted securities are valued at \u00a3133m (2021: \u00a3113m) and the other receivable that was repaid in the year \u00a33m
(2021: \u00a387m) are classified as level 3.
The following table analyses the movements in level 3 fair value remeasurements:
All figures in \u00a3 millions
2022 2021
1
Other
receivable
Investments
in unlisted
securities Total Total
At beginning of year 87 113 200 234
Exchange differences 1 9 10 2
Acquisition of investments and other receivable 7 12 19 4
Repayments (92) \u2013 (92) (16)
Disposal of investments \u2013 (48) (48) (54)
Fair value movements - OCI \u2013 18 18 4
Fair value movements - income statement \u2013 29 29 26
At end of year 3 133 136 200
1. Comparative balances have been restated \u2013 see Note 1b.
The fair value of the investments in unlisted securities is determined by reference to the financial performance of the underlying asset,
recent funding rounds and amounts realised on the sale of similar assets.
The other receivable at the beginning of the year arose on the disposal of the US K-12 business, and was repaid in January 2022, following a \u00a316m
partial repayment in 2021.
15. Other financial assets
All figures in \u00a3 millions 2022 2021
1
At beginning of year 113 138
Exchange differences 9 1
Acquisition of investments 12 4
Disposal of investments (48) (54)
Fair value movements - OCI 18 4
Fair value movements - income statement 29 20
At end of year 133 113
1. Comparative balances have been restated \u2013 see Note 1b.
Other financial assets are unlisted securities of \u00a3133m (2021: \u00a3113m), of which \u00a324m (2021: \u00a328m) are classified at fair value through other
comprehensive income (FVOCI), with the remaining \u00a3109m (2021: \u00a385m) mainly relating to investments in funds, being required to be held at fair
value through profit and loss (FVTPL). The assets, which are not held for trading, relate to the Group\u2019s interests in new and innovative educational
ventures across the world. These are strategic investments and where permitted, the Group made the election to classify such investments as FVOCI
on initial recognition of the assets. None of the investments are individually significant to the financial statements and therefore sensitivities have not
been provided.
During the year, the Group disposed of investments that were classified as FVOCI for \u00a331m (2021: \u00a36m). These disposals predominantly relate to the
Group\u2019s investments in Credly in 2022 and Faethm in 2021. In both cases the remainder of the share capital was purchased by the Group and so the
investment is disposed as the companies are now fully consolidated. The cumulative gain on disposal was \u00a323m (2021: \u00a34m).
Notes to the consolidated financial statements continued The Group\u2019s treasury policies only allow derivatives to be traded where the objective is risk mitigation. These are then designated for hedge accounting using the following criteria: \u2014 Where interest rate and cross-currency interest rate swaps are used to convert fixed rate debt to floating and we expect to receive inflows equal to the fixed rate debt interest, these are classified as fair value hedges \u2014 Where derivatives are used to create a future foreign currency exposure to provide protection against currency movements affecting the foreign currency movements of an overseas investment, these are designated as a net investment hedge \u2014 All other derivatives are not designated in a hedge relationship. The Group\u2019s fixed rate GBP debt is held as fixed rate instruments at amortised cost. The Group uses a combination of interest rate and cross currency swaps to convert its \u20ac300m EUR debt. Receive Notional Receive coupon FX rate Notional Pay coupon \u20ac100m 1.375% GBPEUR: 1.1295 \u00a387m 3.51% \u20ac181m 1.375% GBPUSD: 1.206 \u00a3160m 3.402% \u20ac19m 1.375% GBPUSD: 1.206 \u00a323m USD Libor +1.36% To create the synthetic debt positions outlined above the Group converts \u20ac100m to \u00a387m at a rate of 3.51% this is not in a hedge relationship. The remaining \u20ac200m of its EUR fixed debt is swapped to EUR floating debt via interest rate swap contracts that are in a designated fair value hedge. The EUR floating debt is then converted to GBP floating debt via cross-currency swap contracts that are in a designated fair value hedge. The GBP floating debt is then converted to USD floating debt through cross-currency swap contracts that are in a designated net investment hedging relationship. \u00a3160m of the EUR debt is finally converted to USD fixed debt via interest rate swap contracts that are not in a hedge relationship. Additionally, the Group uses FX derivatives including forwards, collars, cross-currency swaps and swaptions to create synthetic USD debt as a hedge of its USD assets and to achieve reasonable certainty of USD currency conversion rates, in line with the Group\u2019s FX hedging policy. As at 31 December 2022 the Group held FX outrights with a notional of $378m at an average rate of GBP:USD rate of 1.24. The Group\u2019s portfolio of derivatives is diversified by maturity, counterparty and type. Natural offsets between transactions within the portfolio and the designation of certain derivatives as hedges significantly reduce the risk of income statement volatility. The sensitivity of the portfolio to changes in market rates is set out in note 19. In 2021, the Group transitioned GBP exposures from GBP LIBOR to SONIA. During the year, for USD exposures the Group transitioned its RCF from USD LIBOR to SOFR, it plans to move other exposures including derivatives in the near future. The Group\u2019s risk management strategy has not changed as a result of IBOR Reform and it is considered to be immaterial to the financial statements. Fair value hedges The Group uses interest rate swaps and cross-currency swaps as fair value hedges of the Group\u2019s euro issued debt. Interest rate exposure arises from movements in the fair value of the Group\u2019s euro debt attributable to movements in euro interest rates. The hedged risk is the change in the euro bonds fair value attributable to interest rate movements. The hedged items are the Group\u2019s euro bonds which are issued at a fixed rate. The hedging instruments are fixed to floating euro interest rate swaps where the Group receives fixed interest payments and pays three-month Euribor. As the critical terms of the interest rate swaps match the bonds, there is an expectation that the value of the hedging instrument and the value of the hedged item will move equally in the opposite direction as a result of movements in the zero coupon Euribor curve. Potential sources of hedge ineffectiveness would be material changes in the credit risk of swap counterparties or a reduction or modification in the hedge item. 16. Derivative financial instruments and hedge accounting The Group\u2019s approach to the management of financial risks is set out in note 19. The Group\u2019s outstanding derivative financial instruments are as follows: All figures in \u00a3 millions 2022 2021 Gross notional amounts Assets Liabilities Gross notional amounts Assets Liabilities Interest rate derivatives \u2013 in a fair value hedge relationship 177 \u2013 (11) 168 5 \u2013 Interest rate derivatives \u2013 not in a hedge relationship 260 19 \u2013 217 \u2013 (9) Cross-currency rate derivatives \u2013 in a hedge relationship 83 34 (43) 331 24 (21) FX derivatives \u2013 in a hedge relationship 355 1 (9) 237 3 (1) FX derivatives \u2013 not in a hedge relationship 573 5 (2) 193 \u2013 (3) Total 1,448 59 (65) 1,146 32 (34) Analysed as expiring: In less than one year 1,028 16 (11) 393 2 (4) Later than one year and not later than five years 420 43 (54) 679 30 (26) Later than five years \u2013 \u2013 \u2013 74 \u2013 (4) Total 1,448 59 (65) 1,146 32 (34) A foreign currency exposure arises from foreign exchange fluctuations on translation of the Group\u2019s euro debt into GBP. The hedged risk is the risk
of changes in the GBPEUR spot rate that will result in changes in the value of the euro debt when translated into GBP. The hedged items are a portion
of the Group\u2019s euro bonds. The hedging instruments are floating to floating cross currency swaps which mitigates an exposure to the effect of euro
strengthening against GBP within the hedge item.
As the critical terms of the cross-currency swap match the bonds, there is an expectation that the value of the hedging instrument and the value
of the hedged item move in the opposite direction as a result of movements in the EUR:GBP exchange rate. Potential sources of hedge ineffectiveness
are a reduction or modification in the hedged item or a material change in the credit risk of swap counterparties.
The Group held the following instruments to hedge exposures to changes in interest rates and foreign currency risk associated with borrowings:
All figures in \u00a3 millions
2022
Carrying amount of
hedging instruments
Change in fair value of
hedging instrument
used to determine
hedge ineffectiveness
Nominal amounts of
hedging instruments
Derivative financial instruments for interest rate risk (11) (16) 177
Derivative financial instruments for currency risk 33 9 266
All figures in \u00a3 millions
2021
Carrying amount of
hedging instruments
Change in fair value of
hedging instrument
used to determine
hedge ineffectiveness
Nominal amounts of
hedging instruments
Derivative financial instruments for interest rate risk 5 (5) 168
Derivative financial instruments for currency risk 24 (20) 168
The amounts at the reporting date relating to items designated as hedge items were as follows:
All figures in \u00a3 millions
2022
Carrying amount of
hedged items
Accumulated amount of
fair value hedge
adjustments on the
hedged item included in
the carrying amount
Change in fair value of
hedged item used to
determine hedge
ineffectiveness
Hedge
ineffectiveness
Line item in profit or
loss that includes hedge
ineffectiveness
Interest rate risk
Financial liabilities \u2013 borrowings (167) 11 15 (1) Finance costs
Currency risk
Financial liabilities \u2013 borrowings (167) n/a (14) \u2013 n/a
All figures in \u00a3 millions
2021
Carrying amount of
hedged items
Accumulated amount of
fair value hedge
adjustments on
the hedged item
included in the carrying
amount
Change in fair value of
hedged item used to
determine hedge
ineffectiveness
Hedge
ineffectiveness
Line item in profit or
loss that includes hedge
ineffectiveness
Interest rate risk
Financial liabilities \u2013 borrowings (173) (4) 5 \u2013 n/a
Currency risk
Financial liabilities \u2013 borrowings (173) n/a 20 \u2013 n/a
Hedge of net investment in a foreign operation
A foreign currency exposure arises from the translation of the Group\u2019s net investments in its subsidiaries which have USD and EUR functional
currencies. The hedged risk is the risk of changes in the GBP:USD and GBP:EUR spot rates that will result in changes in the value of the Group\u2019s net
investment in its USD and EUR assets when translated into GBP. The hedged items are a portion of the Group\u2019s assets which are denominated in
USD and EUR. The hedging instruments are debt and derivative financial instruments, including cross-currency swaps, FX forwards (including
non-deliverable forwards) and FX collars, which mitigates an exposure to the effect of a weakening USD or EUR on the hedged item against GBP.
Notes to the consolidated financial statements continued
16. Derivative financial instruments and hedge accounting continued
It is expected that the change in value of each of these items will offset each other as there is a clear and direct economic relationship between
the hedging instrument and the hedged item in the hedge relationship.
Hedge ineffectiveness would arise if the value of the hedged items fell below the value of the hedging instruments; however, this is unlikely
as the value of the Group\u2019s assets denominated in USD and EUR is significantly greater than the proposed net investment programme.
The amounts related to items designated as hedging instruments were as follows:
All figures in \u00a3 millions
2022
Carrying
amount of
hedging
instruments
Change in
value of hedging
instrument used to
determine hedge
ineffectiveness
Nominal
amounts
of hedging
instruments
Hedging
gains/(losses)
recognised in
OCI
Hedge
ineffectiveness
recognised in
profit or loss
Derivative financial instruments (50) (31) 172 (31) \u2013
Financial liabilities \u2013 borrowings (89) (5) (88) (5) \u2013
All figures in \u00a3 millions
2021
Carrying
amount of
hedging
instruments
Change in
value of hedging
instrument used to
determine hedge
ineffectiveness
Nominal
amounts
of hedging
instruments
Hedging
gains/(losses)
recognised in
OCI
Hedge
ineffectiveness
recognised in
profit or loss
Derivative financial instruments (19) (2) (400) (2) \u2013
Financial liabilities \u2013 borrowings (240) 4 (240) 4 \u2013
Included in the translation reserve is a cost of hedging reserve relating to the time value of FX collars which is not separately disclosed due to
materiality. The value of that reserve will decrease over the life of the hedge transaction. The balance as at 1 January and 31 December 2022 was \u00a31m.
During the year \u00a32m of hedging gains were recycled to the profit and loss on the discontinuance of the net investment hedge of our Italian business.
Offsetting arrangements with derivative counterparties
All of the Group\u2019s derivative financial instruments are subject to enforceable netting arrangements with individual counterparties, allowing net
settlement in the event of default of either party. Derivative financial assets and liabilities subject to offsetting arrangements are as follows:
All figures in \u00a3 millions
2022 2021
Gross
derivative
assets
Gross
derivative
liabilities
Net
derivative
assets/
liabilities
Gross
derivative
assets
Gross
derivative
liabilities
Net derivative
assets/
liabilities
Counterparties in an asset position 30 (17) 13 17 (12) 5
Counterparties in a liability position 29 (48) (19) 15 (22) (7)
Total as presented in the balance sheet 59 (65) (6) 32 (34) (2)
Offset arrangements in respect of cash balances are described in note 17.
Counterparty exposure from all derivatives is managed, together with that from deposits and bank account balances, within credit limits that reflect
published credit ratings and by reference to other market measures (e.g. market prices for credit default swaps) to ensure that there is
no significant exposure to any one counterparty\u2019s credit risk.
The Group has no material embedded derivatives that are required to be separately accounted for in accordance with IFRS 9 \u2018Financial Instruments\u2019.
17. Cash and cash equivalents (excluding overdrafts)
All figures in \u00a3 millions 2022 2021
Cash at bank and in hand 269 660
Short-term bank deposits 289 277
558 937
Short-term bank deposits are invested with banks and earn interest at the prevailing short-term deposit rates.
At the end of 2022, the currency split of cash and cash equivalents was US dollar 31% (2021: 37%), sterling 6% (2021: 24%), and other 63% (2021: 39%).
Cash and cash equivalents have fair values that approximate to their carrying value due to their short-term nature.
There is no cash and cash equivalents balance classified as held for sale (2021: \u00a3nil). The Group has certain cash pooling arrangements in US dollars,
sterling and Canadian dollars where both the company and the bank have a legal right of offset. Offsetting amounts are presented gross in the balance
sheet. Offset arrangements in respect of derivatives are shown in note 16.
For the purpose of the cash flow statement, cash and cash equivalents are \u00a3543m (2021: \u00a3937m), which includes \u00a315m (2021: \u00a3nil) of overdrafts.
18. Financial liabilities \u2013 borrowings
The Group\u2019s current and non-current borrowings are as follows:
All figures in \u00a3 millions 2022 2021
Non-current
3.25% US dollar notes 2023 (nominal amount $94m) \u2013 70
1.375% Euro notes 2025 (nominal amount \u20ac300m) 257 257
3.75% GBP notes 2030 (nominal amount \u00a3350m) 353 353
Lease liabilities (see note 35) 534 565
1,144 1,245
Current (due within one year or on demand)
3.75% US dollar notes 2022 (nominal amount $117m) \u2013 87
Lease liabilities (see note 35) 71 68
Overdrafts 15 \u2013
86 155
Total borrowings 1,230 1,400
Included in the non-current borrowings above is \u00a310m of accrued interest (2021: \u00a310m). No accrued interest is included in the current borrowings
above (2021: \u00a30.5m). In addition to the above, there are no non-current borrowings (2021: \u00a3nil) or current borrowings (2021: \u00a3nil) classified as held for
sale. The maturities of the Group\u2019s non-current borrowings are as follows:
All figures in \u00a3 millions 2022 2021
Between one and two years 72 140
Between two and five years 442 435
Over five years 630 670
1,144 1,245
The carrying amounts and market values of borrowings are as follows:
All figures in \u00a3 millions
2022 2021
Effective
interest rate
Carrying
value
Market
value
Effective
interest rate
Carrying
value
Market
value
3.75% US dollar notes 2022 n/a \u2013 \u2013 3.94% 87 87
3.25% US dollar notes 2023 n/a \u2013 \u2013 3.36% 70 71
1.375% Euro notes 2025 1.44% 257 252 1.44% 257 260
3.75% GBP notes 2030 3.93% 353 310 3.93% 353 380
Overdrafts n/a 15 15 \u2013 \u2013 \u2013
625 577 767 798
Notes to the consolidated financial statements continued
18. Financial liabilities \u2013 borrowings continued
The market values stated above are based on clean market prices at the year end or, where these are not available, on the quoted market prices
of comparable debt issued by other companies. The effective interest rates above relate to the underlying debt instruments.
The carrying amounts of the Group\u2019s borrowings before the effect of derivatives (see notes 16 and 19 for further information on the impact
of derivatives) are denominated in the following currencies:
All figures in \u00a3 millions 2022 2021
US dollar 276 434
Sterling 672 674
Euro 262 268
Other 20 24
1,230 1,400
The Group had $1.19bn (\u00a30.9bn) of undrawn capacity on its committed borrowing facilities as at 31 December 2022 (2021: $1.19bn (\u00a30.9bn) undrawn).
The committed borrowing facilities have subsequently been reduced to $1bn. In addition, there are a number of short-term facilities that are utilised in
the normal course of business. All of the Group\u2019s borrowings are unsecured. In respect of lease obligations, the rights to the leased asset revert to the
lessor in the event of default.
19. Financial risk management
The Group\u2019s approach to the management of financial risks together
with sensitivity analyses of its financial instruments is set out below.
Treasury policy
Pearson\u2019s treasury policies set out the Group\u2019s principles for
addressing key financial risks including capital risk, liquidity risk,
foreign exchange risk and interest rate risk, and sets out measurable
targets for each. The Audit Committee receives quarterly reports
incorporating compliance with measurable targets and reviews and
approves any changes to treasury policies annually.
The treasury function is permitted to use derivatives where their
use reduces a risk or allows a transaction to be undertaken more
cost effectively. Derivatives permitted include swaps, forwards and
collars to manage foreign exchange and interest rate risk, with
foreign exchange swap and forward contracts the most commonly
executed. Speculative transactions are not permitted.
Capital risk
The Group\u2019s objectives when managing capital are:
\u2014 To maintain a strong balance sheet and a solid investment
grade rating;
\u2014 To continue to invest in the business organically and
through acquisitions; and
\u2014 To have a sustainable and progressive dividend policy.
At 31 December 2022 the Group and its bonds were rated BBB-
(stable outlook) with Fitch Ratings Limited and Baa3 (stable outlook)
with Moody\u2019s Investor Services.
Net debt
The Group\u2019s net debt position is set out below:
All figures in \u00a3 millions 2022 2021
Cash and cash equivalents 558 937
Overdrafts (15) \u2013
Derivative financial instruments (6) (2)
Bonds (610) (767)
Investment in finance lease receivable 121 115
Lease liabilities (605) (633)
Net debt (557) (350)
There are no balances held for sale as at 31 December 2022 or 31 December 2021.
Interest and foreign exchange rate management
The Group\u2019s principal currency exposure is to the US dollar which represents almost 70% of the Group\u2019s sales.
The Group\u2019s long-term debt is primarily held in US dollars to provide a natural hedge of this exposure, which is achieved through issued US dollar debt
or converting euro debt to US dollars using cross-currency swaps, forwards and collars. As at 31 December 2022 and 2021, the Group\u2019s debt of
\u00a31,230m (2021: \u00a31,400m) is all held at fixed rates.
See note 16 for details of the Group\u2019s hedging programme which addresses interest rate risk and foreign currency risk.
Overseas profits are converted to sterling to satisfy sterling cash outflows such as dividends at the prevailing spot rate at the time of the transaction.
To the extent the Group has sufficient sterling, US dollars may be held as dollar cash to provide a natural offset to the Group\u2019s debt or to satisfy future
US dollar cash outflows.
The Group does not have significant cross-border foreign exchange transactional exposures.
As at 31 December 2022, the sensitivity of the carrying value of the Group\u2019s financial instruments to fluctuations in interest rates and exchange rates
is as follows:
All figures in \u00a3 millions
2022
Carrying
value
Impact of 1%
increase in
interest rates
Impact of 1%
decrease in
interest rates
Impact of 10%
strengthening
in sterling
Impact of
10%
weakening in
sterling
Investments in unlisted securities 133 \u2013 \u2013 (10) 12
Other receivable 3 \u2013 \u2013 \u2013 \u2013
Cash and cash equivalents 558 \u2013 \u2013 (25) 31
Derivative financial instruments (6) 7 (6) (10) 12
Bonds (610) 4 (4) 24 (30)
Other borrowings (620) \u2013 \u2013 26 (32)
Investment in finance lease receivable 121 \u2013 \u2013 (11) 13
Deferred and contingent consideration (79) \u2013 \u2013 4 (5)
Other net financial assets 477 \u2013 \u2013 (38) 47
Total (23) 11 (10) (40) 48
All figures in \u00a3 millions
2021
Carrying
value
Impact of 1%
increase in
interest rates
Impact of 1%
decrease in
interest rates
Impact of 10%
strengthening
in sterling
Impact of 10%
weakening in
sterling
Investments in unlisted securities 113 \u2013 \u2013 (9) 11
Other receivable 87 \u2013 \u2013 (8) 10
Cash and cash equivalents 937 \u2013 \u2013 (43) 53
Derivative financial instruments (2) 6 (6) (1) 1
Bonds (767) 5 (5) 37 (45)
Other borrowings (633) \u2013 \u2013 57 (70)
Investment in finance lease receivable 115 \u2013 \u2013 (11) 13
Other net financial assets 503 \u2013 \u2013 (42) 51
Total 353 11 (11) (20) 24
The table above shows the sensitivities of the fair values of each class of financial instrument to an isolated change in either interest rates or foreign
exchange rates. Other net financial assets comprise trade receivables less trade payables. A significant proportion of the movements shown above
would impact equity rather than the income statement due to the location and functional currency of the entities in which they arise and the availability
of net investment hedging.
The Group\u2019s income statement is reported at average rates for the year while the balance sheet is translated at the year-end closing rate. Differences
between these rates can distort ratio calculations such as debt to EBITDA and interest cover. Adjusted operating profit translated at year-end closing
rates would be \u00a39m higher (2021: \u00a36m higher) than the reported figure of \u00a3456m (2021: \u00a3385m) at \u00a3465m (2021: \u00a3391m). Adjusted EBITDA translated
at year-end closing rates would be \u00a312m higher (2021: \u00a38m higher) than the reported figure of \u00a3667m (2021: \u00a3598m) at \u00a3679m (2021: \u00a3606m).
Notes to the consolidated financial statements continued
19. Financial risk management continued
Liquidity and refinancing risk management
The Group regularly reviews the level of cash and debt facilities
required to fund its activities. This involves preparing a prudent
cash flow forecast for the next three to five years, determining the
level of debt facilities required to fund the business, planning for
shareholder returns and repayments of maturing debt, and
identifying an appropriate amount of headroom to provide a reserve
against unexpected outflows.
At 31 December 2022, the Group had cash of \u00a30.5bn (2021: \u00a30.9bn)
and no outstanding drawings (2021: \u00a3nil) on the US dollar
denominated revolving credit facility due 2026 of $1.19bn (2021:
$1.19bn).
The $1.19bn facility contains interest cover and leverage covenants
which the Group has complied with for the year ended 31 December
2022. The maturity of the carrying values of the Group\u2019s borrowings
and trade payables are set out in notes 18 and 24 respectively.
At the end of 2022, the currency split of the Group\u2019s trade payables
was US dollar \u00a3234m (2021: \u00a3199m), sterling \u00a371m (2021: \u00a376m) and
other currencies \u00a343m (2021: \u00a376m). Trade payables are all due
within one year (2021: all due within one year).
The table below analyses the Group\u2019s bonds and derivative assets
and liabilities into relevant maturity groupings based on the
remaining period at the balance sheet date to the contractual
maturity date. Short dated derivative instruments have not been
included in this table. The amounts disclosed in the table are the
contractual undiscounted cash flows (including interest) and as such
may differ from the amounts disclosed on the balance sheet.
Any cash flows based on a floating rate are calculated using interest
rates as set at the date of the last rate reset. Where this is not
possible, floating rates are based on interest rates prevailing at 31
December in the relevant year.
Financial counterparty and credit risk management
Financial counterparty and credit risk arises from cash and cash
equivalents, favourable derivative financial instruments and deposits
with banks and financial institutions, as well as credit exposures to
customers, including outstanding receivables. Counterparty credit
limits, which take published credit rating and other factors into
account, are set to cover the Group\u2019s total aggregate exposure to a
single financial institution. The limits applicable to published credit
rating bands are approved by the Chief Financial Officer within
guidelines approved by the Board. Exposures and limits applicable
to each financial institution are reviewed on a regular basis.
All figures in \u00a3 millions
Analysed by maturity
Total
Analysed by currency
Total
Greater than
one month and
less than
one year
Later than
one year
but less than
five years
Five years
or more USD GBP Other
At 31 December 2022
Bonds \u2013 342 389 731 \u2013 455 276 731
Rate derivatives \u2013 inflows (11) (471) \u2013 (482) (24) (170) (288) (482)
Rate derivatives \u2013 outflows 1 490 \u2013 491 224 255 12 491
FX forwards \u2013 inflows (304) \u2013 \u2013 (304) \u2013 (304) \u2013 (304)
FX forwards \u2013 outflows 313 \u2013 \u2013 313 \u2013 313 \u2013 313
Total (1) 361 389 749 200 549 \u2013 749
At 31 December 2021
Bonds 107 386 403 896 162 468 266 896
Rate derivatives \u2013 inflows (7) (331) \u2013 (338) (9) (150) (179) (338)
Rate derivatives \u2013 outflows 12 339 4 355 203 150 2 355
FX forwards \u2013 inflows (148) \u2013 \u2013 (148) \u2013 (148) \u2013 (148)
FX forwards \u2013 outflows 148 \u2013 \u2013 148 90 \u2013 58 148
Total 112 394 407 913 446 320 147 913
Cash deposits and derivative transactions are made with approved
counterparties up to pre-agreed limits. To manage counterparty risk
associated with cash and cash equivalents, the Group uses a mixture
of money market funds as well as bank deposits. As at 31 December
2022, 77% (2021: 81%) of cash and cash equivalents was held with
investment grade bank counterparties, 8% (2021: 9%) with AAA
money market funds and 15% (2021: 10%) with non-investment
grade bank counterparties.
For trade receivables and contract assets, the Group\u2019s exposure
to credit risk is influenced mainly by the individual characteristics
of each customer. However, risk associated with the industry and
country in which customers operate may also influence the credit
risk. The credit quality of customers is assessed by taking into
account financial position, past experience and other relevant
factors. Individual credit limits are set for each customer based
on internal ratings. The compliance with credit limits is regularly
monitored by the Group. A default on a trade receivable is when the
counterparty fails to make contractual payments within the stated
payment terms. Trade receivables and contract assets are written
off when there is no reasonable expectation of recovery.
The carrying amounts of financial assets, trade receivables and
contract assets represent the maximum credit exposure.
Trade receivables and contract assets are subject to impairment
using the expected credit loss model. The Group applies the IFRS 9
simplified approach to measuring expected credit losses which uses
a lifetime expected credit loss allowance for all trade receivables
and contract assets. To measure the expected credit losses, trade
receivables and contract assets have been grouped based on shared
credit risk characteristics and the days past due. See note 22 for
further details about trade receivables and contract assets including
movements in provisions for bad and doubtful debts.
20. Intangible assets \u2013 product development
All figures in \u00a3 millions 2022 2021
Cost
At 1 January 2,698 2,514
Exchange differences 235 \u2013
Additions 357 287
Disposals and retirements (191) (92)
Disposal of subsidiary (note 31) (186) (9)
Transfers 5 (2)
At 31 December 2,918 2,698
Amortisation
At 1 January (1,804) (1,609)
Exchange differences (174) (3)
Charge for the year (288) (260)
Impairment (15) (19)
Disposals and retirements 191 92
Disposal of subsidiary (note 31) 147 3
Transfers \u2013 (8)
At 31 December (1,943) (1,804)
Carrying amounts at 31 December 975 894
Product development assets are amortised over their estimated useful economic lives. Product development assets relating to content are amortised
over seven years or less, being an estimate of the expected operating lifecycle of the title, with a higher proportion of the amortisation taken in the
earlier years. Product development assets relating to product platforms are amortised over 10 years or less. Amortisation is included in the income
statement in cost of goods sold.
Product development assets are assessed for impairment triggers on an annual basis or when triggering events occur. In 2022, of the \u00a315m (2021:
\u00a319m) impairment charges, \u00a313m (2021: \u00a314m; 2020: \u00a3nil) have been recognised as a result of asset write-offs related to the major restructuring
programme. The full annual impairment test showed that there is adequate headroom across all product development assets and accordingly no
further impairment charges were recognised in 2022 (2021: \u00a3nil; 2020: \u00a3nil).
21. Inventories
All figures in \u00a3 millions 2022 2021
Raw materials 5 7
Work in progress 2 2
Finished goods 93 84
Returns asset 5 5
105 98
The cost of inventories recognised as an expense and included in the income statement in cost of goods sold amounted to \u00a3166m (2021: \u00a3171m;
2020: \u00a3219m) including \u00a316m (2021: \u00a322m; 2020: \u00a341m) of inventory provisions. None of the inventory is pledged as security. Included within the
inventory balance is the estimation of the right to receive goods from contracts with customers via returns. The value of the returns asset is measured
at the carrying amount of the assets at the time of sale aligned to the Group\u2019s normal inventory valuation methodology less any expected costs to
recover the asset and any expected reduction in value. Impairment charges against the inventory returns asset are \u00a3nil in 2022 (2021: \u00a3nil; 2020: \u00a3nil).
The returns asset all relates to finished goods. The obsolescence provision takes account of the Group\u2019s digital first strategy and the increasing shift
towards print on demand. The year-on-year reduction in inventories is due to increased provisions for obsolescence and a reduction in the production
of inventory due to the Group\u2019s digital first strategy and the increasing shift towards print on demand.
Notes to the consolidated financial statements continued
22. Trade and other receivables
All figures in \u00a3 millions 2022 2021
Current
Trade receivables 824 853
Royalty advances 1 2
Prepayments 200 198
Investment in finance lease receivable 17 15
Accrued income 15 14
Other receivables 82 175
1,139 1,257
Non-current
Trade receivables 1 1
Royalty advances 5 5
Prepayments 12 10
Investment in finance lease receivable 104 100
Accrued income 2 1
Interest receivable 3 8
Other receivables 12 4
139 129
Accrued income represents contract assets which are unbilled amounts generally resulting from assessments and services revenue streams where
revenue to be recognised over time has been recognised in excess of customer billings to date. Impairment charges on accrued income assets are \u00a3nil
(2021: \u00a3nil). The carrying value of the Group\u2019s trade and other receivables approximates its fair value. Trade receivables are stated net of provisions for
bad and doubtful debts. In addition to the above, there are trade receivables of \u00a3nil (2021: nil) classified as held for sale (see note 32).
The movements in the provision for bad and doubtful debts are as follows:
All figures in \u00a3 millions 2022 2021
At beginning of year (63) (74)
Exchange differences (3) \u2013
Income statement movements (18) (15)
Utilised 12 26
Disposal of subsidiary 3 \u2013
At end of year (69) (63)
Concentrations of credit risk with respect to trade receivables are limited due to the Group\u2019s large number of customers, who are
internationally dispersed.
The ageing of the Group\u2019s gross trade receivables is as follows:
All figures in \u00a3 millions 2022 2021
Within due date and one month past due date 663 766
One to three months past due date 118 58
Three to six months past due date 25 20
Six to nine months past due date 14 13
Nine to 12 months past due date 14 5
More than 12 months past due date 60 55
Gross trade receivables 894 917
The Group reviews its bad debt provision at least twice a year following a detailed review of receivable balances, historical payment profiles, and
assessment of relevant forward-looking risk factors including macroeconomic trends. Management believes all the remaining receivable balances
are fully recoverable.
The decrease in trade receivables held by the Group is driven by current year disposals. Other current receivables have decreased due to the receipt
of deferred proceeds in relation to the US K-12 disposal.
23. Provisions for other liabilities and charges
All figures in \u00a3 millions Property
Disposals
and closures
Legal
and other Total
At 1 January 2022 15 2 30 47
Exchange differences \u2013 \u2013 4 4
Provisions made during the year 9 \u2013 78 87
Provisions reversed during the year (1) \u2013 (6) (7)
Provisions used during the year (1) \u2013 (30) (31)
Disposal of subsidiary \u2013 \u2013 (1) (1)
At 31 December 2022 22 2 75 99
Analysis of provisions:
All figures in \u00a3 millions
2022
Property
Disposals
and closures
Legal
and other Total
Current 9 2 74 85
Non-current 13 \u2013 1 14
22 2 75 99
2021
Current 11 2 27 40
Non-current 4 \u2013 3 7
15 2 30 47
Property provisions in 2022 and 2021 relate to the simplification of the Group\u2019s property portfolio (see note 4). Disposals and closures relate
to the disposal of the Pearson Institute of Higher Education.
Legal and other includes legal claims, contract disputes and potential contract losses with the provisions utilised as the cases are settled.
Also included in legal and other are other restructuring provisions that are generally utilised within one year.
The year on year increase in provisions is mainly due to the 2022 restructuring programme (see note 4).
24. Trade and other liabilities
All figures in \u00a3 millions 2022 2021
Current
Trade payables 348 351
Sales return liability 53 83
Deferred income 340 330
Interest payable 10 42
Accruals and other liabilities 503 450
1,254 1,256
Non-current
Deferred income 60 56
Accruals and other liabilities 60 39
120 95
The carrying value of the Group\u2019s trade and other liabilities approximates its fair value. The deferred income balance comprises contract liabilities in
respect of advance payments in assessment, testing and training businesses; subscription income in school and college businesses; and obligations to
deliver digital content in future periods. In addition to the above, there are accruals of \u00a3nil (2021: \u00a3nil) and deferred income of \u00a3nil (2021; \u00a3nil) classified
as held for sale (see note 32). The increase in trade and other liabilities held by the Group is driven by an increase in accruals related to severance
arising from the 2022 restructuring programme and the recognition of deferred consideration in relation to acquisitions made in 2022.
Notes to the consolidated financial statements continued
25. Retirement benefit and other post-retirement obligations
Background
The Group operates a number of defined benefit and defined contribution retirement plans throughout the world.
The largest plan is the Pearson Pension Plan (UK Group plan) in the UK, which is sectionalised to provide both defined benefit and defined contribution
pension benefits. The defined benefit section was largely closed to new members from 1 November 2006. The defined contribution section, opened in
2003, is open to new and existing employees. Finally, there is a separate section within the UK Group plan set up for auto-enrolment.
The defined benefit section of the UK Group plan is a final salary pension plan which provides benefits to members in the form of a guaranteed level of
pension payable for life. The level of benefits depends on the length of service and final pensionable pay.
The defined contribution section of the UK Group plan operates a Reference Scheme Test (RST) pension underpin for its members. Where a member\u2019s
fund value is insufficient to purchase the RST pension upon retirement, the UK Group plan is liable for the shortfall to cover the member\u2019s RST pension.
In addition, in recent years, the scheme rules were amended to enable members who have sufficient funds to purchase an RST pension the ability to
convert their fund value into a pension in the UK Group plan as an alternative to purchasing an annuity with an insurer. The Group recognises any
assets and liabilities relating to these features of the defined contribution section as part of the overall UK Group plan obligation. From 1 January 2021,
the Group also recognised the assets and liabilities for all members of the defined contribution section of the UK Group plan, accounting for the whole
defined contribution section as a defined benefit scheme under IAS 19 \u2018Employee Benefits\u2019 as there is a risk the underpin will require the Group to pay
further contributions to the scheme.
The UK Group plan is funded with benefit payments from trustee-administered funds. The UK Group plan is administered in accordance with the Trust
Deed and Rules in the interests of its beneficiaries by Pearson Pension Trustee Limited.
At 31 December 2022, the UK Group plan had approximately 26,500 members, analysed in the following table:
All figures in % Active Deferred Pensioners Total
Defined benefit \u2013 16 33 49
Defined contribution 12 39 \u2013 51
Total 12 55 33 100
The other major defined benefit plans are based in the US. These are
also final salary pension plans which provide benefits to members in
the form of a guaranteed pension payable for life, with the level of
benefits dependent on length of service and final pensionable pay.
The majority of the US plans are fully funded.
The Group also has several post-retirement medical benefit plans
(PRMBs), principally in the US. PRMBs are unfunded but are
accounted for and valued similarly to defined benefit pension plans.
The defined benefit schemes expose the Group to actuarial risks,
such as life expectancy, inflation risks and investment risk including
asset volatility and changes in bond yields. The Group is not exposed
to any unusual, entity-specific or plan-specific risks.
KJ
Key judgements
Whether the Group will be eligible to receive the surplus
associated with the UK Group Pension Plan in recognising a
pension asset.
KE
Key areas of estimation
The determination of the pension cost and defined benefit
obligation of the Group\u2019s defined benefit pension schemes
depends on the selection of certain assumptions, which
include the discount rate, inflation rate, salary growth and
longevity.
Assumptions
The principal assumptions used for the UK Group plan and the US PRMB are shown below. Weighted average assumptions have been shown for the
other plans, which primarily relate to US pension plans.
All figures in %
2022 2021 2020
UK
Group
plan
Other
plans PRMB
UK Group
plan
Other
plans PRMB
UK Group
plan
Other
plans PRMB
Inflation 3.4 2.0 \u2013 3.3 1.4 \u2013 2.9 0.6 \u2013
Rate used to discount plan liabilities 4.9 5.3 5.3 1.9 2.8 2.6 1.4 2.2 2.1
Expected rate of increase in salaries 3.9 2.9 \u2013 3.8 2.7 \u2013 3.4 2.2 \u2013
Expected rate of increase for pensions in payment and
deferred pensions
1.95 to
5.20 \u2013 \u2013
2.35 to
5.10 \u2013 \u2013
2.05 to
5.05 \u2013 \u2013
Initial rate of increase in healthcare rate \u2013 \u2013 6.5 \u2013 \u2013 6.3 \u2013 \u2013 6.5
Ultimate rate of increase in healthcare rate \u2013 \u2013 5.0 \u2013 \u2013 5.0 \u2013 \u2013 5.0
The UK discount rate is based on corporate bond yields adjusted to reflect the duration of liabilities.
The inflation rate for the UK Group plan of 3.4% (2021: 3.3%) reflects the RPI rate. In line with changes to legislation in 2010, certain benefits have
been calculated with reference to CPI as the inflationary measure and in these instances a rate of 2.7% (2021: 2.6%) has been used. The CPI rate is
determined as a weighted average deduction from the RPI rate, and allows for the expected change to the formula for calculating RPI to be in line
with CPIH from 2030 onwards.
For the UK Group plan, the mortality base table assumptions are derived from the SAPS S3 for males and females, adjusted to reflect the observed
experience of the plan, with CMI model improvement factors. A 1.5% long-term rate improvement on the CMI 2021 model is applied for both males
and females, with a weighting to 2021 mortality experience in the CMI model of 10% to make an approximate allowance for the impact of the COVID-19
pandemic. The analysis of experience, and standard tables, do not reflect the impact of the ongoing COVID-19 pandemic, the ultimate impact of which
remains uncertain.
For the US plans, a mortality table (Pri \u2013 2012) and 2021 improvement scale (MP \u2013 2021) with generational projection for male and female annuitants
has been adopted.
Using the above tables, the remaining average life expectancy in years of a pensioner retiring at age 65 on the balance sheet date for the
UK Group plan and US plans is as follows:
All figures in years
UK US
2022 2021 2020 2022 2021 2020
Male 22.5 22.6 24.0 20.6 20.5 20.4
Female 24.7 24.8 24.3 22.6 22.5 22.4
The remaining average life expectancy in years of a pensioner retiring at age 65, 20 years after the balance sheet date, for the UK and US Group plans
is as follows:
All figures in years
UK US
2022 2021 2020 2022 2021 2020
Male 24.1 24.2 25.6 22.1 22.0 21.9
Female 26.4 26.5 26.1 24.0 23.9 23.8
Although the Group anticipates that plan surpluses will be utilised during the life of the plan to address member benefits, the Group recognises it\u2019s
pension surplus in full in respect of the UK Group plan on the basis that it is management\u2019s judgement that there are no substantive restrictions on the
return of residual plan assets in the event of a winding up of the plan after all member obligations have been met.
Notes to the consolidated financial statements continued
25. Retirement benefit and other post-retirement obligations continued
Financial statement information
The amounts recognised in the income statement are as follows:
All figures in \u00a3 millions
2022
UK Group
plan
Defined
benefit
other Sub-total
Defined
contribution PRMB Total
Current service cost 17 2 19 46 \u2013 65
Past service cost 3 \u2013 3 \u2013 \u2013 3
Administration expenses 7 \u2013 7 \u2013 \u2013 7
Total operating expense 27 2 29 46 \u2013 75
Interest on plan assets (77) (3) (80) \u2013 \u2013 (80)
Interest on plan liabilities 67 3 70 \u2013 1 71
Net finance (income)/expense (10) \u2013 (10) \u2013 1 (9)
Net income statement charge 17 2 19 46 1 66
All figures in \u00a3 millions
2021
UK Group
plan
Defined
benefit
other Sub-total
Defined
contribution PRMB Total
Current service cost 17 2 19 37 \u2013 56
Past service cost \u2013 \u2013 \u2013 \u2013 \u2013 \u2013
Administration expenses 6 \u2013 6 \u2013 \u2013 6
Total operating expense 23 2 25 37 \u2013 62
Interest on plan assets (55) (2) (57) \u2013 \u2013 (57)
Interest on plan liabilities 49 3 52 \u2013 1 53
Net finance (income)/expense (6) 1 (5) \u2013 1 (4)
Net income statement charge 17 3 20 37 1 58
All figures in \u00a3 millions
2020
UK Group
plan
Defined
benefit
other Sub-total
Defined
contribution PRMB Total
Current service cost 6 2 8 47 \u2013 55
Past service cost 1 \u2013 1 \u2013 \u2013 1
Curtailments \u2013 (1) (1) \u2013 \u2013 (1)
Administration expenses 5 \u2013 5 \u2013 \u2013 5
Total operating expense 12 1 13 47 \u2013 60
Interest on plan assets (66) (3) (69) \u2013 \u2013 (69)
Interest on plan liabilities 57 5 62 \u2013 1 63
Net finance (income)/expense (9) 2 (7) \u2013 1 (6)
Net income statement charge 3 3 6 47 1 54
The amounts recognised in the balance sheet are as follows:
All figures in \u00a3 millions
2022 2021
UK Group
plan
Other funded
plans
Other
unfunded
plans Total
UK Group
plan
Other funded
plans
Other
unfunded
plans Total
Fair value of plan assets 3,088 104 \u2013 3,192 4,125 120 \u2013 4,245
Present value of defined
benefit obligation (2,514) (106) (17) (2,637) (3,588) (123) (20) (3,731)
Net pension asset/(liability) 574 (2) (17) 555 537 (3) (20) 514
Other post-retirement medical
benefit obligation (25) (34)
Other pension accruals (10) (9)
Net retirement benefit asset 520 471
Analysed as:
Retirement benefit assets 581 537
Retirement benefit obligations (61) (66)
The following gains/(losses) have been recognised in other comprehensive income:
All figures in \u00a3 millions 2022 2021 2020
Amounts recognised for defined benefit plans 44 145 (24)
Amounts recognised for post-retirement medical benefit plans 10 4 1
Total recognised in year 54 149 (23)
The fair value of plan assets comprises the following:
All figures in %
2022 2021
UK Group
plan
Other
funded plans Total
UK Group
plan
Other
funded plans Total
Insurance 33 \u2013 33 35 \u2013 35
Equities 15 1 16 11 1 12
Fixed interest securities 7 2 9 7 2 9
Property 6 \u2013 6 5 \u2013 5
Pooled asset investment funds (including LDI) 22 \u2013 22 30 \u2013 30
Other 14 \u2013 14 9 \u2013 9
The plan assets do not include any of the Group\u2019s own financial instruments, or any property occupied by the Group. The table below further
disaggregates the plan assets into those assets which have a quoted market price in an active market and those that do not:
All figures in %
2022 2021
Quoted
market price
No quoted
market price
Quoted
market price
No quoted
market price
Insurance 33 \u2013 35 \u2013
Equities 16 \u2013 11 1
Fixed-interest securities 9 \u2013 9 \u2013
Property \u2013 6 \u2013 5
Pooled asset investment funds (including LDI) 22 \u2013 30 \u2013
Other 1 13 \u2013 9
Total 81 19 85 15
Notes to the consolidated financial statements continued
25. Retirement benefit and other post-retirement obligations continued
Financial statement information continued
The liquidity profile of the UK Group plan assets is as follows:
All figures in % 2022 2021
Liquid \u2013 call <1 month 47 51
Less liquid \u2013 call 1\u20133 months 2 \u2013
Illiquid \u2013 call >3 months 51 49
Changes in the values of plan assets and liabilities of the retirement benefit plans are as follows:
All figures in \u00a3 millions
2022 2021
UK Group
plan
Other
plans Total
UK Group
plan
Other
plans Total
Fair value of plan assets
Opening fair value of plan assets 4,125 120 4,245 3,588 119 3,707
Recognition of Money Purchase assets \u2013 \u2013 \u2013 513 \u2013 513
Exchange differences \u2013 12 12 \u2013 2 2
Interest on plan assets 77 3 80 55 2 57
Return on plan assets excluding interest (1,000) (18) (1,018) 71 6 77
Contributions by employer 15 2 17 14 1 15
Benefits paid (136) (15) (151) (123) (10) (133)
Contributions by employees 7 \u2013 7 7 \u2013 7
Closing fair value of plan assets 3,088 104 3,192 4,125 120 4,245
Present value of defined benefit obligation
Opening defined benefit obligation (3,588) (143) (3,731) (3,178) (156) (3,334)
Recognition of Money Purchase liabilities \u2013 \u2013 \u2013 (513) \u2013 (513)
Exchange differences \u2013 (14) (14) \u2013 (1) (1)
Disposals \u2013 1 1 \u2013 \u2013 \u2013
Current service cost (17) (2) (19) (17) (2) (19)
Past service cost (3) \u2013 (3) \u2013 \u2013 \u2013
Administration expenses (7) \u2013 (7) (6) \u2013 (6)
Interest on plan liabilities (67) (3) (70) (49) (3) (52)
Actuarial (losses)/gains \u2013 experience (25) (2) (27) (100) 3 (97)
Actuarial gains/(losses) \u2013 demographic 14 \u2013 14 (1) \u2013 (1)
Actuarial gains \u2013 financial 1,050 25 1,075 160 6 166
Contributions by employees (7) \u2013 (7) (7) \u2013 (7)
Benefits paid 136 15 151 123 10 133
Closing defined benefit obligation (2,514) (123) (2,637) (3,588) (143) (3,731)
From 1 January 2021, the Group has recognised the assets and liabilities for all members of the defined contribution section of the UK Group plan,
accounting for the whole defined contribution section as a defined benefit scheme under IAS 19 \u2018Employee Benefits\u2019. The net impact on the balance
sheet was \u00a3nil, however, the gross amounts of \u00a3513m can be seen in the table above. Subsequent movements to those assets and liabilities are
included in the relevant lines in the table above.
The weighted average duration of the defined benefit obligation is 13 years for the UK and six years for the US.
Changes in the value of the US PRMB are as follows:
All figures in \u00a3 millions 2022 2021
Opening defined benefit obligation (34) (39)
Exchange differences (3) (1)
Interest on plan liabilities (1) (1)
Actuarial gains \u2013 experience 5 2
Actuarial gains \u2013 financial 5 2
Benefits paid 3 3
Closing defined benefit obligation (25) (34)
Funding
The UK Group plan is self-administered with the plan\u2019s assets being held independently of the Group in trust. The trustee of the UK Group plan is
required to act in the best interest of the plan\u2019s beneficiaries. The most recent triennial actuarial valuation for funding purposes was completed as at
1 January 2021 and this valuation revealed a technical provision funding surplus of \u00a3160m. The UK Group plan expects to be able to provide benefits
(in accordance with the plan rules) with a very low level of reliance on future funding from the Group.
Assets of the UK Group plan are divided into two main elements: liability matching assets and return seeking assets. The UK Group plan\u2019s investment
strategy allocates approximately 95% to matching assets and 5% to return-seeking assets.
Liability matching assets are assets that produce cash flows that can be expected to match the cash flows for a proportion of the membership, and
include a liability-driven investment mandate (LDI) for which a Qualifying Investor Alternative Investment Fund (QIAIF) was established, managed by a
subsidiary of Legal & General Investment Management. The QIAIF invests in UK bonds, interest rate/inflation swaps and other derivative instruments
in order to reduce interest rate and inflation risks using accurate cash flow matching and risk control. Other liability matching assets include pensioner
buy-in insurance policies, bonds and inflation-linked property and infrastructure.
Following the purchase of buy-in policies with Legal & General and Aviva in 2017 and 2019, 95% of the UK Group plan\u2019s pensioner liabilities were
matched with buy-in policies. These transfer significant longevity risk to Aviva and Legal & General, reducing the pension risks being underwritten by
the Group and providing additional security for members.
Return-seeking assets are assets invested with a longer-term horizon to generate the returns needed to provide the remaining expected cash flows
for the beneficiaries, and include diversified growth funds, property and alternative asset classes.
Recent economic and geopolitical uncertainty has increased volatility in the valuation of certain assets, in particular the LDI and insurance contracts.
However, these movements are offset by equivalent movements in the defined benefit obligation. The UK Group plan divides its assets between a
number of investment managers and across different types of assets, as such there is no significant concentration of risk.
Regular employer contributions to the UK Group plan in respect of the defined benefit sections are estimated to be \u00a3nil for 2023.
Sensitivities
The effect of a one percentage point increase and decrease in the discount rate on the defined benefit obligation and the total pension expense
is as follows:
All figures in \u00a3 millions
2022
1% increase 1% decrease
Effect:
(Decrease)/increase in defined benefit obligation \u2013 UK Group plan (209) 261
(Decrease)/increase in defined benefit obligation \u2013 US plan (7) 7
The effect of members living one year more or one year less on the defined benefit obligation is as follows:
All figures in \u00a3 millions
2022
One year
increase
One year
decrease
Effect:
Increase/(decrease) in defined benefit obligation \u2013 UK Group plan 59 (59)
Increase/(decrease) in defined benefit obligation \u2013 US plan 3 (2)
Notes to the consolidated financial statements continued
25. Retirement benefit and other post-retirement obligations continued
The effect of a half percentage point increase and decrease in the inflation rate is as follows:
All figures in \u00a3 millions
2022
0.5% increase 0.5% decrease
Effect:
Increase/(decrease) in defined benefit obligation \u2013 UK Group plan 59 (57)
Increase/(decrease) in defined benefit obligation \u2013 US plan \u2013 \u2013
The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant, although in practice this is
unlikely to occur and changes in some assumptions may be correlated. When calculating these sensitivities, the same method has been applied to
calculate the defined benefit obligation as has been applied when calculating the liability recognised in the balance sheet. This methodology is the
same as prior periods.
26. Share-based payments
The Group recognised the following charges in the income statement in respect of its equity-settled share-based payment plans:
All figures in \u00a3 millions 2022 2021 2020
Pearson plans 38 28 29
The Group operates the following equity-settled employee option and share plans:
Worldwide Save for Shares Plan \u2013 The Group has a Worldwide Save for Shares Plan. Under these plans, employees can save a portion of their monthly
salary over a period of three years. At the end of this period, the employee has the option to purchase ordinary shares with the accumulated funds at a
purchase price equal to 80% of the market price prevailing at the time of the commencement of the employee\u2019s participation in the plan. Options that
are not exercised within six months of the end of the savings period lapse unconditionally.
Employee Stock Purchase Plan \u2013 In 2000, the Group established an Employee Stock Purchase Plan which allows all employees in the US to save a
portion of their monthly salary over six-month periods. At the end of the period, the employee has the option to purchase American Depositary
Receipts (ADRs) with their accumulated funds at a purchase price equal to 85% of the lower of the market prices prevailing at the beginning or end
of the period.
Long-Term Incentive Plan \u2013 The plan was first introduced in 2001 and from time to time the plan rules are renewed. The plan consists of restricted
shares. The vesting of restricted shares is normally dependent on continuing service over a three to five-year period, and in the case of Executive
Directors and senior management upon the satisfaction of corporate performance targets over a three-year period. These targets may be based
on market and/or non-market performance criteria. Restricted shares awarded to Executive Directors in May 2022, May 2021 and May 2020 vest
dependent on relative total shareholder return, return on invested capital and adjusted earnings per share growth. These awards are in addition to
the 2020 one-off co-investment award for the Chief Executive, vesting in three equal tranches based on market and non-market performance criteria.
The applicable market condition for the vesting of the final tranche is on total shareholder return. Other restricted shares awarded in 2022, 2021 and
2020 generally vest depending on continuing service over periods of up to four years. Included within the total share-based payments charge in 2022
was \u00a33m (2021: \u00a3nil; 2020: \u00a3nil) in respect of remuneration for post-acquisition services for recent acquisitions, which was included within other net
gains and losses in the income statement.
Management Incentive Plan \u2013 The plan was introduced in 2017 combining the Group\u2019s Annual Incentive Plan and Long-Term Incentive Plan for senior
management. The number of shares to be granted to participants is dependent on Group performance in the calendar year preceding the date of
grant (on the same basis as the Annual Incentive Plan). Subsequently, the shares vest dependent on continuing service over a three-year period, and
additionally, in the case of the Pearson Executive Management team, upon satisfaction of non-market based performance criteria as determined by
the Remuneration Committee. Restricted shares awarded as part of the 2020 Management Incentive Plan were granted in April 2021. In 2021 this
scheme was replaced by the Long-Term Incentive Plan for senior management.
The following shares were granted under restricted share arrangements:
2022
2021
Number of
shares
000s
Weighted average
fair value
\u00a3
Number of
shares
000s
Weighted average
fair value
\u00a3
Long-Term Incentive Plan 7,584 7.61 6,394 7.27
Management Incentive Plan \u2013 \u2013 630 7.71
In 2022, \u00a326m of shares vested across the Worldwide Save for Shares Plan, the Long-Term Incentive Plan and the Management Incentive Plan.
The fair value of shares granted under the Long-Term Incentive Plan and the Management Incentive Plan that vest unconditionally is determined using
the share price at the date of grant. Participants under the plans are entitled to dividends during the vesting period and therefore the share price is
not discounted.
Restricted shares with a market performance condition were valued by an independent actuary using a Monte Carlo model. Restricted shares with
a non-market performance condition were fair valued based on the share price at the date of grant. Non-market performance conditions are taken
into consideration by adjusting the number of shares expected to vest based on the most likely outcome of the relevant performance criteria.
27. Share capital and share premium
Number of
shares
000s
Share
capital
\u00a3m
Share
premium
\u00a3m
At 1 January 2021 753,258 188 2,620
Issue of ordinary shares \u2013 share option schemes 3,544 1 6
Purchase of own shares \u2013 \u2013 \u2013
At 31 December 2021 756,802 189 2,626
Issue of ordinary shares \u2013 share option schemes 1,199 \u2013 7
Purchase of own shares (42,268) (10) \u2013
At 31 December 2022 715,733 179 2,633
The ordinary shares have a par value of 25p per share (2021: 25p per share). All issued shares are fully paid. All shareholders are entitled to receive
dividends and vote at general meetings of the company. All shares have the same rights.
On 24 February 2022, the Board approved a \u00a3350m share buyback programme in order to return capital to shareholders. During the year,
approximately 42m shares were bought back and cancelled at a cost of \u00a3353m. The nominal value of these shares, \u00a310m, was transferred to
the capital redemption reserve, and the remainder of the purchase price is recorded within retained earnings. In 2021, no shares were bought back.
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximising the return
to shareholders through the optimisation of the debt and equity balance.
The capital structure of the Group consists of debt (see note 18), cash and cash equivalents (see note 17) and equity attributable to equity holders
of the parent, comprising issued capital, reserves and retained earnings.
The Group reviews its capital structure on a regular basis and will balance its overall capital structure through payments of dividends, new share issues
as well as the issue of new debt or the redemption of existing debt in line with the financial risk policies outlined in note 19.
28. Treasury shares
Number of
shares
000s \u00a3m
At 1 January 2021 903 7
Purchase of treasury shares 2,158 16
Newly issued treasury shares 2,500 1
Release of treasury shares (3,990) (12)
At 31 December 2021 1,571 12
Purchase of treasury shares 4,513 37
Release of treasury shares (4,220) (34)
At 31 December 2022 1,864 15
The Group holds Pearson plc shares in trust to satisfy its obligations under its restricted share plans (see note 26). These shares, representing 0.3%
(2021: 0.2%) of called-up share capital, are treated as treasury shares for accounting purposes and have a par value of 25p per share.
The nominal value of Pearson plc treasury shares amounts to \u00a30.5m (2021: \u00a30.4m). Dividends on treasury shares are waived.
At 31 December 2022, the market value of Pearson plc treasury shares was \u00a318m (2021: \u00a310m).
Notes to the consolidated financial statements continued
29. Other comprehensive income
All figures in \u00a3 millions
2022
Attributable to equity holders of the company
Non-
controlling
interest Total
Fair value
reserve
Translation
reserve
Retained
earnings Total
Items that may be reclassified to the income statement
Net exchange differences on translation of foreign operations \u2013 328 \u2013 328 2 330
Currency translation adjustment disposed \u2013 (5) \u2013 (5) \u2013 (5)
Attributable tax \u2013 \u2013 4 4 \u2013 4
Items that are not reclassified to the income statement
Fair value gain on other financial assets 18 \u2013 \u2013 18 \u2013 18
Attributable tax \u2013 \u2013 1 1 \u2013 1
Remeasurement of retirement benefit obligations \u2013 \u2013 54 54 \u2013 54
Attributable tax \u2013 \u2013 (12) (12) \u2013 (12)
Other comprehensive income/(expense) for the year 18 323 47 388 2 390
All figures in \u00a3 millions
2021
1
Attributable to equity holders of the company
Non-
controlling
interest Total
Fair value
reserve
Translation
reserve
Retained
earnings Total
Items that may be reclassified to the income statement
Net exchange differences on translation of foreign operations \u2013 (6) \u2013 (6) \u2013 (6)
Currency translation adjustment disposed \u2013 4 \u2013 4 \u2013 4
Attributable tax \u2013 \u2013 10 10 \u2013 10
Items that are not reclassified to the income statement
Fair value gain on other financial assets 4 \u2013 \u2013 4 \u2013 4
Attributable tax \u2013 \u2013 (1) (1) \u2013 (1)
Remeasurement of retirement benefit obligations \u2013 \u2013 149 149 \u2013 149
Attributable tax \u2013 \u2013 (61) (61) \u2013 (61)
Other comprehensive income/(expense) for the year 4 (2) 97 99 \u2013 99
1. Comparative balances have been restated \u2013 see Note 1b.
All figures in \u00a3 millions
2020
1
Attributable to equity holders of the company
Non-
controlling
interest Total
Fair value
reserve
Translation
reserve
Retained
earnings Total
Items that may be reclassified to the income statement
Net exchange differences on translation of foreign operations \u2013 (109) \u2013 (109) \u2013 (109)
Currency translation adjustment disposed \u2013 (70) \u2013 (70) \u2013 (70)
Attributable tax \u2013 \u2013 (13) (13) \u2013 (13)
Items that are not reclassified to the income statement
Fair value gain/(loss) on other financial assets (12) \u2013 \u2013 (12) \u2013 (12)
Attributable tax \u2013 \u2013 \u2013 \u2013 \u2013 \u2013
Remeasurement of retirement benefit obligations \u2013 \u2013 (23) (23) \u2013 (23)
Attributable tax \u2013 \u2013 2 2 \u2013 2
Other comprehensive income/(expense) for the year (12) (179) (34) (225) \u2013 (225)
1. Comparative balances have been restated \u2013 see Note 1b.
30. Business combinations
On 28 January 2022, the Group acquired 100% of the share capital in Credly Inc (Credly), having previously held a 19.9% interest in the company. Credly
was founded in 2012 in New York and is a digital credential service provider whose platform enables customers to design, create, issue and manage
digital credentials. It now forms part of the Workforce Skills division. Total consideration was \u00a3149m comprising upfront cash consideration of \u00a3107m,
Pearson\u2019s existing interest valued at \u00a331m and \u00a311m of deferred consideration. The deferred consideration is payable in two years, with additional
amounts being payable if certain revenue and non-financial targets are met, and dependent on continuing employment, and therefore these additional
amounts will be expensed over the period and are not treated as consideration.
On 28 April 2022, the Group acquired 100% of the share capital of ATI STUDIOS A.P.P.S S.R.L (Mondly), a global online learning platform offering
customers learning in English and 40 other languages via its app, website, virtual reality and augmented reality products. It now forms part of the
English Language Learning division. Total consideration was \u00a3135m comprising upfront cash consideration of \u00a3105m, and deferred consideration of
\u00a330m. The deferred consideration is payable over the next two years with no performance conditions attached. In addition, a further $29.6m (c\u00a324m)
of cash and $10m (c\u00a38m) in shares will be paid over the next four years, dependent on continuing employment, and therefore these additional
amounts will be expensed over the period and are not treated as consideration.
These transactions have resulted in the recognition of \u00a3202m of goodwill, which represents the expected growth through new products and
customers, the workforce and know-how acquired and the anticipated synergies, none of which can be recognised as separate intangible assets.
The goodwill is not deductible for tax purposes.
Intangible assets of \u00a399m have been recognised in respect of Credly and Mondly. The valuations of these assets were carried out by third party
specialists, and were based on discounted cash flow models. The key assumptions that feed into the valuations are the cash flow forecasts, revenue
projections from existing customers, forecasted profit margins and discount rates. For Credly, \u00a349m of intangible assets were recognised, mainly
relating to the existing customer relationships that will be amortised over 20 years, and technology which will be amortised over five years. For Mondly,
\u00a350m of intangible assets were recognised, the majority of which relates to acquired technology, and will be amortised over periods up to seven years.
In 2022, the Group also made three smaller acquisitions in the period for total consideration of \u00a311m. In December 2022, the Group announced that
it had signed a deal to acquire 100% of Personnel Decisions Research Institutes, LLC, the transaction has not yet completed.
In September 2021, Pearson completed the acquisition of 100% of the share capital of Faethm Holdings Pty Limited (Faethm), having already held 9%
of the share capital previously. Faethm uses artificial intelligence and analytics services to help governments, companies and workers understand the
dynamic forces shaping the labour market. Faethm now forms part of the Workforce Skills division. The total consideration for the transaction was
\u00a365m, which included \u00a310m of contingent consideration, dependent upon meeting certain earnings targets. The contingent consideration was valued
at the net present value of the Group\u2019s best estimate of the amount that will be payable. In 2022, contingent consideration amounts have been settled
resulting in the recognition of an \u00a38m gain in the income statement within other net gains and losses.
In addition, the Group made two additional acquisitions of subsidiaries for total consideration of \u00a311m. In both cases, the Group acquired 100% of the
share capital of the respective entities. Opinion Interactive LLC (also known as Spotlight Education) was acquired in February 2021. MZ Development
Inc. was acquired in July 2021. Both form part of the Assessment & Qualifications division.
The Group also made additional investments in associates, which are detailed in note 12, and are not included below.
Details of the fair values of the assets and liabilities recognised at the acquisition date and the related consideration is shown in the table below.
Amounts for intangible assets and goodwill for Mondly are provisional as management finalise reviews of the asset valuations. There were no
significant acquisitions in 2020.
All figures in \u00a3 millions
2022
Credly
2022
Mondly
2022
Other
2022
Total
2021
Total
2020
Total
Intangible assets 49 50 11 110 27 \u2013
Deferred tax asset 7 1 \u2013 8 11 \u2013
Trade and other receivables 6 2 \u2013 8 2 \u2013
Cash and cash equivalents 12 1 \u2013 13 4 \u2013
Trade and other liabilities (18) (8) \u2013 (26) (5) \u2013
Deferred tax liabilities (12) (8) (2) (22) (6) \u2013
Net assets acquired 44 38 9 91 33 \u2013
Goodwill 105 97 2 204 43 \u2013
Total 149 135 11 295 76 \u2013
Satisfied by:
Cash consideration 107 105 11 223 54 \u2013
Contingent or deferred consideration 11 30 \u2013 41 16 \u2013
Fair value of existing investment 31 \u2013 \u2013 31 6 \u2013
Total consideration 149 135 11 295 76 \u2013
Credly generated revenues of \u00a313m and a loss after tax of \u00a34m for the period from acquisition date to 31 December 2022. Mondly generated
revenues of \u00a311m and a profit after tax of \u00a33m for the period from acquisition date to 31 December 2022. If the acquisitions had occurred on 1
January 2022, the Group\u2019s revenue would have been \u00a37m higher and the profit after tax would not have been materially different.
Notes to the consolidated financial statements continued
30. Business combinations continued
Total acquisition related costs of \u00a320m were recognised in 2022 within other net gains and losses.
The net cash outflows related to the acquisitions are set out in the table below. In addition to the current year acquisitions, the other net cash outflows
on acquisition of subsidiaries in 2022 and 2021 relate to deferred payments for prior year acquisitions.
All figures in \u00a3 millions
2022
Total
2021
Total
2020
Total
Cash flow on acquisitions
Cash \u2013 current year acquisitions (223) (54) \u2013
Cash and cash equivalents acquired 13 4 \u2013
Deferred payments for prior year acquisitions and other items (10) (4) (6)
Acquisition costs paid (8) (1) \u2013
Net cash outflow (228) (55) (6)
31. Disposals and business closures
In March 2021, the Group announced that it was launching a strategic review of its international courseware local publishing businesses. In 2022, the
Group disposed of its interests in the Canadian educational publisher (ERPI), Pearson Italia S.p.A, Stark Verlag GmbH, Austin Education (Hong Kong)
Limited, Pearson South Africa (Pty) Ltd and various other South African companies. Total cash consideration received was \u00a3287m resulting in a pre-tax
gain on disposal of \u00a342m. All entities disposed of were previously in the Strategic Review segment. \u00a35m of losses arose from other immaterial disposals
and costs related to the wind-down of certain businesses.
Whether the associated results and cash flows of the businesses disposed in 2022 should be classified and presented as discontinued operations
is a significant judgement. The Group's judgement is that the results and cash flows of the related businesses should not be classified and presented
as discontinued operations. The basis of this judgement is that the businesses disposed do not constitute a separate major line of business or
geographical area of operations. The Group will continue to operate in the international K12 courseware market and in all geographical areas where
disposals have taken place. All of the businesses subject to this judgement are within the Strategic Review segment and represent \u00a3126m of sales for
the year ended 31 December 2022 out of the total sales in the Strategic Review segment of \u00a3154m. If the Group had concluded that these businesses
represented discontinued operations, their results and the related gains on disposal would not have been included within each of the continuing
operations income statement lines. Profit for the period from continuing operations would have been \u00a352m lower and this amount would have been
separately presented as profit for the period from discontinued operations as a single line item. Adjusted operating profit would be unchanged.
In February 2021, the Group completed the sale of its interests in the Pearson Institute of Higher Education (PIHE) in South Africa resulting in a pre-tax
loss of \u00a35m. In October 2021, the sale of the Group\u2019s interests in K12 Sistemas in Brazil was also completed for consideration of \u00a3108 million, resulting
in a gain on sale of \u00a384m. There were no other business disposals in 2021 and additional losses of \u00a314m relate to other disposal costs including costs
related to the wind-down of certain businesses under strategic review.
In April 2020, the Group completed the sale of the remaining 25% interest in Penguin Random House resulting in a pre-tax profit of \u00a3180m.
There were no other material disposals in 2020. Deferred proceeds relating to the K12 sale were received in 2022, 2021 and 2020 (see note 14).
None of the 2021 or 2020 disposals met the criteria to be considered a discontinued operation on the basis that they did not represent major lines
of business or geographical areas of operations.
The table below shows a summary of the assets and liabilities disposed of:
All figures in \u00a3 millions Notes 2022 2021 2020
Disposal of subsidiaries and associates
Intangible assets, including goodwill (77) (3) \u2013
Property, plant and equipment (11) (48) \u2013
Investments in joint ventures and associates \u2013 \u2013 (418)
Intangible assets \u2013 product development (39) (6) \u2013
Inventories (33) (2) \u2013
Trade and other receivables (106) (6) \u2013
Deferred tax (12) \u2013 \u2013
Cash and cash equivalents (excluding overdrafts) (21) (24) \u2013
Provisions for other liabilities and charges 1 3 \u2013
Retirement benefit obligations 2 \u2013 \u2013
Trade and other liabilities 52 4 \u2013
Financial liabilities \u2013 borrowings 8 67 \u2013
Net assets disposed (236) (15) (418)
Cumulative currency translation adjustment 5 (4) 70
Cash proceeds 291 108 531
Deferred proceeds 2 \u2013 \u2013
Costs of disposal (25) (24) 1
Gain on disposal 37 65 184
All figures in \u00a3 millions 2022 2021 2020
Cash flow from disposals
Proceeds \u2013 current year disposals 291 108 531
Proceeds \u2013 prior year disposals 86 16 105
Cash and cash equivalents disposed (21) (24) \u2013
Costs and other disposal liabilities paid (23) (17) (5)
Net cash inflow 333 83 631
Analysed as:
Cash inflow from disposal of subsidiaries 333 83 100
Cash inflow from disposal of joint ventures and associates \u2013 \u2013 531
32. Held for sale At 31 December 2022, the Group has entered into an agreement to dispose of a property that was previously accounted for as investment property. The sale is expected to complete in 2023. Two other properties are currently also in the process of being sold, with the sales also expected to complete in 2023. The properties are all classified as held for sale and have a carrying value of \u00a316m as at 31 December 2022. At 31 December 2021, only one property, which was disposed of in 2022, was classified as held for sale, and had a carrying value of \u00a37m as at 31 December 2021. The businesses that were included in the Strategic Review segment as at 31 December 2021 did not meet the criteria for classification as held for sale as at 31 December 2021 on the basis that the Group was not sufficiently advanced in the sales process at that time for the sale to be considered highly probable. The held for sale balances are analysed as follows: All figures in \u00a3 millions 2022 Total 2021 Total Non-current assets Property, plant and equipment 16 7 16 7 Assets classified as held for sale 16 7 Net assets classified as held for sale 16 7 Notes to the consolidated financial statements continued 33. Cash generated from operations
Operating cash flow and free cash flow are non-GAAP measures and have been disclosed as they are part of the Group\u2019s corporate and operating
measures. These measures are presented in order to align the cash flows with corresponding adjusted profit measures. The table below reconciles
the statutory profit and cash flow measures to the corresponding adjusted measures. The table on the next page reconciles operating cash flow to
net debt.
all figures in \u00a3 million
Statutory
measures
Cost of major
restructuring
Other
net
gains
and
losses
Intangible
charges
UK Pension
discretionary
increases
Purchase/
disposal of
PPE and
software*
Net addition
of right-of-use
assets*
Dividends
from joint
ventures
and
associates
Adjusted
measures
2022
Operating profit
Net Cash generated from
operations
271 150 (24) 56 3 \u2013 \u2013 \u2013 456 Adjusted
operating
profit
527 35 \u2013 \u2013 \u2013 (133) (29) 1 401 Operating
cash flow
2021
Operating profit
Net Cash generated from
operations
183 214 (63) 51 \u2013 \u2013 \u2013 \u2013 385 Adjusted
operating
profit
570 24 \u2013 \u2013 \u2013 (176) (30) \u2013 388 Operating
cash flow
2020
Operating profit
Net Cash generated from
operations
411 \u2013 (178) 80 \u2013 \u2013 \u2013 \u2013 313 Adjusted
operating
profit
450 38 \u2013 \u2013 \u2013 (134) (43) 4 315 Operating
cash flow
* Includes Investment property
All figures in \u00a3 millions 2022 2021 2020
Operating cash flow 401 388 315
Tax paid (109) (177) 2
Net finance costs paid (35) (54) (50)
Net costs paid for major restructuring (35) (24) (38)
Free cash flow 222 133 229
Dividends paid (including to non-controlling interests) (157) (149) (147)
Net movement of funds from operations 65 (16) 82
Acquisitions and disposals 105 62 619
Disposal of lease liabilities 8 67 \u2013
Loans repaid \u2013 \u2013 48
Net equity transactions (383) (10) (176)
Other movements on financial instruments (2) 10 (20)
Movement in net debt (207) 113 553
Opening net debt (350) (463) (1,016)
Closing net debt (557) (350) (463)
33. Cash generated from operations continued Net cash generated from operations is translated at an exchange rate approximating the rate at the date of cash flow. The difference between this rate and the average rate used to translate profit gives rise to a currency adjustment in the reconciliation between net profit and net cash generated from operations. This adjustment reflects the timing difference between recognition of profit and the related cash receipts or payments. Operating cash flow and total free cash flow are non-GAAP (non-statutory) measures and have been disclosed and reconciled in the above table as they are commonly used by investors to measure the cash performance of the Group. In the cash flow statement, proceeds from sale of property, plant and equipment comprise: All figures in \u00a3 millions 2022 2021 Net book amount 9 4 Profit/(loss) on sale of property, plant and equipment 5 (4) Proceeds from sale of property, plant and equipment 14 \u2013 The movements in the Group\u2019s current and non-current borrowings are as follows: All figures in \u00a3 millions 2021 Fair value and other movements Foreign exchange movements Financing cash flows Transfer from non-current to current New leases/ disposal of leases 2022 Financial liabilities Non-current borrowings 1,245 (14) 61 (76) (92) 31 1,155 Current borrowings 157 (10) 16 (188) 92 (1) 66 Total 1,402 (24) 77 (264) \u2013 30 1,221 All figures in \u00a3 millions 2020 Fair value and other movements Foreign exchange movements Financing cash flows Transfer from non-current to current New leases/ disposal of leases 2021 Financial liabilities Non-current borrowings 1,458 (20) 3 \u2013 (160) (36) 1,245 Current borrowings 248 9 (4) (255) 160 (1) 157 Total 1,706 (11) (1) (255) \u2013 (37) 1,402 Non-current borrowings include bonds, derivative financial instruments and leases. Current borrowings include loans repayable within one year, derivative financial instruments and leases, but exclude overdrafts classified within cash and cash equivalents. 34. Contingencies, other liabilities and commitments The total exposure in relation to this issue is calculated to be \u00a3105m (excluding interest) with a provision of \u00a363m now included in the results representing our estimate of the expected value. At 31 December 2021, it was considered to be a contingent liability. This issue is specific to periods up to 2018 and is not a continuing exposure. The Group is under assessment from the tax authorities in Brazil challenging the deduction for tax purposes of goodwill amortisation for the years 2012 to 2017. Similar assessments may be raised for other years. Potential total exposure (including possible interest and penalties) could be up to BRL 1,212m (\u00a3190m) up to 31 December 2022. Such assessments are common in Brazil. The Group believes that the likelihood that the tax authorities will ultimately prevail is low and that the Group\u2019s position is strong. At present, the Group believes no provision is required. The Group is also under assessment from the UK tax authorities in relation to an issue related to the UK\u2019s FCPE legislation with the relevant years being 2019 to 2021. The maximum exposure is calculated to be \u00a344m, with a provision of \u00a313m currently held in relation to this issue. The provision is calculated considering a range of possible outcomes and applying a probability to each, resulting in a weighted average outcome. The possible outcomes considered range from no liability through to the full exposure (\u00a344m). This issue is specific to 2019 to 2021 and is not a continuing exposure. At the balance sheet date there were no commitments for capital expenditure contracted for but not yet incurred. Commitments in respect of leases are shown in note 35. KJ Key judgements \u2014 The application of tax legislation in relation to provisions for uncertain tax positions. KE Key areas of estimation \u2014 The level of provisions required in relation to uncertain tax positions is complex and each matter is separately assessed. The estimation of future settlement amounts is based on a number of factors including the status of the unresolved matter, clarity of legislation, range of possible outcomes and the statute of limitations. There are contingent Group liabilities that arise in the normal course of business in respect of indemnities, warranties and guarantees in relation to former subsidiaries and in respect of guarantees in relation to subsidiaries, joint ventures and associates. In addition, there are contingent liabilities of the Group in respect of unsettled or disputed tax liabilities, legal claims, contract disputes, royalties, copyright fees, permissions and other rights. None of these claims are expected to result in a material gain or loss to the Group. On 25 April 2019, the European Commission published the full decision that the United Kingdom controlled foreign company group financing partial exemption (FCPE) partially constitutes State Aid. This decision was appealed by the UK Government and other parties. On 8 June 2022, the EU General Court dismissed the appeal following which it has been concluded that a provision is now required in relation to this issue. Notes to the consolidated financial statements continued 35. Leases
The Group\u2019s lease portfolio consists of approximately 720 property leases, mainly offices and test centres, together with a number of vehicle and
equipment leases. The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12
months or less and leases of low-value assets. The Group recognises the lease payments associated with these leases as an expense on a straight-line
basis over the lease term.
As a lessee:
The amounts recognised in the income statement are as follows:
All figures in \u00a3 millions Note 2022 2021 2020
Interest on lease liabilities (25) (27) (41)
Expenses relating to short-term leases \u2013 \u2013 (1)
Depreciation of right-of-use assets 10 (46) (49) (68)
Impairment of right-of-use assets 10 (34) (119) (4)
Lease liabilities are included within financial liabilities \u2013 borrowings in the balance sheet, see note 18. The maturities of the Group\u2019s lease liabilities are
as follows:
All figures in \u00a3 millions 2022 2021
Less than one year 94 92
One to five years 320 318
More than five years 332 394
Total undiscounted lease liabilities 746 804
Lease liabilities included in the balance sheet 605 633
Analysed as:
Current 71 68
Non-current 534 565
There are no lease liabilities classified as held for sale.
The amounts recognised in the cash flow statement are as follows:
All figures in \u00a3 millions 2022 2021 2020
Total cash outflow for leases as a lessee 118 115 133
At the balance sheet date commitments for capital leases contracted for but not yet incurred were \u00a35m (2021: \u00a33m). Extension and termination
options and variable lease payments are not significant within the lease portfolio. Short-term leases to which the Group is committed at the balance
sheet date are similar to the portfolio of short-term leases to which the short-term lease expense is disclosed above.
As a lessor:
In the event that the Group has excess capacity in its leased offices and warehouses, the Group subleases some of its properties under operating and
finance leases.
The amounts recognised in the income statement are as follows:
All figures in \u00a3 millions 2022 2021 2020
Interest on lease receivables 5 6 9
Income from subleasing right-of-use assets (within other income) 4 2 7
The amounts recognised in the cash flow statement are as follows:
All figures in \u00a3 millions 2022 2021 2020
Total cash inflow for leases as a lessor 23 27 50
35. Leases continued The following table sets out the maturity analysis of lease payments receivable for subleases classified as operating leases, showing the undiscounted lease payments to be received after the reporting date, and subleases classified as finance leases showing the undiscounted lease payments to be received after the reporting date and the net investment in the finance lease receivable. During the year, the investment in finance lease receivable increased by \u00a36m (2021: decreased \u00a315m), primarily due to new finance subleases entered into in excess of payments received. All figures in \u00a3 millions Operating leases Finance leases 2022 Total 2021 Total 2020 Total Less than one year 3 21 24 21 24 One to two years 5 23 28 18 24 Two to three years 5 23 28 20 18 Three to four years 5 23 28 21 18 Four to five years 5 24 29 20 18 More than five years 21 23 44 41 56 Total undiscounted lease payments receivable 44 137 181 141 158 Unearned finance income (16) Net investment in finance lease receivable 121 36. Related party transactions Joint ventures and associates In 2021, the Group acquired a 40% interest in Academy of Pop and is accounting for the investment as an associate. At 31 December 2022, the Group had a current liability payable to Academy of Pop of \u00a35m (2021: \u00a37m), which relates to the Group\u2019s initial capital contribution that had not yet been paid as at 31 December 2022. This balance was paid in early 2023. Key management personnel Key management personnel are deemed to be the members of the Pearson Executive Management team (see pages 60-61). It is this Committee which had responsibility for planning, directing and controlling the activities of the Group in 2022. Key management personnel compensation is disclosed below: All figures in \u00a3 millions 2022 2021 2020 Short-term employee benefits 7 6 6 Retirement benefits 1 1 1 Share-based payment costs 9 8 6 Total 17 15 13 Short-term employee benefits and retirement benefits exclude Executive Directors which are shown on page 101 of the Directors Remuneration Report. There were no other material related party transactions. No guarantees have been provided to related parties. 37. Events after the balance sheet date In February 2023, the Group renegotiated its revolving credit facility, reducing the maximum facility to $1bn. Pearson holds investments in unlisted securities with a value at 22 December 2022 of \u00a3133m. Some of the businesses relevant to this investment, bank with Silicon Valley Bank which collapsed in early March 2023. Given the US Government has announced that it will guarantee all deposits held at Silicon Valley Bank, any subsequent risk to the valuation of these investments is considered by management to be low, but possible. Notes to the consolidated financial statements continued 38. Accounts and audit exemptions
The Pearson plc subsidiary companies listed below are exempt from the requirements of the Companies Act 2006 relating to the audit of individual
financial statements by virtue of section 479A.
Company number
Aldwych Finance Limited 04720439
Education Development International plc 03914767
Faethm Limited 11842984
Longman Group (Overseas Holdings) Limited 00690236
Pearson Australia Finance Unlimited 05578463
Pearson Canada Finance Unlimited 05578491
Pearson Dollar Finance plc 05111013
Pearson Dollar Finance Two Limited 06507766
Pearson Education Holdings Limited 00210859
Pearson Education Investments Limited 08444933
Pearson Education Limited 00872828
Pearson International Finance Limited 02496206
Pearson Loan Finance No. 3 Limited 05052661
Pearson Loan Finance No. 4 Limited 02635107
Company number
Pearson Loan Finance No. 5 Limited 12017252
Pearson Loan Finance No. 6 Limited 12030662
Pearson Loan Finance Unlimited 05144467
Pearson Management Services Limited 00096263
Pearson Overseas Holdings Limited 00145205
Pearson Pension Trustee Services Limited 10803853
Pearson Professional Assessments Limited 04904325
Pearson Strand Limited 08561316
Pearson Services Limited 01341060
Pearson Shared Services Limited 04623186
Pearson Strand Finance Limited 11091691
PVNT Limited 08038068
TQ Global Limited 07802458
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfNotesAndOtherExplanatoryInformationExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-700": {
"value": "General information Pearson plc (\u2018the company\u2019), its subsidiaries and associates (together \u2018the Group\u2019) are international businesses covering educational courseware, assessments and services. The company is a public limited company incorporated in England and Wales and domiciled in the United Kingdom. The address of its registered office is 80 Strand, London WC2R 0RL. The company has its primary listing on the London Stock Exchange and is also listed on the New York Stock Exchange. These consolidated financial statements were approved for issue by the Board of Directors on 15 March 2023. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-697": {
"value": "Pearson plc (\u2018the company\u2019), its subsidiaries and associates (together \u2018the Group\u2019) are international businesses covering educational courseware, assessments and services. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-1": {
"value": "Pearson plc",
"dimensions": {
"concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-2": {
"value": " public limited compan",
"dimensions": {
"concept": "ifrs-full:LegalFormOfEntity",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-3": {
"value": " England and Wales",
"dimensions": {
"concept": "ifrs-full:CountryOfIncorporation",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-4": {
"value": "United Kingdom",
"dimensions": {
"concept": "ifrs-full:DomicileOfEntity",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-5": {
"value": "80 Strand, London WC2R 0RL",
"dimensions": {
"concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-699": {
"value": "1a. Accounting policies The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. Basis of preparation These consolidated financial statements, and the company financial statements, have been prepared on the going concern basis (see note 1c) and in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority and in accordance with UK-adopted International Accounting Standards and with the requirements of the Companies Act 2006. On 31 December 2020, IFRS as adopted by the European Union at that date was brought into UK law and became UK-adopted International Accounting Standards (IASs), with future changes being subject to endorsement by the UK Endorsement Board. The Group and company transitioned to UK-adopted IASs on 1 January 2021. This change constituted a change in accounting framework. However, there was no impact on recognition, measurement or disclosure as a result of the change in framework. The consolidated and company financial statements have also been prepared in accordance with IFRSs as issued by the International Accounting Standards Board (IASB) as they apply to annual reporting periods beginning on 1 January 2022. In respect of accounting standards applicable to the Group, there is no difference between UK-adopted IASs and IFRSs as issued by the IASB as they apply to annual reporting periods commencing on 1 January 2022. These consolidated financial statements, and the company financial statements, have been prepared under the historical cost convention as modified by the revaluation of financial assets and liabilities (including derivative financial instruments) at fair value. These accounting policies have been consistently applied to all years presented, unless otherwise stated. 1. Interpretations and amendments to published standards effective 2022 \u2013 No new standards were adopted in 2022. A number of other new pronouncements are effective from 1 January 2022 but they do not have a material impact on the consolidated financial statements, or the company financial statements. Additional disclosure has been given where relevant. 2. Standards, interpretations and amendments to published standards that are not yet effective \u2013 The following new accounting standards and amendments to new accounting standards have been issued but are not yet effective and unless otherwise indicated, have been endorsed by the UK Endorsement Board: \u2014 IFRS 17 \u2018Insurance contracts\u2019; \u2014 Amendments to IAS 1 and IFRS Practice Statement 2 \u2018Disclosure of accounting policies\u2019; \u2014 Amendments to IAS 1 \u2018Classification of liabilities as current or non-current\u2019 (not yet endorsed); \u2014 Amendments to IAS 1 \u2018Non-current liabilities with covenants\u2019 (not yet endorsed); \u2014 Amendments to IAS 8 \u2018Definition of accounting estimates\u2019; \u2014 Amendments to IAS 12 \u2018Deferred tax related to assets and liabilities arising from a single transaction\u2019; and \u2014 Amendments to IFRS 16 \u2019Lease liability in a sale and leaseback\u2019 (not yet endorsed). The Group is currently assessing the impact of the above changes, but they are not expected to have a material impact. The Group does not plan to early adopt any of the above new accounting standards or amendments. The Group has not adopted any other standard, amendment or interpretation that has been issued but is not yet effective. 3. Critical accounting assumptions and judgements \u2013 The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting assumptions and estimates. It also requires management to exercise its judgement in the process of applying the Group\u2019s accounting policies. All assumptions and estimates constitute management\u2019s best judgement at the date of the financial statements, however, in the future, actual experience may deviate from these estimates and assumptions. The areas requiring a higher degree of judgement or complexity, or areas where assumptions and estimates have a significant risk of resulting in material adjustments to the carrying value of assets and liabilities within the consolidated financial statements are: \u2014 Intangible assets: goodwill and acquired intangible assets \u2014 Taxation \u2014 Revenue: provisions for returns \u2014 Employee benefits: pensions \u2014 Property, plant and equipment: right-of-use assets \u2014 Classification as discontinued operations The key judgements and key areas of estimation are set out below, as well as in the relevant accounting policies and in the notes to the accounts where appropriate. The Group has assessed the impact of the uncertainty presented by the volatile macro-economic and geo-political environment on the financial statements, specifically considering the impact on key judgements and significant estimates along with other areas of increased risk as follows: \u2014 Financial instruments and hedge accounting; and \u2014 Translation methodologies. No material accounting impacts relating to the areas assessed above were recognised in the year. The Group will continue to monitor these areas of increased judgement, estimation and risk. The Group no longer considers the COVID-19 pandemic to be an area of significant uncertainty and is no longer specifically assessing the impact of the COVID-19 pandemic on areas of judgement, estimation and risk. KJ Key judgements \u2014 The application of tax legislation in relation to provisions for uncertain tax positions. See notes 7 and 34. \u2014 The allocation of goodwill to the cash-generating units and groups of cash-generating units. See note 11. \u2014 Whether the Group will be eligible to receive the surplus associated with the UK Group Pension Plan in recognising a pension asset. See note 25. \u2014 The results and cash flows of businesses disposed do not meet the criteria to be classified and presented as discontinued operations. See note 31. KE Key areas of estimation \u2014 The recoverability of goodwill balances. Key assumptions used in goodwill impairment testing are discount rates, perpetuity growth rates, forecast sales growth rates and forecast operating profits. See note 11. \u2014 The valuation of acquired intangible assets recognised on the acquisition of a business. See notes 11 and 30. \u2014 The level of provisions required in relation to uncertain tax positions is complex and each matter is separately assessed. The estimation of future settlement amounts is based on a number of factors including the status of the unresolved matter, clarity of legislation, range of possible outcomes and the statute of limitations. See notes 7 and 34. \u2014 The level of provisions required for anticipated returns is estimated based on historical experience, customer buying patterns and retailer behaviours including stock levels. See note 3. \u2014 The determination of the pension cost and defined benefit obligation of the Group\u2019s defined benefit pension schemes depends on the selection of certain assumptions, which include the discount rate, inflation rate, salary growth and longevity. See note 25. \u2014 The recoverability of right-of-use assets and in particular assumptions related to the ability to sublease vacant leased assets in the future. See note 10. Consolidation 1. Business combinations \u2013 The acquisition method of accounting is used to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the equity interest issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred in the operating expenses line of the income statement. Identifiable assets acquired and identifiable liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The determination of fair values often requires significant judgements and the use of estimates, and, for material acquisitions, the fair value of the acquired intangible assets is determined by an independent valuer. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill (note 30). See the \u2018Intangible assets\u2019 policy for the accounting policy on goodwill. If this is less than the fair value of the net assets of the subsidiary acquired, in the case of a bargain purchase, the difference is recognised directly in the income statement. On an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in the acquiree either at fair value or at the non-controlling interest\u2019s proportionate share of the acquiree\u2019s net assets. IFRS 3 \u2018Business Combinations\u2019 has not been applied retrospectively to business combinations before the date of transition to IFRS. Management exercises judgement in determining the classification of its investments in its businesses, in line with the following: 2. Subsidiaries \u2013 Subsidiaries are entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. 3. Transactions with non-controlling interests \u2013 Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions, that is, as transactions with the owners in their capacity as owners. Any surplus or deficit arising from disposals to a non-controlling interest is recorded in equity. For purchases from a non-controlling interest, the difference between consideration paid and the relevant share acquired of the carrying value of the subsidiary is recorded in equity. 4. Joint ventures and associates \u2013 Joint ventures are entities in which the Group holds an interest on a long-term basis and has rights to the net assets through contractually agreed sharing of control. Associates are entities over which the Group has significant influence but not the power to control the financial and operating policies, generally accompanying a shareholding of between 20% and 50% of the voting rights. Ownership percentage is likely to be t he key indicator of investment classification; however, other factors, such as Board representation, may also affect the accounting classification. Judgement is required to assess all of the qualitative and quantitative factors which may indicate that the Group does, or does not, have significant influence over an investment. Investments in joint ventures and associates are accounted for by the equity method and are initially recognised at the fair value of consideration transferred. 1a. Accounting policies continued Consolidation continued The Group\u2019s share of its joint ventures\u2019 and associates\u2019 post- acquisition profits or losses is recognised in the income statement and its share of post-acquisition movements in reserves is recognised in reserves. The Group\u2019s share of its joint ventures\u2019 and associates\u2019 results is recognised as a component of operating profit as these operations form part of the core publishing business of the Group and are an integral part of existing wholly-owned businesses. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the Group\u2019s share of losses in a joint venture or associate equals or exceeds its interest in the joint venture or associate, the Group does not recognise further losses unless the Group has incurred obligations or made payments on behalf of the joint venture or associate. Unrealised gains and losses on transactions between the Group and its joint ventures and associates are eliminated to the extent of the Group\u2019s interest in these entities. 5. Contribution of a subsidiary to an associate or joint venture \u2013 The gain or loss resulting from the contribution or sale of a subsidiary to an associate or a joint venture is recognised in full. Where such transactions do not involve cash consideration, significant judgements and estimates are used in determining the fair values of the consideration received. Foreign currency translation 1. Functional and presentation currency \u2013 Items included in the financial statements of each of the Group\u2019s entities are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The consolidated financial statements are presented in sterling, which is the company\u2019s functional and presentation currency. 2. Transactions and balances \u2013 Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement, except when deferred in equity as qualifying net investment hedges. 3. Group companies \u2013 The results and financial position of all Group companies that have a functional currency different from the presentation currency are translated into the presentation currency as follows: \u2014 Assets and liabilities are translated at the closing rate at the date of the balance sheet \u2014 Income and expenses are translated at average exchange rates \u2014 All resulting exchange differences are recognised as a separate component of equity. On consolidation, exchange differences arising from the translation of the net investment in foreign entities, and of borrowings and other currency instruments designated as hedges of such investments, are taken to shareholders\u2019 equity. The Group treats specific inter- company loan balances, which are not intended to be repaid in the foreseeable future, as part of its net investment. When a foreign operation is sold, such exchange differences are recognised in the income statement as part of the gain or loss on sale. The principal overseas currency for the Group is the US dollar. The average rate for the year against sterling was $1.24 (2021: $1.38; 2020: $1.28) and the year-end rate was $1.21 (2021: 1.35; 2020: $1.37). Property, plant and equipment Property, plant and equipment are stated at historical cost less depreciation. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for intended use. Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost less their residual values over their estimated useful lives as follows: Buildings (freehold): 20\u201350 years Buildings (leasehold): over the period of the lease Plant and equipment: 3\u201310 years The assets\u2019 residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. The carrying value of an asset is written down to its recoverable amount if the carrying value of the asset is greater than its estimated recoverable amount. Investment property In 2022, the Group classified certain assets as investment property. Properties that are no longer occupied by the Group and which are held for operating lease rental are classified as investment property. Investment property assets are carried at cost less accumulated depreciation and any recognised impairment in value. The depreciation policies for investment property are consistent with those described for property, plant and equipment Intangible assets 1. Goodwill \u2013 For the acquisition of subsidiaries made on or after 1 January 2010, goodwill represents the excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired. For the acquisition of subsidiaries made from the date of transition to IFRS to 31 December 2009, goodwill represents the excess of the cost of an acquisition over the fair value of the Group\u2019s share of the net identifiable assets acquired. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on acquisition of associates and joint ventures represents the excess of the cost of an acquisition over the fair value of the Group\u2019s share of the net identifiable assets acquired. Goodwill on acquisitions of associates and joint ventures is included in investments in associates and joint ventures . 5. Product development assets \u2013 Product development assets represent direct costs incurred in the development of educational programmes and titles prior to their publication. These costs are recognised as current intangible assets where the title will generate probable future economic benefits and costs can be measured reliably. Product development assets relating to content are amortised upon publication of the title over estimated economic lives of seven years or less, being an estimate of the expected operating lifecycle of the title, with a higher proportion of the amortisation taken in the earlier years. Product development assets relating to product platforms are amortised over 10 years or less, being an estimate of the expected useful life. The assessment of the useful economic life and the recoverability of product development assets involves judgement and is based on historical trends and management estimation of future potential sales. Product development assets are assessed for impairment triggers on an annual basis or when triggering events occur. The carrying amount of product development assets is set out in note 20. The investment in product development assets has been disclosed as part of net cash generated from operating activities in the cash flow statement (see note 33). Other financial assets Other financial assets are non-derivative financial assets classified and measured at estimated fair value. Marketable securities and cash deposits with maturities of greater than three months are classified and subsequently measured at fair value through profit and loss (FVTPL). They are remeasured at each balance sheet date by using market data and the use of established valuation techniques. Any movement in the fair value is immediately recognised in finance income or finance costs in the income statement. Investments in the equity instruments of other entities are classified and subsequently measured at fair value through other comprehensive income (FVOCI). Changes in fair value are recorded in equity in the fair value reserve via other comprehensive income. On subsequent disposal of the asset, the net fair value gains or losses are reclassified from the fair value reserve to retained earnings. Any dividends received from equity investments classified as FVOCI are recognised in the income statement unless they represent a return of capital. Investments in funds which have a limited life are classified and subsequently measured at fair value through profit and loss (FVTPL). Changes in fair value are included within net finance costs within the income statement and excluded from adjusted earnings. Inventories Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted average method or an approximation thereof, such as the first in first out (FIFO) method. The cost of finished goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs necessary to make the sale. Provisions are made for slow-moving and obsolete stock. Goodwill is tested at least annually for impairment and carried at cost less accumulated impairment losses. An impairment loss is recognised to the extent that the carrying value of goodwill exceeds the recoverable amount. The recoverable amount is the higher of fair value less costs of disposal and value in use. These calculations require the use of estimates in respect of forecast cash flows and discount rates and significant management judgement in respect of cash-generating unit (CGU) and cost allocation; impairment is a key source of estimation uncertainty and has a significant risk of resulting in a material adjustment to the carrying amount of relevant assets within the next financial year. A summary of these assets by CGU and a description of the key assumptions and sensitivities is included in note 11. Goodwill is allocated to aggregated CGUs for the purpose of impairment testing. The allocation is made to those aggregated CGUs that are expected to benefit from the business combination in which the goodwill arose. Where there are changes to CGUs, goodwill is reallocated to the new CGUs and aggregation of CGUs using a relative value method. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. 2. Acquired software \u2013 Software separately acquired for internal use is capitalised at cost. Software acquired in material business combinations is capitalised at its fair value as determined by an independent valuer. The assets are assessed for impairment triggers on an annual basis or when triggering events occur. Acquired software is amortised on a straight-line basis over its estimated useful life of between three and eight years. 3. Internally developed software \u2013 Internal and external costs incurred during the preliminary stage of developing computer software for internal use are expensed as incurred. Internal and external costs incurred to develop computer software for internal use during the application development stage are capitalised if the Group expects economic benefits from the development. Capitalisation in the application development stage begins once the Group can reliably measure the expenditure attributable to the software development and has demonstrated its intention to complete and use the software. Internally developed software is amortised on a straight-line basis over its estimated useful life of between three and ten years. The assets are assessed for impairment triggers on an annual basis or when triggering events occur. 4. Acquired intangible assets \u2013 Acquired intangible assets include customer lists, contracts and relationships, trademarks and brands, publishing rights, content, technology and software rights. These assets are capitalised on acquisition at cost and included in intangible assets. Intangible assets acquired in material business combinations are capitalised at their fair value as determined by an independent valuer. The valuation of these assets are a key source of estimation uncertainty. Intangible assets are amortised over their estimated useful lives of between two and 20 years, using an amortisation method that reflects the pattern of their consumption. The assets are assessed for impairment triggers on an annual basis or when triggering events occur. 1a. Accounting policies continued Royalty advances Advances of royalties to authors are included within trade and other receivables when the advance is paid less any provision required to adjust the advance to its net realisable value. The realisable value of royalty advances relies on a degree of management estimation in determining the profitability of individual author contracts. If the estimated realisable value of author contracts is overstated, this will have an adverse effect on operating profits as these excess amounts will be written off. The recoverability of royalty advances is based upon an annual detailed management review of the age of the advance, the future sales projections for new authors and prior sales history of repeat authors. The royalty advance is expensed at the contracted or effective royalty rate as the related revenues are earned. Royalty advances which will be consumed within one year are held in current assets. Royalty advances which will be consumed after one year are held in non-current assets. Cash and cash equivalents Cash and cash equivalents in the cash flow statement include cash in hand, deposits held on call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are included in borrowings in current liabilities in the balance sheet. Short-term deposits and marketable securities with maturities of greater than three months do not qualify as cash and cash equivalents and are reported as financial assets. Movements on these financial assets are classified as cash flows from financing activities in the cash flow statement where these amounts are used to offset the borrowings of the Group or as cash flows from investing activities where these amounts are held to generate an investment return. Share capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Where any Group company purchases the company\u2019s equity share capital (treasury shares), the consideration paid, including any directly attributable incremental costs, net of income taxes, is deducted from equity attributable to the company\u2019s equity holders until the shares are cancelled, reissued or disposed of. Where such shares are subsequently sold or reissued, any consideration received, net of any directly attributable transaction costs and the related income tax effects, is included in equity attributable to the company\u2019s equity holders. Ordinary shares purchased under a buyback programme are cancelled and the nominal value of the shares is transferred to a capital redemption reserve. Borrowings Borrowings are recognised initially at fair value, which is proceeds received net of transaction costs incurred. Borrowings are subsequently stated at amortised cost with any difference between the proceeds (net of transaction costs) and the redemption value being recognised in the income statement over the period of the borrowings using the effective interest method. Accrued interest is included as part of borrowings. Where a debt instrument is in a fair value hedging relationship, an adjustment is made to its carrying value in the income statement to reflect the hedged risk. Where a debt instrument is in a net investment hedge relationship, gains and losses on the effective portion of the hedge are recognised in other comprehensive income. Derivative financial instruments Derivatives are recognised at fair value and remeasured at each balance sheet date. The fair value of derivatives is determined by using market data and the use of established estimation techniques such as discounted cash flow and option valuation models. For derivatives in a hedge relationship, the currency basis spread is excluded from the designation as a hedging instrument. Changes in the fair value of derivatives are recognised immediately in finance income or costs. However, derivatives relating to borrowings and certain foreign exchange contracts are designated as part of a hedging transaction. The accounting treatment is summarised as follows: Typical reason for designation Reporting of gains and losses on effective portion of the hedge Reporting of gains and losses on disposal Net investment hedge The derivative creates a foreign currency liability which is used to hedge changes in the value of a subsidiary which transacts in that currency. Recognised in other comprehensive income. On the disposal of foreign operations or subsidiaries, the accumulated value of gains and losses reported in other comprehensive income is transferred to the income statement. Fair value hedges The derivative transforms the interest profile on debt from fixed rate to floating rate. Changes in the value of the debt as a result of changes in interest rates and foreign exchange rates are offset by equal and opposite changes in the value of the derivative. When the Group\u2019s debt is swapped to floating rates, the contracts used are designated as fair value hedges. Gains and losses on the derivative are reported in finance income or finance costs. However, an equal and opposite change is made to the carrying value of the debt (a \u2018fair value adjustment\u2019) with the benefit/ cost reported in finance income or finance costs. The net result should be a zero charge on a perfectly effective hedge. If the debt and derivative are disposed of, the value of the derivative and the debt (including the fair value adjustment) are reset to zero. Any resultant gain or loss is recognised in finance income or finance costs. Non-hedge accounted contracts These are not designated as hedging instruments. Typically, these are short-term contracts to convert debt back to fixed rates or foreign exchange contracts where a natural offset exists. Recognised in the income statement. No hedge accounting applies. Taxation Current tax is recognised at the amounts expected to be paid or recovered under the tax rates and laws that have been enacted or substantively enacted at the balance sheet date. Deferred income tax is provided, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred income tax liability is settled. Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. Deferred income tax is provided in respect of the undistributed earnings of subsidiaries, associates and joint ventures other than where it is intended that those undistributed earnings will not be remitted in the foreseeable future. Current and deferred tax are recognised in the income statement, except when the tax relates to items charged or credited directly to equity or other comprehensive income, in which case the tax is also recognised in equity or other comprehensive income. The Group is subject to income taxes in numerous jurisdictions. Significant judgement is required in determining the estimates in relation to the worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognises tax provisions when it is considered probable that there will be a future outflow of funds to a tax authority. The provisions are based on management\u2019s best judgement of the application of tax legislation and best estimates of future settlement amounts (see note 7). Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. Deferred tax assets and liabilities require management judgement and estimation in determining the amounts to be recognised. In particular, when assessing the extent to which deferred tax assets should be recognised, significant judgement is used when considering the timing of the recognition and estimation is used to determine the level of future taxable income together with any future tax planning strategies (see note 13). Employee benefits 1. Pensions \u2013 The retirement benefit asset and obligation recognised in the balance sheet represent the net of the present value of the defined benefit obligation and the fair value of plan assets at the balance sheet date. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting estimated future cash flows using yields on high-quality corporate bonds which have terms to maturity approximating the terms of the related liability. When the calculation results in a potential asset, the recognition of that asset is limited to the asset ceiling \u2013 that is the present value of any economic benefits available in the form of refunds from the plan or a reduction in future contributions. Management uses judgement to determine the level of refunds available from the plan in recognising an asset. The determination of the pension cost and defined benefit obligation of the Group\u2019s defined benefit pension schemes depends on the selection of certain assumptions, which include the discount rate, inflation rate, salary growth and longevity (see note 25). Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise. The service cost, representing benefits accruing over the year, is included in the income statement as an operating cost. Net interest is calculated by applying the discount rate to the net defined benefit obligation and is presented as finance costs or finance income. Obligations for contributions to defined contribution pension plans are recognised as an operating expense in the income statement as incurred. 2. Other post-retirement obligations \u2013 The expected costs of post-retirement medical and life assurance benefits are accrued over the period of employment, using a similar accounting methodology as for defined benefit pension obligations. The liabilities and costs relating to significant other post-retirement obligations are assessed annually by independent qualified actuaries. 3. Share-based payments \u2013 The fair value of options or shares granted under the Group\u2019s share and option plans is recognised as an employee expense after taking into account the Group\u2019s best estimate of the number of awards expected to vest. Fair value is measured at the date of grant and is spread over the vesting period of the option or share. The fair value of the options granted is measured using an option model that is most appropriate to the award. The fair value of shares awarded is measured using the share price at the date of grant unless another method is more appropriate. Any proceeds received are credited to share capital and share premium when the options are exercised. Provisions Provisions are recognised if the Group has a present legal or constructive obligation as a result of past events; it is more likely than not that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are discounted to present value where the effect is material. Revenue recognition The Group\u2019s revenue streams are courseware, assessments and services. Courseware includes curriculum materials provided in book form and/or via access to digital content. Assessments includes test development, processing and scoring services provided to governments, educational institutions, corporations and professional bodies. Services includes the operation of schools, colleges and universities, as well as the provision of online learning services in partnership with universities and other academic institutions. Revenue is recognised in order to depict the transfer of control of promised goods and services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods and services. This process begins with the identification of our contract with a customer, which is generally through a master services agreement, customer purchase order, or a combination thereof. Within each contract, judgement is applied to determine the extent to which activities within the contract represent distinct performance obligations to be delivered and the total amount of transaction price to which we expect to be entitled. 1a. Accounting policies continued The transaction price determined is net of sales taxes, rebates and discounts, and after eliminating sales within the Group. Where a contract contains multiple performance obligations such as the provision of supplementary materials or online access with textbooks, revenue is allocated on the basis of relative standalone selling prices. Where a contract contains variable consideration, significant estimation is required to determine the amount to which the Group is expected to be entitled. Revenue is recognised on contracts with customers when or as performance obligations are satisfied, which is the period or the point in time where control of goods or services transfers to the customer. Judgement is applied to determine first whether control passes over time and if not, then the point in time at which control passes. Where revenue is recognised over time, judgement is used to determine the method which best depicts the transfer of control. Where an input method is used, significant estimation is required to determine the progress towards delivering the performance obligation. Revenue from the sale of books is recognised net of a provision for anticipated returns. This provision is based primarily on historical return rates, customer buying patterns and retailer behaviours including stock levels (see note 24). If these estimates do not reflect actual returns in future periods then revenues could be understated or overstated for a particular period. When the provision for returns is remeasured at each reporting date to reflect changes in estimates, a corresponding adjustment is also recorded to revenue. The Group may enter into contracts with another party in addition to our customer. In making the determination as to whether revenue should be recognised on a gross or net basis, the contract with the customer is analysed to understand which party controls the relevant good or service prior to transferring to the customer. This judgement is informed by facts and circumstances of the contract in determining whether the Group has promised to provide the specified good or service or whether the Group is arranging for the transfer of the specified good or service, including which party is responsible for fulfilment, has discretion to set the price to the customer and is responsible for inventory risk. On certain contracts, where the Group acts as an agent, only commissions and fees receivable for services rendered are recognised as revenue. Any third-party costs incurred on behalf of the principal that are rechargeable under the contractual arrangement are not included in revenue. Income from recharges of freight and other activities which are incidental to the normal revenue-generating activities is included in other income. Additional details on the Group\u2019s revenue streams are also included in note 3. Leases The Group as a lessee The Group assesses whether a contract is or contains a lease at the inception of the contract. A contract is, or contains a lease, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Group recognises a right-of-use asset and a lease liability at the lease commencement date with respect to all lease arrangements except for short-term leases (leases with a lease term of 12 months or less) and leases of low-value assets. For these leases, the lease payments are recognised as an operating expense on a straight-line basis over the term of the lease. The right-of-use asset is initially measured at cost, comprising the initial amount of the lease liability plus any initial direct costs incurred and an estimate of costs to restore the underlying asset, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the asset or the end of the lease term. The Group applies IAS 36 to determine whether a right-of-use asset is impaired. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the incremental borrowing rate. The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or a rate or a change in the Group\u2019s assessment of whether it will exercise an extension or termination option. When the lease liability is remeasured, a corresponding adjustment is made to the right-of-use asset. Management uses judgement to determine the lease term where extension and termination options are available within the lease. The Group as a lessor When the Group is an intermediate lessor, the head lease and sublease are accounted for as two separate contracts. The head lease is accounted for as per the lessee policy above. The sublease is classified as a finance lease or operating lease by reference to the right-of-use asset arising from the head lease. Where the lease transfers substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease; all other leases are classified as operating leases. Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Amounts due from lessees under finance subleases are recognised as receivables at the amount of the Group\u2019s net investment in the leases discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the discount rate used in the head lease. Dividends Final dividends are recorded in the Group\u2019s financial statements in the period in which they are approved by the company\u2019s shareholders. Interim dividends are recorded when paid. Discontinued operations A discontinued operation is a component of the Group\u2019s business that represents a separate major line of business or geographical area of operations that has been disposed of or meets the criteria to be classified as held for sale. When applicable, discontinued operations are presented in the income statement as a separate line and are shown net of tax. Assets and liabilities held for sale Assets and liabilities are classified as held for sale and stated at the lower of carrying amount and fair value less costs to sell if it is highly probable that the carrying amount will be recovered principally through a sale transaction rather than through continuing use. No depreciation is charged in respect of non-current assets classified as held for sale. Amounts relating to non-current assets and liabilities held for sale are classified as discontinued operations in the income statement where appropriate. Trade receivables Trade receivables are stated at fair value after provision for bad and doubtful debts. Provisions for bad and doubtful debts are based on the expected credit loss model. The \u2018simplified approach\u2019 is used with the expected loss allowance measured at an amount equal to the lifetime expected credit losses. A provision for anticipated future sales returns is included within trade and other liabilities (also see Revenue recognition policy). 1b. Comparative period revisions In 2022, the Group identified an error related to the classification of certain investments in unlisted securities. Investments that should have been accounted for at fair value through profit and loss were previously accounted for at fair value through other comprehensive income. The investments are held at fair value within other financial assets on the balance sheet. Having assessed both the quantitative and qualitative factors, the Group has determined that the error did not have a material impact on its previously issued consolidated financial statements. However, the comparative financial statement line items have been corrected to reflect the change in accounting treatment. The fair value movements are now recorded within finance income, rather than within other comprehensive income. All impacted primary statements and related notes have been restated. For the year ended 31 December 2021, the revision has resulted in an increase in finance income and a corresponding increase in profit before tax of \u00a320m, a reduction in the income tax benefit of \u00a32m, an increase in profit for the year and profit for the year attributable to equity holders of the company of \u00a318m, a decrease in the fair value gain on other financial assets through other comprehensive income of \u00a320m with an increase in the attributable tax of \u00a32m, resulting in a decrease in other comprehensive income for the year of \u00a318m, and no change in total comprehensive income for the year, all as compared to amounts previously reported. For the year ended 31 December 2020, the revision has resulted in an increase in finance income and a corresponding increase in profit before tax of \u00a326m, an increase in income tax expense of \u00a36m, an increase in profit for the year and profit for the year attributable to equity holders of the company of \u00a320m, a decrease in the fair value gain on other financial assets through other comprehensive income of \u00a326m with an increase in the attributable tax of \u00a36m, resulting in a decrease in other comprehensive income for the year of \u00a320m, and no change in total comprehensive income for the year, all as compared to amounts previously reported. The impact on both basic and diluted earnings per share attributable to equity holders of the company is an increase of 2.4p for 2021 and 2.7p for 2020. The restatement had no balance sheet impact except within equity. Opening retained earnings as at 1 January 2020 have increased by \u00a331m and closing retained earnings as at 31 December 2020 have increased by \u00a357m and an equivalent decrease has been recorded to the opening and closing fair value reserve. Closing retained earnings at 31 December 2021 has increased by \u00a337m and an equivalent decrease has been recorded to the closing fair value reserve. The restatement has no impact on the carrying amount of other financial assets in the balance sheet and has no impact on reported net assets, cash flows or total equity. Accordingly, an additional balance sheet as at 1 January 2020 has not been presented. The fair value movements now presented in the income statements are excluded from adjusted measures as described in note 8, as a result there is no impact to any adjusted measures. 1c. Going concern In assessing the Group\u2019s ability to continue as a going concern for the period to 30 June 2024, the Board reviewed management\u2019s four-year plan, which was used as the base case. The review included available liquidity throughout the period and headroom against the Group\u2019s two main covenants, which require net debt to EBITDA to be a maximum of four times and interest cover to be at least three times. At 31 December 2022, the Group had available liquidity of \u00a31.4bn, comprising central cash balances and its undrawn $1.19bn Revolving Credit Facility (RCF). In February 2023, the maximum RCF facility size was reduced to $1bn and the model used reflects this change. Significant liquidity and covenant headroom was observed throughout the assessment period in this base model. A severe but plausible scenario was analysed, where the Group is impacted by all principal risks in both 2023 and 2024, adjusted for probability weighting as well as other significant risks. For this and other downside scenarios tested, the acquisition of PDRI is assumed to be completed and a further capital allocation outflow of \u00a3350m is modelled. In the severe but plausible scenario, adjusted operating profit is reduced by around 30%, with a similar impact on operating cashflow. Significant liquidity and covenant headroom was observed throughout the assessment period even before any mitigation actions which management would take if these downside risks were to crystalise. A reverse stress test was performed to identify the reduction in profit required to cease to be a going concern at or before 30 June 2024. This was achieved in the model through a covenant breach in June 2024 triggering repayment of the Group\u2019s debts. The model showed that operating losses were required, with profits reduced by around \u00a3750m per year in both 2023 and 2024. This significantly exceeded the severe but plausible downside scenario. The Directors consider this reverse stress test scenario to be implausible. The Directors have confirmed that there are no material uncertainties that cast doubt on the Group\u2019s going concern status and that they have a reasonable expectation that the Group has adequate resources to continue in operational existence beyond 30 June 2024. The consolidated financial statements have therefore been prepared on a going concern basis. 1d. Climate change The Group has assessed the impacts of climate change on the Group\u2019s financial statements , including our commitment to achieving net zero by 2030, and the actions the Group intends to take to achieve those targets. The assessment did not identify any material impact on the Group\u2019s significant judgements or estimates at 31 December 2022, or the assessment of going concern for the period to June 2024 and the Group\u2019s viability over the next four years. Specifically, we have considered the following areas: \u2014 The physical and transition risks associated with climate change; and \u2014 The actions the Group is taking to meet its carbon reduction and net zero targets. As a result, the Group has assessed the impacts of climate change on the financial statements, and in particular, on the following areas: \u2014 The impact on the Group\u2019s future cash flows, and the resulting impact that such adjustments to our future cash flows would have on the outcome of the annual impairment testing of our goodwill balances (see note 11 for further details), the recognition of deferred tax assets and our assessment of going concern; \u2014 The carrying value of the Group\u2019s assets, in particular the recoverable amounts of inventories, product development assets, intangible assets and property, plant and equipment; and \u2014 Any changes to our estimates of the useful economic lives of product development assets, intangible assets and property, plant and equipment. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSummaryOfSignificantAccountingPoliciesExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-701": {
"value": "Basis of preparation These consolidated financial statements, and the company financial statements, have been prepared on the going concern basis (see note 1c) and in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority and in accordance with UK-adopted International Accounting Standards and with the requirements of the Companies Act 2006. On 31 December 2020, IFRS as adopted by the European Union at that date was brought into UK law and became UK-adopted International Accounting Standards (IASs), with future changes being subject to endorsement by the UK Endorsement Board. The Group and company transitioned to UK-adopted IASs on 1 January 2021. This change constituted a change in accounting framework. However, there was no impact on recognition, measurement or disclosure as a result of the change in framework. The consolidated and company financial statements have also been prepared in accordance with IFRSs as issued by the International Accounting Standards Board (IASB) as they apply to annual reporting periods beginning on 1 January 2022. In respect of accounting standards applicable to the Group, there is no difference between UK-adopted IASs and IFRSs as issued by the IASB as they apply to annual reporting periods commencing on 1 January 2022. These consolidated financial statements, and the company financial statements, have been prepared under the historical cost convention as modified by the revaluation of financial assets and liabilities (including derivative financial instruments) at fair value. These accounting policies have been consistently applied to all years presented, unless otherwise stated. 1. Interpretations and amendments to published standards effective 2022 \u2013 No new standards were adopted in 2022. A number of other new pronouncements are effective from 1 January 2022 but they do not have a material impact on the consolidated financial statements, or the company financial statements. Additional disclosure has been given where relevant. 2. Standards, interpretations and amendments to published standards that are not yet effective \u2013 The following new accounting standards and amendments to new accounting standards have been issued but are not yet effective and unless otherwise indicated, have been endorsed by the UK Endorsement Board: \u2014 IFRS 17 \u2018Insurance contracts\u2019; \u2014 Amendments to IAS 1 and IFRS Practice Statement 2 \u2018Disclosure of accounting policies\u2019; \u2014 Amendments to IAS 1 \u2018Classification of liabilities as current or non-current\u2019 (not yet endorsed); \u2014 Amendments to IAS 1 \u2018Non-current liabilities with covenants\u2019 (not yet endorsed); \u2014 Amendments to IAS 8 \u2018Definition of accounting estimates\u2019; \u2014 Amendments to IAS 12 \u2018Deferred tax related to assets and liabilities arising from a single transaction\u2019; and \u2014 Amendments to IFRS 16 \u2019Lease liability in a sale and leaseback\u2019 (not yet endorsed). The Group is currently assessing the impact of the above changes, but they are not expected to have a material impact. The Group does not plan to early adopt any of the above new accounting standards or amendments. The Group has not adopted any other standard, amendment or interpretation that has been issued but is not yet effective. 3. Critical accounting assumptions and judgements \u2013 The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting assumptions and estimates. It also requires management to exercise its judgement in the process of applying the Group\u2019s accounting policies. All assumptions and estimates constitute management\u2019s best judgement at the date of the financial statements, however, in the future, actual experience may deviate from these estimates and assumptions. The areas requiring a higher degree of judgement or complexity, or areas where assumptions and estimates have a significant risk of resulting in material adjustments to the carrying value of assets and liabilities within the consolidated financial statements are: \u2014 Intangible assets: goodwill and acquired intangible assets \u2014 Taxation \u2014 Revenue: provisions for returns \u2014 Employee benefits: pensions \u2014 Property, plant and equipment: right-of-use assets \u2014 Classification as discontinued operations The key judgements and key areas of estimation are set out below, as well as in the relevant accounting policies and in the notes to the accounts where appropriate. The Group has assessed the impact of the uncertainty presented by the volatile macro-economic and geo-political environment on the financial statements, specifically considering the impact on key judgements and significant estimates along with other areas of increased risk as follows: \u2014 Financial instruments and hedge accounting; and \u2014 Translation methodologies. No material accounting impacts relating to the areas assessed above were recognised in the year. The Group will continue to monitor these areas of increased judgement, estimation and risk. The Group no longer considers the COVID-19 pandemic to be an area of significant uncertainty and is no longer specifically assessing the impact of the COVID-19 pandemic on areas of judgement, estimation and risk. KJ Key judgements \u2014 The application of tax legislation in relation to provisions for uncertain tax positions. See notes 7 and 34. \u2014 The allocation of goodwill to the cash-generating units and groups of cash-generating units. See note 11. \u2014 Whether the Group will be eligible to receive the surplus associated with the UK Group Pension Plan in recognising a pension asset. See note 25. \u2014 The results and cash flows of businesses disposed do not meet the criteria to be classified and presented as discontinued operations. See note 31. KE Key areas of estimation \u2014 The recoverability of goodwill balances. Key assumptions used in goodwill impairment testing are discount rates, perpetuity growth rates, forecast sales growth rates and forecast operating profits. See note 11. \u2014 The valuation of acquired intangible assets recognised on the acquisition of a business. See notes 11 and 30. \u2014 The level of provisions required in relation to uncertain tax positions is complex and each matter is separately assessed. The estimation of future settlement amounts is based on a number of factors including the status of the unresolved matter, clarity of legislation, range of possible outcomes and the statute of limitations. See notes 7 and 34. \u2014 The level of provisions required for anticipated returns is estimated based on historical experience, customer buying patterns and retailer behaviours including stock levels. See note 3. \u2014 The determination of the pension cost and defined benefit obligation of the Group\u2019s defined benefit pension schemes depends on the selection of certain assumptions, which include the discount rate, inflation rate, salary growth and longevity. See note 25. \u2014 The recoverability of right-of-use assets and in particular assumptions related to the ability to sublease vacant leased assets in the future. See note 10. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-760": {
"value": "1. Interpretations and amendments to published standards effective 2022 \u2013 No new standards were adopted in 2022. A number of other new pronouncements are effective from 1 January 2022 but they do not have a material impact on the consolidated financial statements, or the company financial statements. Additional disclosure has been given where relevant. 2. Standards, interpretations and amendments to published standards that are not yet effective \u2013 The following new accounting standards and amendments to new accounting standards have been issued but are not yet effective and unless otherwise indicated, have been endorsed by the UK Endorsement Board: \u2014 IFRS 17 \u2018Insurance contracts\u2019; \u2014 Amendments to IAS 1 and IFRS Practice Statement 2 \u2018Disclosure of accounting policies\u2019; \u2014 Amendments to IAS 1 \u2018Classification of liabilities as current or non-current\u2019 (not yet endorsed); \u2014 Amendments to IAS 1 \u2018Non-current liabilities with covenants\u2019 (not yet endorsed); \u2014 Amendments to IAS 8 \u2018Definition of accounting estimates\u2019; \u2014 Amendments to IAS 12 \u2018Deferred tax related to assets and liabilities arising from a single transaction\u2019; and \u2014 Amendments to IFRS 16 \u2019Lease liability in a sale and leaseback\u2019 (not yet endorsed). The Group is currently assessing the impact of the above changes, but they are not expected to have a material impact. The Group does not plan to early adopt any of the above new accounting standards or amendments. The Group has not adopted any other standard, amendment or interpretation that has been issued but is not yet effective. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-786": {
"value": "1. Interpretations and amendments to published standards effective 2022 \u2013 No new standards were adopted in 2022. A number of other new pronouncements are effective from 1 January 2022 but they do not have a material impact on the consolidated financial statements, or the company financial statements. Additional disclosure has been given where relevant. 2. Standards, interpretations and amendments to published standards that are not yet effective \u2013 The following new accounting standards and amendments to new accounting standards have been issued but are not yet effective and unless otherwise indicated, have been endorsed by the UK Endorsement Board: \u2014 IFRS 17 \u2018Insurance contracts\u2019; \u2014 Amendments to IAS 1 and IFRS Practice Statement 2 \u2018Disclosure of accounting policies\u2019; \u2014 Amendments to IAS 1 \u2018Classification of liabilities as current or non-current\u2019 (not yet endorsed); \u2014 Amendments to IAS 1 \u2018Non-current liabilities with covenants\u2019 (not yet endorsed); \u2014 Amendments to IAS 8 \u2018Definition of accounting estimates\u2019; \u2014 Amendments to IAS 12 \u2018Deferred tax related to assets and liabilities arising from a single transaction\u2019; and \u2014 Amendments to IFRS 16 \u2019Lease liability in a sale and leaseback\u2019 (not yet endorsed). The Group is currently assessing the impact of the above changes, but they are not expected to have a material impact. The Group does not plan to early adopt any of the above new accounting standards or amendments. The Group has not adopted any other standard, amendment or interpretation that has been issued but is not yet effective. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfExpectedImpactOfInitialApplicationOfNewStandardsOrInterpretations",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-761": {
"value": "3. Critical accounting assumptions and judgements \u2013 The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting assumptions and estimates. It also requires management to exercise its judgement in the process of applying the Group\u2019s accounting policies. All assumptions and estimates constitute management\u2019s best judgement at the date of the financial statements, however, in the future, actual experience may deviate from these estimates and assumptions. The areas requiring a higher degree of judgement or complexity, or areas where assumptions and estimates have a significant risk of resulting in material adjustments to the carrying value of assets and liabilities within the consolidated financial statements are: \u2014 Intangible assets: goodwill and acquired intangible assets \u2014 Taxation \u2014 Revenue: provisions for returns \u2014 Employee benefits: pensions \u2014 Property, plant and equipment: right-of-use assets \u2014 Classification as discontinued operations The key judgements and key areas of estimation are set out below, as well as in the relevant accounting policies and in the notes to the accounts where appropriate. The Group has assessed the impact of the uncertainty presented by the volatile macro-economic and geo-political environment on the financial statements, specifically considering the impact on key judgements and significant estimates along with other areas of increased risk as follows: \u2014 Financial instruments and hedge accounting; and \u2014 Translation methodologies. No material accounting impacts relating to the areas assessed above were recognised in the year. The Group will continue to monitor these areas of increased judgement, estimation and risk. The Group no longer considers the COVID-19 pandemic to be an area of significant uncertainty and is no longer specifically assessing the impact of the COVID-19 pandemic on areas of judgement, estimation and risk. KJ Key judgements \u2014 The application of tax legislation in relation to provisions for uncertain tax positions. See notes 7 and 34. \u2014 The allocation of goodwill to the cash-generating units and groups of cash-generating units. See note 11. \u2014 Whether the Group will be eligible to receive the surplus associated with the UK Group Pension Plan in recognising a pension asset. See note 25. \u2014 The results and cash flows of businesses disposed do not meet the criteria to be classified and presented as discontinued operations. See note 31. KE Key areas of estimation \u2014 The recoverability of goodwill balances. Key assumptions used in goodwill impairment testing are discount rates, perpetuity growth rates, forecast sales growth rates and forecast operating profits. See note 11. \u2014 The valuation of acquired intangible assets recognised on the acquisition of a business. See notes 11 and 30. \u2014 The level of provisions required in relation to uncertain tax positions is complex and each matter is separately assessed. The estimation of future settlement amounts is based on a number of factors including the status of the unresolved matter, clarity of legislation, range of possible outcomes and the statute of limitations. See notes 7 and 34. \u2014 The level of provisions required for anticipated returns is estimated based on historical experience, customer buying patterns and retailer behaviours including stock levels. See note 3. \u2014 The determination of the pension cost and defined benefit obligation of the Group\u2019s defined benefit pension schemes depends on the selection of certain assumptions, which include the discount rate, inflation rate, salary growth and longevity. See note 25. \u2014 The recoverability of right-of-use assets and in particular assumptions related to the ability to sublease vacant leased assets in the future. See note 10. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-702": {
"value": "Consolidation 1. Business combinations \u2013 The acquisition method of accounting is used to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the equity interest issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred in the operating expenses line of the income statement. Identifiable assets acquired and identifiable liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The determination of fair values often requires significant judgements and the use of estimates, and, for material acquisitions, the fair value of the acquired intangible assets is determined by an independent valuer. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill (note 30). See the \u2018Intangible assets\u2019 policy for the accounting policy on goodwill. If this is less than the fair value of the net assets of the subsidiary acquired, in the case of a bargain purchase, the difference is recognised directly in the income statement. On an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in the acquiree either at fair value or at the non-controlling interest\u2019s proportionate share of the acquiree\u2019s net assets. IFRS 3 \u2018Business Combinations\u2019 has not been applied retrospectively to business combinations before the date of transition to IFRS. Management exercises judgement in determining the classification of its investments in its businesses, in line with the following: 2. Subsidiaries \u2013 Subsidiaries are entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. 3. Transactions with non-controlling interests \u2013 Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions, that is, as transactions with the owners in their capacity as owners. Any surplus or deficit arising from disposals to a non-controlling interest is recorded in equity. For purchases from a non-controlling interest, the difference between consideration paid and the relevant share acquired of the carrying value of the subsidiary is recorded in equity. 4. Joint ventures and associates \u2013 Joint ventures are entities in which the Group holds an interest on a long-term basis and has rights to the net assets through contractually agreed sharing of control. Associates are entities over which the Group has significant influence but not the power to control the financial and operating policies, generally accompanying a shareholding of between 20% and 50% of the voting rights. Ownership percentage is likely to be t he key indicator of investment classification; however, other factors, such as Board representation, may also affect the accounting classification. Judgement is required to assess all of the qualitative and quantitative factors which may indicate that the Group does, or does not, have significant influence over an investment. Investments in joint ventures and associates are accounted for by the equity method and are initially recognised at the fair value of consideration transferred. Consolidation continued The Group\u2019s share of its joint ventures\u2019 and associates\u2019 post- acquisition profits or losses is recognised in the income statement and its share of post-acquisition movements in reserves is recognised in reserves. The Group\u2019s share of its joint ventures\u2019 and associates\u2019 results is recognised as a component of operating profit as these operations form part of the core publishing business of the Group and are an integral part of existing wholly-owned businesses. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the Group\u2019s share of losses in a joint venture or associate equals or exceeds its interest in the joint venture or associate, the Group does not recognise further losses unless the Group has incurred obligations or made payments on behalf of the joint venture or associate. Unrealised gains and losses on transactions between the Group and its joint ventures and associates are eliminated to the extent of the Group\u2019s interest in these entities. 5. Contribution of a subsidiary to an associate or joint venture \u2013 The gain or loss resulting from the contribution or sale of a subsidiary to an associate or a joint venture is recognised in full. Where such transactions do not involve cash consideration, significant judgements and estimates are used in determining the fair values of the consideration received. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-762": {
"value": "1. Business combinations \u2013 The acquisition method of accounting is used to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the equity interest issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred in the operating expenses line of the income statement. Identifiable assets acquired and identifiable liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The determination of fair values often requires significant judgements and the use of estimates, and, for material acquisitions, the fair value of the acquired intangible assets is determined by an independent valuer. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill (note 30). See the \u2018Intangible assets\u2019 policy for the accounting policy on goodwill. If this is less than the fair value of the net assets of the subsidiary acquired, in the case of a bargain purchase, the difference is recognised directly in the income statement. On an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in the acquiree either at fair value or at the non-controlling interest\u2019s proportionate share of the acquiree\u2019s net assets. IFRS 3 \u2018Business Combinations\u2019 has not been applied retrospectively to business combinations before the date of transition to IFRS. Management exercises judgement in determining the classification of its investments in its businesses, in line with the following: ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-763": {
"value": "2. Subsidiaries \u2013 Subsidiaries are entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-764": {
"value": "3. Transactions with non-controlling interests \u2013 Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions, that is, as transactions with the owners in their capacity as owners. Any surplus or deficit arising from disposals to a non-controlling interest is recorded in equity. For purchases from a non-controlling interest, the difference between consideration paid and the relevant share acquired of the carrying value of the subsidiary is recorded in equity. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTransactionsWithNoncontrollingInterestsExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-765": {
"value": "4. Joint ventures and associates \u2013 Joint ventures are entities in which the Group holds an interest on a long-term basis and has rights to the net assets through contractually agreed sharing of control. Associates are entities over which the Group has significant influence but not the power to control the financial and operating policies, generally accompanying a shareholding of between 20% and 50% of the voting rights. Ownership percentage is likely to be t he key indicator of investment classification; however, other factors, such as Board representation, may also affect the accounting classification. Judgement is required to assess all of the qualitative and quantitative factors which may indicate that the Group does, or does not, have significant influence over an investment. Investments in joint ventures and associates are accounted for by the equity method and are initially recognised at the fair value of consideration transferred. The Group\u2019s share of its joint ventures\u2019 and associates\u2019 post- acquisition profits or losses is recognised in the income statement and its share of post-acquisition movements in reserves is recognised in reserves. The Group\u2019s share of its joint ventures\u2019 and associates\u2019 results is recognised as a component of operating profit as these operations form part of the core publishing business of the Group and are an integral part of existing wholly-owned businesses. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the Group\u2019s share of losses in a joint venture or associate equals or exceeds its interest in the joint venture or associate, the Group does not recognise further losses unless the Group has incurred obligations or made payments on behalf of the joint venture or associate. Unrealised gains and losses on transactions between the Group and its joint ventures and associates are eliminated to the extent of the Group\u2019s interest in these entities. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociatesAndJointVenturesExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-787": {
"value": "4. Joint ventures and associates \u2013 Joint ventures are entities in which the Group holds an interest on a long-term basis and has rights to the net assets through contractually agreed sharing of control. Associates are entities over which the Group has significant influence but not the power to control the financial and operating policies, generally accompanying a shareholding of between 20% and 50% of the voting rights. Ownership percentage is likely to be t he key indicator of investment classification; however, other factors, such as Board representation, may also affect the accounting classification. Judgement is required to assess all of the qualitative and quantitative factors which may indicate that the Group does, or does not, have significant influence over an investment. Investments in joint ventures and associates are accounted for by the equity method and are initially recognised at the fair value of consideration transferred. The Group\u2019s share of its joint ventures\u2019 and associates\u2019 post- acquisition profits or losses is recognised in the income statement and its share of post-acquisition movements in reserves is recognised in reserves. The Group\u2019s share of its joint ventures\u2019 and associates\u2019 results is recognised as a component of operating profit as these operations form part of the core publishing business of the Group and are an integral part of existing wholly-owned businesses. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the Group\u2019s share of losses in a joint venture or associate equals or exceeds its interest in the joint venture or associate, the Group does not recognise further losses unless the Group has incurred obligations or made payments on behalf of the joint venture or associate. Unrealised gains and losses on transactions between the Group and its joint ventures and associates are eliminated to the extent of the Group\u2019s interest in these entities. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsInJointVentures",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-795": {
"value": "4. Joint ventures and associates \u2013 Joint ventures are entities in which the Group holds an interest on a long-term basis and has rights to the net assets through contractually agreed sharing of control. Associates are entities over which the Group has significant influence but not the power to control the financial and operating policies, generally accompanying a shareholding of between 20% and 50% of the voting rights. Ownership percentage is likely to be t he key indicator of investment classification; however, other factors, such as Board representation, may also affect the accounting classification. Judgement is required to assess all of the qualitative and quantitative factors which may indicate that the Group does, or does not, have significant influence over an investment. Investments in joint ventures and associates are accounted for by the equity method and are initially recognised at the fair value of consideration transferred. The Group\u2019s share of its joint ventures\u2019 and associates\u2019 post- acquisition profits or losses is recognised in the income statement and its share of post-acquisition movements in reserves is recognised in reserves. The Group\u2019s share of its joint ventures\u2019 and associates\u2019 results is recognised as a component of operating profit as these operations form part of the core publishing business of the Group and are an integral part of existing wholly-owned businesses. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the Group\u2019s share of losses in a joint venture or associate equals or exceeds its interest in the joint venture or associate, the Group does not recognise further losses unless the Group has incurred obligations or made payments on behalf of the joint venture or associate. Unrealised gains and losses on transactions between the Group and its joint ventures and associates are eliminated to the extent of the Group\u2019s interest in these entities. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociates",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-766": {
"value": "5. Contribution of a subsidiary to an associate or joint venture \u2013 The gain or loss resulting from the contribution or sale of a subsidiary to an associate or a joint venture is recognised in full. Where such transactions do not involve cash consideration, significant judgements and estimates are used in determining the fair values of the consideration received. ",
"dimensions": {
"concept": "pearsonplc:DescriptionOfAccountingPolicyForContributionOfASubsidiaryToAnAssociateOrJointVenture",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-703": {
"value": "Foreign currency translation 1. Functional and presentation currency \u2013 Items included in the financial statements of each of the Group\u2019s entities are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The consolidated financial statements are presented in sterling, which is the company\u2019s functional and presentation currency. 2. Transactions and balances \u2013 Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement, except when deferred in equity as qualifying net investment hedges. 3. Group companies \u2013 The results and financial position of all Group companies that have a functional currency different from the presentation currency are translated into the presentation currency as follows: \u2014 Assets and liabilities are translated at the closing rate at the date of the balance sheet \u2014 Income and expenses are translated at average exchange rates \u2014 All resulting exchange differences are recognised as a separate component of equity. On consolidation, exchange differences arising from the translation of the net investment in foreign entities, and of borrowings and other currency instruments designated as hedges of such investments, are taken to shareholders\u2019 equity. The Group treats specific inter- company loan balances, which are not intended to be repaid in the foreseeable future, as part of its net investment. When a foreign operation is sold, such exchange differences are recognised in the income statement as part of the gain or loss on sale. The principal overseas currency for the Group is the US dollar. The average rate for the year against sterling was $1.24 (2021: $1.38; 2020: $1.28) and the year-end rate was $1.21 (2021: 1.35; 2020: $1.37). ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-767": {
"value": "1. Functional and presentation currency \u2013 Items included in the financial statements of each of the Group\u2019s entities are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The consolidated financial statements are presented in sterling, which is the company\u2019s functional and presentation currency. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-704": {
"value": "Property, plant and equipment Property, plant and equipment are stated at historical cost less depreciation. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for intended use. Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost less their residual values over their estimated useful lives as follows: Buildings (freehold): 20\u201350 years Buildings (leasehold): over the period of the lease Plant and equipment: 3\u201310 years The assets\u2019 residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. The carrying value of an asset is written down to its recoverable amount if the carrying value of the asset is greater than its estimated recoverable amount. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-705": {
"value": "Investment property In 2022, the Group classified certain assets as investment property. Properties that are no longer occupied by the Group and which are held for operating lease rental are classified as investment property. Investment property assets are carried at cost less accumulated depreciation and any recognised impairment in value. The depreciation policies for investment property are consistent with those described for property, plant and equipment ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentPropertyExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-788": {
"value": "Intangible assets 1. Goodwill \u2013 For the acquisition of subsidiaries made on or after 1 January 2010, goodwill represents the excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired. For the acquisition of subsidiaries made from the date of transition to IFRS to 31 December 2009, goodwill represents the excess of the cost of an acquisition over the fair value of the Group\u2019s share of the net identifiable assets acquired. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on acquisition of associates and joint ventures represents the excess of the cost of an acquisition over the fair value of the Group\u2019s share of the net identifiable assets acquired. Goodwill on acquisitions of associates and joint ventures is included in investments in associates and joint ventures Goodwill is tested at least annually for impairment and carried at cost less accumulated impairment losses. An impairment loss is recognised to the extent that the carrying value of goodwill exceeds the recoverable amount. The recoverable amount is the higher of fair value less costs of disposal and value in use. These calculations require the use of estimates in respect of forecast cash flows and discount rates and significant management judgement in respect of cash-generating unit (CGU) and cost allocation; impairment is a key source of estimation uncertainty and has a significant risk of resulting in a material adjustment to the carrying amount of relevant assets within the next financial year. A summary of these assets by CGU and a description of the key assumptions and sensitivities is included in note 11. Goodwill is allocated to aggregated CGUs for the purpose of impairment testing. The allocation is made to those aggregated CGUs that are expected to benefit from the business combination in which the goodwill arose. Where there are changes to CGUs, goodwill is reallocated to the new CGUs and aggregation of CGUs using a relative value method. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. 2. Acquired software \u2013 Software separately acquired for internal use is capitalised at cost. Software acquired in material business combinations is capitalised at its fair value as determined by an independent valuer. The assets are assessed for impairment triggers on an annual basis or when triggering events occur. Acquired software is amortised on a straight-line basis over its estimated useful life of between three and eight years. 3. Internally developed software \u2013 Internal and external costs incurred during the preliminary stage of developing computer software for internal use are expensed as incurred. Internal and external costs incurred to develop computer software for internal use during the application development stage are capitalised if the Group expects economic benefits from the development. Capitalisation in the application development stage begins once the Group can reliably measure the expenditure attributable to the software development and has demonstrated its intention to complete and use the software. Internally developed software is amortised on a straight-line basis over its estimated useful life of between three and ten years. The assets are assessed for impairment triggers on an annual basis or when triggering events occur. 4. Acquired intangible assets \u2013 Acquired intangible assets include customer lists, contracts and relationships, trademarks and brands, publishing rights, content, technology and software rights. These assets are capitalised on acquisition at cost and included in intangible assets. Intangible assets acquired in material business combinations are capitalised at their fair value as determined by an independent valuer. The valuation of these assets are a key source of estimation uncertainty. Intangible assets are amortised over their estimated useful lives of between two and 20 years, using an amortisation method that reflects the pattern of their consumption. The assets are assessed for impairment triggers on an annual basis or when triggering events occur. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-768": {
"value": "Intangible assets 1. Goodwill \u2013 For the acquisition of subsidiaries made on or after 1 January 2010, goodwill represents the excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired. For the acquisition of subsidiaries made from the date of transition to IFRS to 31 December 2009, goodwill represents the excess of the cost of an acquisition over the fair value of the Group\u2019s share of the net identifiable assets acquired. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on acquisition of associates and joint ventures represents the excess of the cost of an acquisition over the fair value of the Group\u2019s share of the net identifiable assets acquired. Goodwill on acquisitions of associates and joint ventures is included in investments in associates and joint ventures 5. Product development assets \u2013 Product development assets represent direct costs incurred in the development of educational programmes and titles prior to their publication. These costs are recognised as current intangible assets where the title will generate probable future economic benefits and costs can be measured reliably. Product development assets relating to content are amortised upon publication of the title over estimated economic lives of seven years or less, being an estimate of the expected operating lifecycle of the title, with a higher proportion of the amortisation taken in the earlier years. Product development assets relating to product platforms are amortised over 10 years or less, being an estimate of the expected useful life. The assessment of the useful economic life and the recoverability of product development assets involves judgement and is based on historical trends and management estimation of future potential sales. Product development assets are assessed for impairment triggers on an annual basis or when triggering events occur. The carrying amount of product development assets is set out in note 20. The investment in product development assets has been disclosed as part of net cash generated from operating activities in the cash flow statement (see note 33). Goodwill is tested at least annually for impairment and carried at cost less accumulated impairment losses. An impairment loss is recognised to the extent that the carrying value of goodwill exceeds the recoverable amount. The recoverable amount is the higher of fair value less costs of disposal and value in use. These calculations require the use of estimates in respect of forecast cash flows and discount rates and significant management judgement in respect of cash-generating unit (CGU) and cost allocation; impairment is a key source of estimation uncertainty and has a significant risk of resulting in a material adjustment to the carrying amount of relevant assets within the next financial year. A summary of these assets by CGU and a description of the key assumptions and sensitivities is included in note 11. Goodwill is allocated to aggregated CGUs for the purpose of impairment testing. The allocation is made to those aggregated CGUs that are expected to benefit from the business combination in which the goodwill arose. Where there are changes to CGUs, goodwill is reallocated to the new CGUs and aggregation of CGUs using a relative value method. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. 2. Acquired software \u2013 Software separately acquired for internal use is capitalised at cost. Software acquired in material business combinations is capitalised at its fair value as determined by an independent valuer. The assets are assessed for impairment triggers on an annual basis or when triggering events occur. Acquired software is amortised on a straight-line basis over its estimated useful life of between three and eight years. 3. Internally developed software \u2013 Internal and external costs incurred during the preliminary stage of developing computer software for internal use are expensed as incurred. Internal and external costs incurred to develop computer software for internal use during the application development stage are capitalised if the Group expects economic benefits from the development. Capitalisation in the application development stage begins once the Group can reliably measure the expenditure attributable to the software development and has demonstrated its intention to complete and use the software. Internally developed software is amortised on a straight-line basis over its estimated useful life of between three and ten years. The assets are assessed for impairment triggers on an annual basis or when triggering events occur. 4. Acquired intangible assets \u2013 Acquired intangible assets include customer lists, contracts and relationships, trademarks and brands, publishing rights, content, technology and software rights. These assets are capitalised on acquisition at cost and included in intangible assets. Intangible assets acquired in material business combinations are capitalised at their fair value as determined by an independent valuer. The valuation of these assets are a key source of estimation uncertainty. Intangible assets are amortised over their estimated useful lives of between two and 20 years, using an amortisation method that reflects the pattern of their consumption. The assets are assessed for impairment triggers on an annual basis or when triggering events occur. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-706": {
"value": "Intangible assets 1. Goodwill \u2013 For the acquisition of subsidiaries made on or after 1 January 2010, goodwill represents the excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired. For the acquisition of subsidiaries made from the date of transition to IFRS to 31 December 2009, goodwill represents the excess of the cost of an acquisition over the fair value of the Group\u2019s share of the net identifiable assets acquired. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on acquisition of associates and joint ventures represents the excess of the cost of an acquisition over the fair value of the Group\u2019s share of the net identifiable assets acquired. Goodwill on acquisitions of associates and joint ventures is included in investments in associates and joint ventures . Goodwill is tested at least annually for impairment and carried at cost less accumulated impairment losses. An impairment loss is recognised to the extent that the carrying value of goodwill exceeds the recoverable amount. The recoverable amount is the higher of fair value less costs of disposal and value in use. These calculations require the use of estimates in respect of forecast cash flows and discount rates and significant management judgement in respect of cash-generating unit (CGU) and cost allocation; impairment is a key source of estimation uncertainty and has a significant risk of resulting in a material adjustment to the carrying amount of relevant assets within the next financial year. A summary of these assets by CGU and a description of the key assumptions and sensitivities is included in note 11. Goodwill is allocated to aggregated CGUs for the purpose of impairment testing. The allocation is made to those aggregated CGUs that are expected to benefit from the business combination in which the goodwill arose. Where there are changes to CGUs, goodwill is reallocated to the new CGUs and aggregation of CGUs using a relative value method. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. 2. Acquired software \u2013 Software separately acquired for internal use is capitalised at cost. Software acquired in material business combinations is capitalised at its fair value as determined by an independent valuer. The assets are assessed for impairment triggers on an annual basis or when triggering events occur. Acquired software is amortised on a straight-line basis over its estimated useful life of between three and eight years. 3. Internally developed software \u2013 Internal and external costs incurred during the preliminary stage of developing computer software for internal use are expensed as incurred. Internal and external costs incurred to develop computer software for internal use during the application development stage are capitalised if the Group expects economic benefits from the development. Capitalisation in the application development stage begins once the Group can reliably measure the expenditure attributable to the software development and has demonstrated its intention to complete and use the software. Internally developed software is amortised on a straight-line basis over its estimated useful life of between three and ten years. The assets are assessed for impairment triggers on an annual basis or when triggering events occur. 4. Acquired intangible assets \u2013 Acquired intangible assets include customer lists, contracts and relationships, trademarks and brands, publishing rights, content, technology and software rights. These assets are capitalised on acquisition at cost and included in intangible assets. Intangible assets acquired in material business combinations are capitalised at their fair value as determined by an independent valuer. The valuation of these assets are a key source of estimation uncertainty. Intangible assets are amortised over their estimated useful lives of between two and 20 years, using an amortisation method that reflects the pattern of their consumption. The assets are assessed for impairment triggers on an annual basis or when triggering events occur. 5. Product development assets \u2013 Product development assets represent direct costs incurred in the development of educational programmes and titles prior to their publication. These costs are recognised as current intangible assets where the title will generate probable future economic benefits and costs can be measured reliably. Product development assets relating to content are amortised upon publication of the title over estimated economic lives of seven years or less, being an estimate of the expected operating lifecycle of the title, with a higher proportion of the amortisation taken in the earlier years. Product development assets relating to product platforms are amortised over 10 years or less, being an estimate of the expected useful life. The assessment of the useful economic life and the recoverability of product development assets involves judgement and is based on historical trends and management estimation of future potential sales. Product development assets are assessed for impairment triggers on an annual basis or when triggering events occur. The carrying amount of product development assets is set out in note 20. The investment in product development assets has been disclosed as part of net cash generated from operating activities in the cash flow statement (see note 33). ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-707": {
"value": "Other financial assets Other financial assets are non-derivative financial assets classified and measured at estimated fair value. Marketable securities and cash deposits with maturities of greater than three months are classified and subsequently measured at fair value through profit and loss (FVTPL). They are remeasured at each balance sheet date by using market data and the use of established valuation techniques. Any movement in the fair value is immediately recognised in finance income or finance costs in the income statement. Investments in the equity instruments of other entities are classified and subsequently measured at fair value through other comprehensive income (FVOCI). Changes in fair value are recorded in equity in the fair value reserve via other comprehensive income. On subsequent disposal of the asset, the net fair value gains or losses are reclassified from the fair value reserve to retained earnings. Any dividends received from equity investments classified as FVOCI are recognised in the income statement unless they represent a return of capital. Investments in funds which have a limited life are classified and subsequently measured at fair value through profit and loss (FVTPL). Changes in fair value are included within net finance costs within the income statement and excluded from adjusted earnings. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-708": {
"value": "Inventories Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted average method or an approximation thereof, such as the first in first out (FIFO) method. The cost of finished goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs necessary to make the sale. Provisions are made for slow-moving and obsolete stock. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-709": {
"value": "Royalty advances Advances of royalties to authors are included within trade and other receivables when the advance is paid less any provision required to adjust the advance to its net realisable value. The realisable value of royalty advances relies on a degree of management estimation in determining the profitability of individual author contracts. If the estimated realisable value of author contracts is overstated, this will have an adverse effect on operating profits as these excess amounts will be written off. The recoverability of royalty advances is based upon an annual detailed management review of the age of the advance, the future sales projections for new authors and prior sales history of repeat authors. The royalty advance is expensed at the contracted or effective royalty rate as the related revenues are earned. Royalty advances which will be consumed within one year are held in current assets. Royalty advances which will be consumed after one year are held in non-current assets. ",
"dimensions": {
"concept": "pearsonplc:DescriptionOfAccountingPolicyForRoyaltyAdvances",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-710": {
"value": "Cash and cash equivalents Cash and cash equivalents in the cash flow statement include cash in hand, deposits held on call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are included in borrowings in current liabilities in the balance sheet. Short-term deposits and marketable securities with maturities of greater than three months do not qualify as cash and cash equivalents and are reported as financial assets. Movements on these financial assets are classified as cash flows from financing activities in the cash flow statement where these amounts are used to offset the borrowings of the Group or as cash flows from investing activities where these amounts are held to generate an investment return. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-711": {
"value": "Share capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Where any Group company purchases the company\u2019s equity share capital (treasury shares), the consideration paid, including any directly attributable incremental costs, net of income taxes, is deducted from equity attributable to the company\u2019s equity holders until the shares are cancelled, reissued or disposed of. Where such shares are subsequently sold or reissued, any consideration received, net of any directly attributable transaction costs and the related income tax effects, is included in equity attributable to the company\u2019s equity holders. Ordinary shares purchased under a buyback programme are cancelled and the nominal value of the shares is transferred to a capital redemption reserve. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIssuedCapitalExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-712": {
"value": "Borrowings Borrowings are recognised initially at fair value, which is proceeds received net of transaction costs incurred. Borrowings are subsequently stated at amortised cost with any difference between the proceeds (net of transaction costs) and the redemption value being recognised in the income statement over the period of the borrowings using the effective interest method. Accrued interest is included as part of borrowings. Where a debt instrument is in a fair value hedging relationship, an adjustment is made to its carrying value in the income statement to reflect the hedged risk. Where a debt instrument is in a net investment hedge relationship, gains and losses on the effective portion of the hedge are recognised in other comprehensive income. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-789": {
"value": "Derivative financial instruments Derivatives are recognised at fair value and remeasured at each balance sheet date. The fair value of derivatives is determined by using market data and the use of established estimation techniques such as discounted cash flow and option valuation models. For derivatives in a hedge relationship, the currency basis spread is excluded from the designation as a hedging instrument. Changes in the fair value of derivatives are recognised immediately in finance income or costs. However, derivatives relating to borrowings and certain foreign exchange contracts are designated as part of a hedging transaction. The accounting treatment is summarised as follows: Typical reason for designation Reporting of gains and losses on effective portion of the hedge Reporting of gains and losses on disposal Net investment hedge The derivative creates a foreign currency liability which is used to hedge changes in the value of a subsidiary which transacts in that currency. Recognised in other comprehensive income. On the disposal of foreign operations or subsidiaries, the accumulated value of gains and losses reported in other comprehensive income is transferred to the income statement. Fair value hedges The derivative transforms the interest profile on debt from fixed rate to floating rate. Changes in the value of the debt as a result of changes in interest rates and foreign exchange rates are offset by equal and opposite changes in the value of the derivative. When the Group\u2019s debt is swapped to floating rates, the contracts used are designated as fair value hedges. Gains and losses on the derivative are reported in finance income or finance costs. However, an equal and opposite change is made to the carrying value of the debt (a \u2018fair value adjustment\u2019) with the benefit/ cost reported in finance income or finance costs. The net result should be a zero charge on a perfectly effective hedge. If the debt and derivative are disposed of, the value of the derivative and the debt (including the fair value adjustment) are reset to zero. Any resultant gain or loss is recognised in finance income or finance costs. Non-hedge accounted contracts These are not designated as hedging instruments. Typically, these are short-term contracts to convert debt back to fixed rates or foreign exchange contracts where a natural offset exists. Recognised in the income statement. No hedge accounting applies. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForHedgingExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-769": {
"value": "Derivative financial instruments Derivatives are recognised at fair value and remeasured at each balance sheet date. The fair value of derivatives is determined by using market data and the use of established estimation techniques such as discounted cash flow and option valuation models. For derivatives in a hedge relationship, the currency basis spread is excluded from the designation as a hedging instrument. Changes in the fair value of derivatives are recognised immediately in finance income or costs. However, derivatives relating to borrowings and certain foreign exchange contracts are designated as part of a hedging transaction. The accounting treatment is summarised as follows: Typical reason for designation Reporting of gains and losses on effective portion of the hedge Reporting of gains and losses on disposal Net investment hedge The derivative creates a foreign currency liability which is used to hedge changes in the value of a subsidiary which transacts in that currency. Recognised in other comprehensive income. On the disposal of foreign operations or subsidiaries, the accumulated value of gains and losses reported in other comprehensive income is transferred to the income statement. Fair value hedges The derivative transforms the interest profile on debt from fixed rate to floating rate. Changes in the value of the debt as a result of changes in interest rates and foreign exchange rates are offset by equal and opposite changes in the value of the derivative. When the Group\u2019s debt is swapped to floating rates, the contracts used are designated as fair value hedges. Gains and losses on the derivative are reported in finance income or finance costs. However, an equal and opposite change is made to the carrying value of the debt (a \u2018fair value adjustment\u2019) with the benefit/ cost reported in finance income or finance costs. The net result should be a zero charge on a perfectly effective hedge. If the debt and derivative are disposed of, the value of the derivative and the debt (including the fair value adjustment) are reset to zero. Any resultant gain or loss is recognised in finance income or finance costs. Non-hedge accounted contracts These are not designated as hedging instruments. Typically, these are short-term contracts to convert debt back to fixed rates or foreign exchange contracts where a natural offset exists. Recognised in the income statement. No hedge accounting applies. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-713": {
"value": "Derivative financial instruments Derivatives are recognised at fair value and remeasured at each balance sheet date. The fair value of derivatives is determined by using market data and the use of established estimation techniques such as discounted cash flow and option valuation models. For derivatives in a hedge relationship, the currency basis spread is excluded from the designation as a hedging instrument. Changes in the fair value of derivatives are recognised immediately in finance income or costs. However, derivatives relating to borrowings and certain foreign exchange contracts are designated as part of a hedging transaction. The accounting treatment is summarised as follows: Typical reason for designation Reporting of gains and losses on effective portion of the hedge Reporting of gains and losses on disposal Net investment hedge The derivative creates a foreign currency liability which is used to hedge changes in the value of a subsidiary which transacts in that currency. Recognised in other comprehensive income. On the disposal of foreign operations or subsidiaries, the accumulated value of gains and losses reported in other comprehensive income is transferred to the income statement. Fair value hedges The derivative transforms the interest profile on debt from fixed rate to floating rate. Changes in the value of the debt as a result of changes in interest rates and foreign exchange rates are offset by equal and opposite changes in the value of the derivative. When the Group\u2019s debt is swapped to floating rates, the contracts used are designated as fair value hedges. Gains and losses on the derivative are reported in finance income or finance costs. However, an equal and opposite change is made to the carrying value of the debt (a \u2018fair value adjustment\u2019) with the benefit/ cost reported in finance income or finance costs. The net result should be a zero charge on a perfectly effective hedge. If the debt and derivative are disposed of, the value of the derivative and the debt (including the fair value adjustment) are reset to zero. Any resultant gain or loss is recognised in finance income or finance costs. Non-hedge accounted contracts These are not designated as hedging instruments. Typically, these are short-term contracts to convert debt back to fixed rates or foreign exchange contracts where a natural offset exists. Recognised in the income statement. No hedge accounting applies. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-770": {
"value": "Taxation Current tax is recognised at the amounts expected to be paid or recovered under the tax rates and laws that have been enacted or substantively enacted at the balance sheet date. Deferred income tax is provided, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred income tax liability is settled. Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. Deferred income tax is provided in respect of the undistributed earnings of subsidiaries, associates and joint ventures other than where it is intended that those undistributed earnings will not be remitted in the foreseeable future. Current and deferred tax are recognised in the income statement, except when the tax relates to items charged or credited directly to equity or other comprehensive income, in which case the tax is also recognised in equity or other comprehensive income. The Group is subject to income taxes in numerous jurisdictions. Significant judgement is required in determining the estimates in relation to the worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognises tax provisions when it is considered probable that there will be a future outflow of funds to a tax authority. The provisions are based on management\u2019s best judgement of the application of tax legislation and best estimates of future settlement amounts (see note 7). Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. Deferred tax assets and liabilities require management judgement and estimation in determining the amounts to be recognised. In particular, when assessing the extent to which deferred tax assets should be recognised, significant judgement is used when considering the timing of the recognition and estimation is used to determine the level of future taxable income together with any future tax planning strategies (see note 13). ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-714": {
"value": "Taxation Current tax is recognised at the amounts expected to be paid or recovered under the tax rates and laws that have been enacted or substantively enacted at the balance sheet date. Deferred income tax is provided, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred income tax liability is settled. Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. Deferred income tax is provided in respect of the undistributed earnings of subsidiaries, associates and joint ventures other than where it is intended that those undistributed earnings will not be remitted in the foreseeable future. Current and deferred tax are recognised in the income statement, except when the tax relates to items charged or credited directly to equity or other comprehensive income, in which case the tax is also recognised in equity or other comprehensive income. The Group is subject to income taxes in numerous jurisdictions. Significant judgement is required in determining the estimates in relation to the worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognises tax provisions when it is considered probable that there will be a future outflow of funds to a tax authority. The provisions are based on management\u2019s best judgement of the application of tax legislation and best estimates of future settlement amounts (see note 7). Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. Deferred tax assets and liabilities require management judgement and estimation in determining the amounts to be recognised. In particular, when assessing the extent to which deferred tax assets should be recognised, significant judgement is used when considering the timing of the recognition and estimation is used to determine the level of future taxable income together with any future tax planning strategies (see note 13). ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-715": {
"value": "Employee benefits 1. Pensions \u2013 The retirement benefit asset and obligation recognised in the balance sheet represent the net of the present value of the defined benefit obligation and the fair value of plan assets at the balance sheet date. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting estimated future cash flows using yields on high-quality corporate bonds which have terms to maturity approximating the terms of the related liability. When the calculation results in a potential asset, the recognition of that asset is limited to the asset ceiling \u2013 that is the present value of any economic benefits available in the form of refunds from the plan or a reduction in future contributions. Management uses judgement to determine the level of refunds available from the plan in recognising an asset. The determination of the pension cost and defined benefit obligation of the Group\u2019s defined benefit pension schemes depends on the selection of certain assumptions, which include the discount rate, inflation rate, salary growth and longevity (see note 25). Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise. The service cost, representing benefits accruing over the year, is included in the income statement as an operating cost. Net interest is calculated by applying the discount rate to the net defined benefit obligation and is presented as finance costs or finance income. Obligations for contributions to defined contribution pension plans are recognised as an operating expense in the income statement as incurred. 2. Other post-retirement obligations \u2013 The expected costs of post-retirement medical and life assurance benefits are accrued over the period of employment, using a similar accounting methodology as for defined benefit pension obligations. The liabilities and costs relating to significant other post-retirement obligations are assessed annually by independent qualified actuaries. 3. Share-based payments \u2013 The fair value of options or shares granted under the Group\u2019s share and option plans is recognised as an employee expense after taking into account the Group\u2019s best estimate of the number of awards expected to vest. Fair value is measured at the date of grant and is spread over the vesting period of the option or share. The fair value of the options granted is measured using an option model that is most appropriate to the award. The fair value of shares awarded is measured using the share price at the date of grant unless another method is more appropriate. Any proceeds received are credited to share capital and share premium when the options are exercised. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-771": {
"value": "3. Share-based payments \u2013 The fair value of options or shares granted under the Group\u2019s share and option plans is recognised as an employee expense after taking into account the Group\u2019s best estimate of the number of awards expected to vest. Fair value is measured at the date of grant and is spread over the vesting period of the option or share. The fair value of the options granted is measured using an option model that is most appropriate to the award. The fair value of shares awarded is measured using the share price at the date of grant unless another method is more appropriate. Any proceeds received are credited to share capital and share premium when the options are exercised. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-716": {
"value": "Provisions Provisions are recognised if the Group has a present legal or constructive obligation as a result of past events; it is more likely than not that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are discounted to present value where the effect is material. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-717": {
"value": "Revenue recognition The Group\u2019s revenue streams are courseware, assessments and services. Courseware includes curriculum materials provided in book form and/or via access to digital content. Assessments includes test development, processing and scoring services provided to governments, educational institutions, corporations and professional bodies. Services includes the operation of schools, colleges and universities, as well as the provision of online learning services in partnership with universities and other academic institutions. Revenue is recognised in order to depict the transfer of control of promised goods and services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods and services. This process begins with the identification of our contract with a customer, which is generally through a master services agreement, customer purchase order, or a combination thereof. Within each contract, judgement is applied to determine the extent to which activities within the contract represent distinct performance obligations to be delivered and the total amount of transaction price to which we expect to be entitled. The transaction price determined is net of sales taxes, rebates and discounts, and after eliminating sales within the Group. Where a contract contains multiple performance obligations such as the provision of supplementary materials or online access with textbooks, revenue is allocated on the basis of relative standalone selling prices. Where a contract contains variable consideration, significant estimation is required to determine the amount to which the Group is expected to be entitled. Revenue is recognised on contracts with customers when or as performance obligations are satisfied, which is the period or the point in time where control of goods or services transfers to the customer. Judgement is applied to determine first whether control passes over time and if not, then the point in time at which control passes. Where revenue is recognised over time, judgement is used to determine the method which best depicts the transfer of control. Where an input method is used, significant estimation is required to determine the progress towards delivering the performance obligation. Revenue from the sale of books is recognised net of a provision for anticipated returns. This provision is based primarily on historical return rates, customer buying patterns and retailer behaviours including stock levels (see note 24). If these estimates do not reflect actual returns in future periods then revenues could be understated or overstated for a particular period. When the provision for returns is remeasured at each reporting date to reflect changes in estimates, a corresponding adjustment is also recorded to revenue. The Group may enter into contracts with another party in addition to our customer. In making the determination as to whether revenue should be recognised on a gross or net basis, the contract with the customer is analysed to understand which party controls the relevant good or service prior to transferring to the customer. This judgement is informed by facts and circumstances of the contract in determining whether the Group has promised to provide the specified good or service or whether the Group is arranging for the transfer of the specified good or service, including which party is responsible for fulfilment, has discretion to set the price to the customer and is responsible for inventory risk. On certain contracts, where the Group acts as an agent, only commissions and fees receivable for services rendered are recognised as revenue. Any third-party costs incurred on behalf of the principal that are rechargeable under the contractual arrangement are not included in revenue. Income from recharges of freight and other activities which are incidental to the normal revenue-generating activities is included in other income. Additional details on the Group\u2019s revenue streams are also included in note 3. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-718": {
"value": "Leases The Group as a lessee The Group assesses whether a contract is or contains a lease at the inception of the contract. A contract is, or contains a lease, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Group recognises a right-of-use asset and a lease liability at the lease commencement date with respect to all lease arrangements except for short-term leases (leases with a lease term of 12 months or less) and leases of low-value assets. For these leases, the lease payments are recognised as an operating expense on a straight-line basis over the term of the lease. The right-of-use asset is initially measured at cost, comprising the initial amount of the lease liability plus any initial direct costs incurred and an estimate of costs to restore the underlying asset, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the asset or the end of the lease term. The Group applies IAS 36 to determine whether a right-of-use asset is impaired. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the incremental borrowing rate. The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or a rate or a change in the Group\u2019s assessment of whether it will exercise an extension or termination option. When the lease liability is remeasured, a corresponding adjustment is made to the right-of-use asset. Management uses judgement to determine the lease term where extension and termination options are available within the lease. The Group as a lessor When the Group is an intermediate lessor, the head lease and sublease are accounted for as two separate contracts. The head lease is accounted for as per the lessee policy above. The sublease is classified as a finance lease or operating lease by reference to the right-of-use asset arising from the head lease. Where the lease transfers substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease; all other leases are classified as operating leases. Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Amounts due from lessees under finance subleases are recognised as receivables at the amount of the Group\u2019s net investment in the leases discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the discount rate used in the head lease. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-719": {
"value": "Dividends Final dividends are recorded in the Group\u2019s financial statements in the period in which they are approved by the company\u2019s shareholders. Interim dividends are recorded when paid. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDividendsExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-772": {
"value": "Discontinued operations A discontinued operation is a component of the Group\u2019s business that represents a separate major line of business or geographical area of operations that has been disposed of or meets the criteria to be classified as held for sale. When applicable, discontinued operations are presented in the income statement as a separate line and are shown net of tax. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDiscontinuedOperationsExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-720": {
"value": "Discontinued operations A discontinued operation is a component of the Group\u2019s business that represents a separate major line of business or geographical area of operations that has been disposed of or meets the criteria to be classified as held for sale. When applicable, discontinued operations are presented in the income statement as a separate line and are shown net of tax. Assets and liabilities held for sale Assets and liabilities are classified as held for sale and stated at the lower of carrying amount and fair value less costs to sell if it is highly probable that the carrying amount will be recovered principally through a sale transaction rather than through continuing use. No depreciation is charged in respect of non-current assets classified as held for sale. Amounts relating to non-current assets and liabilities held for sale are classified as discontinued operations in the income statement where appropriate. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleAndDiscontinuedOperationsExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-773": {
"value": "Assets and liabilities held for sale Assets and liabilities are classified as held for sale and stated at the lower of carrying amount and fair value less costs to sell if it is highly probable that the carrying amount will be recovered principally through a sale transaction rather than through continuing use. No depreciation is charged in respect of non-current assets classified as held for sale. Amounts relating to non-current assets and liabilities held for sale are classified as discontinued operations in the income statement where appropriate. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-721": {
"value": "Trade receivables Trade receivables are stated at fair value after provision for bad and doubtful debts. Provisions for bad and doubtful debts are based on the expected credit loss model. The \u2018simplified approach\u2019 is used with the expected loss allowance measured at an amount equal to the lifetime expected credit losses. A provision for anticipated future sales returns is included within trade and other liabilities (also see Revenue recognition policy). ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-724": {
"value": "1b. Comparative period revisions In 2022, the Group identified an error related to the classification of certain investments in unlisted securities. Investments that should have been accounted for at fair value through profit and loss were previously accounted for at fair value through other comprehensive income. The investments are held at fair value within other financial assets on the balance sheet. Having assessed both the quantitative and qualitative factors, the Group has determined that the error did not have a material impact on its previously issued consolidated financial statements. However, the comparative financial statement line items have been corrected to reflect the change in accounting treatment. The fair value movements are now recorded within finance income, rather than within other comprehensive income. All impacted primary statements and related notes have been restated. For the year ended 31 December 2021, the revision has resulted in an increase in finance income and a corresponding increase in profit before tax of \u00a320m, a reduction in the income tax benefit of \u00a32m, an increase in profit for the year and profit for the year attributable to equity holders of the company of \u00a318m, a decrease in the fair value gain on other financial assets through other comprehensive income of \u00a320m with an increase in the attributable tax of \u00a32m, resulting in a decrease in other comprehensive income for the year of \u00a318m, and no change in total comprehensive income for the year, all as compared to amounts previously reported. For the year ended 31 December 2020, the revision has resulted in an increase in finance income and a corresponding increase in profit before tax of \u00a326m, an increase in income tax expense of \u00a36m, an increase in profit for the year and profit for the year attributable to equity holders of the company of \u00a320m, a decrease in the fair value gain on other financial assets through other comprehensive income of \u00a326m with an increase in the attributable tax of \u00a36m, resulting in a decrease in other comprehensive income for the year of \u00a320m, and no change in total comprehensive income for the year, all as compared to amounts previously reported. The impact on both basic and diluted earnings per share attributable to equity holders of the company is an increase of 2.4p for 2021 and 2.7p for 2020. The restatement had no balance sheet impact except within equity. Opening retained earnings as at 1 January 2020 have increased by \u00a331m and closing retained earnings as at 31 December 2020 have increased by \u00a357m and an equivalent decrease has been recorded to the opening and closing fair value reserve. Closing retained earnings at 31 December 2021 has increased by \u00a337m and an equivalent decrease has been recorded to the closing fair value reserve. The restatement has no impact on the carrying amount of other financial assets in the balance sheet and has no impact on reported net assets, cash flows or total equity. Accordingly, an additional balance sheet as at 1 January 2020 has not been presented. The fair value movements now presented in the income statements are excluded from adjusted measures as described in note 8, as a result there is no impact to any adjusted measures. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfReclassificationsOrChangesInPresentationExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-722": {
"value": "1c. Going concern In assessing the Group\u2019s ability to continue as a going concern for the period to 30 June 2024, the Board reviewed management\u2019s four-year plan, which was used as the base case. The review included available liquidity throughout the period and headroom against the Group\u2019s two main covenants, which require net debt to EBITDA to be a maximum of four times and interest cover to be at least three times. At 31 December 2022, the Group had available liquidity of \u00a31.4bn, comprising central cash balances and its undrawn $1.19bn Revolving Credit Facility (RCF). In February 2023, the maximum RCF facility size was reduced to $1bn and the model used reflects this change. Significant liquidity and covenant headroom was observed throughout the assessment period in this base model. A severe but plausible scenario was analysed, where the Group is impacted by all principal risks in both 2023 and 2024, adjusted for probability weighting as well as other significant risks. For this and other downside scenarios tested, the acquisition of PDRI is assumed to be completed and a further capital allocation outflow of \u00a3350m is modelled. In the severe but plausible scenario, adjusted operating profit is reduced by around 30%, with a similar impact on operating cashflow. Significant liquidity and covenant headroom was observed throughout the assessment period even before any mitigation actions which management would take if these downside risks were to crystalise. A reverse stress test was performed to identify the reduction in profit required to cease to be a going concern at or before 30 June 2024. This was achieved in the model through a covenant breach in June 2024 triggering repayment of the Group\u2019s debts. The model showed that operating losses were required, with profits reduced by around \u00a3750m per year in both 2023 and 2024. This significantly exceeded the severe but plausible downside scenario. The Directors consider this reverse stress test scenario to be implausible. The Directors have confirmed that there are no material uncertainties that cast doubt on the Group\u2019s going concern status and that they have a reasonable expectation that the Group has adequate resources to continue in operational existence beyond 30 June 2024. The consolidated financial statements have therefore been prepared on a going concern basis. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGoingConcernExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-723": {
"value": "1d. Climate change The Group has assessed the impacts of climate change on the Group\u2019s financial statements , including our commitment to achieving net zero by 2030, and the actions the Group intends to take to achieve those targets. The assessment did not identify any material impact on the Group\u2019s significant judgements or estimates at 31 December 2022, or the assessment of going concern for the period to June 2024 and the Group\u2019s viability over the next four years. Specifically, we have considered the following areas: \u2014 The physical and transition risks associated with climate change; and \u2014 The actions the Group is taking to meet its carbon reduction and net zero targets. As a result, the Group has assessed the impacts of climate change on the financial statements, and in particular, on the following areas: \u2014 The impact on the Group\u2019s future cash flows, and the resulting impact that such adjustments to our future cash flows would have on the outcome of the annual impairment testing of our goodwill balances (see note 11 for further details), the recognition of deferred tax assets and our assessment of going concern; \u2014 The carrying value of the Group\u2019s assets, in particular the recoverable amounts of inventories, product development assets, intangible assets and property, plant and equipment; and \u2014 Any changes to our estimates of the useful economic lives of product development assets, intangible assets and property, plant and equipment. ",
"dimensions": {
"concept": "pearsonplc:DescriptionOfAccountingPolicyForClimateChange",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-725": {
"value": "2. Segment information On 8 March 2021, the Group announced a new strategy, which included a new management structure and operating model. As a result, the primary operating segments reported to the Group\u2019s chief operating decision-maker, the Pearson Executive Management team, changed from 1 July 2021 to reflect the new Group structure. There are five main global business divisions, which are each considered separate operating segments for management and reporting purposes. These five divisions are Assessment & Qualifications, Virtual Learning, English Language Learning, Higher Education and Workforce Skills. In addition, the International Courseware local publishing businesses, which were under strategic review, were being managed as a separate division, known as Strategic Review. In 2022, some of the businesses from the Strategic Review division have been disposed of (see note 31) and the decision was made to retain the English-speaking Canadian and Australian K12 courseware businesses. Both of these businesses have been transferred from the Strategic Review division to the Assessment & Qualifications division to reflect changes to the management and reporting structure. Comparative figures for 2021 and 2020 have been restated to reflect the move between segments, resulting in \u00a334m of sales being transferred from the Strategic Review division to the Assessment & Qualifications division in 2021 and \u00a336m in 2020. The Group has separately disclosed the results from the Penguin Random House associate to the point of disposal in April 2020. The following describes the principal activities of the five main operating segments: \u2014 Assessment & Qualifications \u2013 Pearson VUE, US Student Assessment, Clinical Assessment, UK GCSE and A Levels and International academic qualifications and associated courseware including the English-speaking Canadian and Australian K-12 businesses; \u2014 Virtual Learning \u2013 Virtual Schools and Online Program Management; \u2014 English Language Learning \u2013 Pearson Test of English, Institutional Courseware and English Online Solutions; \u2014 Workforce Skills \u2013 BTEC, GED, TalentLens, Faethm, Credly, Pearson College and Apprenticeships; and \u2014 Higher Education \u2013 US, Canadian and International Higher Education Courseware businesses. For more detail on the services and products included in each operating segment, refer to the strategic report. All figures in \u00a3 millions Notes 2022 Assessment & Qualifications Virtual Learning English Language Learning Workforce Skills Higher Education Strategic Review Penguin Random House Group Sales 3 1,444 820 321 204 898 154 \u2013 3,841 Adjusted operating profit 258 70 25 (3) 91 15 \u2013 456 Cost of major restructuring (39) (29) (11) (7) (63) (1) \u2013 (150) Intangible charges (14) (21) (6) (12) (3) \u2013 \u2013 (56) UK Pension discretionary increases (1) (1) \u2013 \u2013 (1) \u2013 \u2013 (3) Other net gains and losses (2) (2) (11) \u2013 \u2013 39 \u2013 24 Operating profit/(loss) 202 17 (3) (22) 24 53 \u2013 271 Finance costs 6 (71) Finance income 6 123 Profit before tax 323 Income tax 7 (79) Profit for the year 244 Other segment items Share of results of joint ventures and associates 12 \u2013 (2) 4 (1) \u2013 \u2013 \u2013 1 Depreciation and impairment 10 63 31 7 6 26 3 \u2013 136 Amortisation and impairment 11, 20 139 77 44 27 175 20 \u2013 482 All figures in \u00a3 millions Notes 2021 Assessment & Qualifications Virtual Learning English Language Learning Workforce Skills Higher Education Strategic Review Penguin Random House Group1 Sales 3 1,238 713 238 172 849 218 \u2013 3,428 Adjusted operating profit 219 32 15 27 73 19 \u2013 385 Cost of major restructuring (48) (48) (27) (28) (63) \u2013 \u2013 (214) Intangible charges (13) (25) (3) (7) (2) (1) \u2013 (51) Other net gains and losses \u2013 \u2013 \u2013 (2) \u2013 65 \u2013 63 Operating profit/(loss) 158 (41) (15) (10) 8 83 \u2013 183 Finance costs 6 (68) Finance income 6 62 Profit before tax 177 Income tax 7 1 Profit for the year 178 Other segment items Share of results of joint ventures and associates 12 \u2013 (1) 3 (1) \u2013 \u2013 \u2013 1 Depreciation and impairment 10 92 48 14 9 63 15 \u2013 241 Amortisation and impairment 11, 20 134 67 34 25 165 21 \u2013 446 1. Comparative balances have been restated to reflect the move between operating segments. All figures in \u00a3 millions Notes 2020 Assessment & Qualifications Virtual Learning English Language Learning Workforce Skills Higher Education Strategic Review Penguin Random House Group1 Sales 3 1,118 692 218 163 956 250 \u2013 3,397 Adjusted operating profit 147 29 1 26 93 16 1 313 Cost of major restructuring \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Intangible charges (29) (30) (7) (8) (3) (3) \u2013 (80) Other net gains and losses \u2013 \u2013 \u2013 \u2013 \u2013 (2) 180 178 Operating profit/(loss) 118 (1) (6) 18 90 11 181 411 Finance costs 6 (107) Finance income 6 76 Profit before tax 380 Income tax 7 (50) Profit for the year 330 Other segment items Share of results of joint ventures and associates \u2013 \u2013 4 \u2013 \u2013 \u2013 1 5 Depreciation and impairment 53 21 7 5 28 11 \u2013 125 Amortisation and impairment 154 64 34 24 167 29 \u2013 472 1. Comparative balances have been restated to reflect the move between operating segments. The Group operates in the following main geographic areas: All figures in \u00a3 millions Sales Non-current assets 2022 2021 2020 2022 2021 UK 424 355 319 527 578 Other European countries 192 249 216 192 122 US 2,668 2,182 2,335 2,333 2,034 Canada 110 111 91 243 217 Asia Pacific 290 359 251 200 190 Other countries 157 172 185 17 18 Total 3,841 3,428 3,397 3,512 3,159 Sales are allocated based on the country in which the customer is located. This does not differ materially from the location where the order is received. The geographical split of non-current assets is based on the subsidiary\u2019s country of domicile. This is not materially different to the location of the assets. Non-current assets comprise investment property, property, plant and equipment, intangible assets and investments in joint ventures and associates. 2. Segment information continued There were no material inter-segment sales in either 2022, 2021 or 2020. Corporate costs are allocated to business segments on an appropriate basis depending on the nature of the cost and therefore the total segment result is equal to the Group operating profit. For additional detailed information on the calculation of adjusted operating profit as shown in the above tables, see pages 215-219 (Financial key performance indicators). Adjusted operating profit is shown in the above tables as it is the key financial measure used by management to evaluate the performance of the Group. The measure also enables investors to more easily, and consistently, track the underlying operational performance of the Group and its business segments over time by separating out those items of income and expenditure relating to acquisition and disposal transactions, major restructuring programmes and certain other items that are also not representative of underlying performance, which are explained below and reconciled in note 8. Cost of major restructuring \u2013 In August 2022, the Group announced a major restructuring programme to run in 2022. The programme includes efficiencies in product and content, support costs, technology and corporate property. The restructuring costs in 2022 of \u00a3150m mainly relate to staff redundancies and impairment of right-of-use property assets. In 2021, restructuring costs of \u00a3214m mainly related to the impairment of right-of-use property assets, the write-down of product development assets and staff redundancies. The 2022 charge includes the impact of updated assumptions related to the recoverability of right-of-use assets made in 2021. The costs of these restructuring programmes are significant enough to exclude from the adjusted operating profit measure so as to better highlight the underlying performance (see note 4). There was no major restructuring in 2020. Intangible charges \u2013 These represent charges relating to intangibles acquired through business combinations. These charges are excluded as they reflect past acquisition activity and do not necessarily reflect the current year performance of the Group. Intangible amortisation charges in 2022 were \u00a356m compared to a charge of \u00a351m in 2021. This is due to increased amortisation from recent acquisitions which is partially offset by a reduction in amortisation from intangible assets at the end of their useful life and recent disposals. In 2022 and 2021, intangible charges included no impairment charges. In 2020, intangible charges were \u00a380m including impairment charges of \u00a312m. Other net gains and losses \u2013 These represent profits and losses on the sale of subsidiaries, joint ventures, associates and other financial assets and are excluded from adjusted operating profit as they distort the performance of the Group as reported on a statutory basis. Other net gains and losses also includes costs related to business closures and acquisitions. Other net gains and losses in 2022 relate to the gains on the disposal of our international courseware local publishing businesses in Europe, French-speaking Canada and Hong Kong and a gain arising on a decrease in the deferred consideration payable on prior year acquisitions, offset by a loss on disposal of our international courseware local publishing businesses in South Africa due to recycling of currency translation adjustments and costs related to disposals and acquisitions. Other net gains and losses in 2021 largely related to the disposal of PIHE and the disposal of the K12 Sistemas business in Brazil offset by costs related to the acquisition of Faethm and the wind down of certain strategic review businesses. In 2020, they largely relate to the sale of the remaining interest in Penguin Random House (\u00a3180m gain). UK pension discretionary increases - Charges in 2022 relate to one-off pension increases awarded to certain cohorts of pensioners in response to the cost of living crisis. Adjusted operating profit should not be regarded as a complete picture of the Group\u2019s financial performance. For example, adjusted operating profit includes the benefits of major restructuring programmes but excludes the significant associated costs, and adjusted operating profit excludes costs related to acquisitions, and the amortisation of intangibles acquired in business combinations, but does not exclude the associated revenues. The Group\u2019s definition of adjusted operating profit may not be comparable to other similarly titled measures reported by other companies. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-726": {
"value": "3. Revenue from contracts with customers The following tables analyse the Group\u2019s revenue streams. Courseware includes curriculum materials provided in book form and/or via access to digital content. Assessments includes integrated test development, processing and scoring services provided to governments, educational institutions, corporations and professional bodies. Services includes the operation of schools, colleges and universities, including sistemas in Brazil, until disposed, as well as the provision of online learning services in partnership with universities and other academic institutions. Comparative figures for 2021 and 2020 have been restated to reflect the move between segments. The Group derived revenue from the transfer of goods and services over time and at a point in time in the following major product lines: All figures in \u00a3 millions 2022 Assessment & Qualifications Virtual Learning English Language Learning Workforce Skills Higher Education Strategic Review Total Courseware Products transferred at a point in time 64 \u2013 110 2 302 148 626 Products and services transferred over time 21 \u2013 25 \u2013 588 6 640 85 \u2013 135 2 890 154 1,266 Assessments Products transferred at a point in time 169 \u2013 5 14 \u2013 \u2013 188 Products and services transferred over time 1,190 \u2013 138 142 \u2013 \u2013 1,470 1,359 \u2013 143 156 \u2013 \u2013 1,658 Services Products transferred at a point in time \u2013 \u2013 29 \u2013 \u2013 \u2013 29 Products and services transferred over time \u2013 820 14 46 8 \u2013 888 \u2013 820 43 46 8 \u2013 917 Total 1,444 820 321 204 898 154 3,841 All figures in \u00a3 millions 2021 Assessment & Qualifications Virtual Learning English Language Learning Workforce Skills Higher Education Strategic Review Total Courseware Products transferred at a point in time 62 \u2013 109 \u2013 283 180 634 Products and services transferred over time 30 \u2013 26 \u2013 558 17 631 92 \u2013 135 \u2013 841 197 1,265 Assessments Products transferred at a point in time 173 \u2013 6 16 \u2013 \u2013 195 Products and services transferred over time 973 \u2013 72 119 \u2013 \u2013 1,164 1,146 \u2013 78 135 \u2013 \u2013 1,359 Services Products transferred at a point in time \u2013 \u2013 22 \u2013 \u2013 14 36 Products and services transferred over time \u2013 713 3 37 8 7 768 \u2013 713 25 37 8 21 804 Total 1,238 713 238 172 849 218 3,428 3. Revenue from contracts with customers continued All figures in \u00a3 millions 2020 Assessment & Qualifications Virtual Learning English Language Learning Workforce Skills Higher Education Strategic Review Total Courseware Products transferred at a point in time 66 \u2013 106 \u2013 313 185 670 Products and services transferred over time 27 \u2013 24 \u2013 630 15 696 93 \u2013 130 \u2013 943 200 1,366 Assessments Products transferred at a point in time 138 \u2013 3 7 \u2013 \u2013 148 Products and services transferred over time 887 \u2013 61 123 \u2013 \u2013 1,071 1,025 \u2013 64 130 \u2013 \u2013 1,219 Services Products transferred at a point in time \u2013 \u2013 22 \u2013 \u2013 22 44 Products and services transferred over time \u2013 692 2 33 13 28 768 \u2013 692 24 33 13 50 812 Total 1,118 692 218 163 956 250 3,397 a. Nature of goods and services The following is a description of the nature of the Group\u2019s performance obligations within contracts with customers broken down by revenue stream, along with significant judgements and estimates made within each of those revenue streams. Courseware KE Key areas of estimation The level of provisions required for anticipated returns is estimated based on historical experience, customer buying patterns and retailer behaviours including stock levels. Revenue is generated from customers through the sales of print and digital courseware materials to schools, bookstores and direct to individual learners. Goods and services may be sold separately or purchased together in bundled packages. The goods and services included in bundled arrangements are considered distinct performance obligations, except for where Pearson provides both a licence of intellectual property and an ongoing hosting service. As the licence of intellectual property is only available with the concurrent hosting service, the licence is not treated as a distinct performance obligation separate from the hosting service. The transaction price is allocated between distinct performance obligations on the basis of their relative standalone selling prices. In determining the transaction price, variable consideration exists in the form of discounts and anticipated returns. Discounts reduce the transaction price on a given transaction. A provision for anticipated returns is made based primarily on historical return rates, customer buying patterns and retailer behaviours including stock levels (see note 24). If these estimates do not reflect actual returns in future periods then revenues could be understated or overstated for a particular period. Variable consideration as described above is determined using the expected value approach. The sales return liability at the end of 2022 was \u00a353m (2021: \u00a383m; 2020: \u00a386m). This represents 8% of courseware sales transferred at a point in time. While payment for these goods and services generally occurs at the start of these arrangements, the length of time between payment and delivery of the performance obligations is generally short-term in nature or the reason for early payment relates to reasons other than financing, including customers securing a vendor in a longer-term arrangement or the transfer of goods or services is at the discretion of the customer. For these reasons and the use of the practical expedient on short-term financing, significant financing components are not recognised within Courseware transactions. Revenue from the sale of physical books is recognised at a point in time when control passes. This is generally at the point of shipment when title passes to the customer, when the Group has a present right to payment and the significant risks and rewards of ownership have passed to the customer. Revenue from physical books sold through the direct print rental method is recognised over the rental period, as the customer is simultaneously receiving and consuming the benefits of this rental service through the passage of time. Revenue from the sale of digital courseware products is recognised on a straight-line basis over the subscription period, unless hosted by a third-party or representative of a downloadable product, in which case Pearson has no ongoing obligation and recognises revenue when control transfers as the customer is granted access to the digital product. Revenue from the sale of \u2018off-the-shelf\u2019 software is recognised on delivery or on installation of the software where that is a condition of the contract. In certain circumstances, where installation is complex, revenue is recognised when the customer has completed their acceptance procedures. Assessments Revenue is primarily generated from multi-year contractual arrangements related to large-scale assessment delivery, such as contracts to process qualifying tests for individual professions and government departments, and is recognised as performance occurs. Under these arrangements, while the agreement spans multiple years, the contract duration has been determined to be each testing cycle based on contract structure, including clauses regarding termination. While in some cases the customer may have the ability to terminate during the term for convenience, significant financial or qualitative barriers exist limiting the potential for such terminations in the middle of a testing cycle. Within each testing cycle, a variety of service activities are performed such as test administration, delivery, scoring, reporting, item development, operational services and programme management. These services are not treated as distinct in the context of the customer contract as Pearson provides an integrated managed service offering and these activities are accounted for together as one comprehensive performance obligation. Within each testing cycle, the transaction price may contain both fixed and variable amounts. Variable consideration within these transactions primarily relates to expected testing volumes to be delivered in the cycle. The assumptions, risks and uncertainties inherent to long-term contract accounting can affect the amounts and timing of revenue and related expenses reported. Variable consideration is measured using the expected value method, except where amounts are contingent upon a future event\u2019s occurrence, such as performance bonuses. Such event-driven contingency payments are measured using the most likely amount approach. In estimating and constraining variable consideration, historical experience, current trends and local market conditions are considered. To the extent that a higher degree of uncertainty exists regarding variable consideration, these amounts are excluded from the transaction price and recognised when the uncertainty is reasonably removed. Customer payments are generally defined in the contract through a payment schedule, which may require customer acceptance for services rendered. Pearson has a history of providing satisfactory services which are accepted by the customer. While a delay between rendering of services and payment may exist, payment terms are within 12 months and the Group has elected to use the practical expedient available in IFRS 15 \u2018Revenue from Contracts with Customers\u2019 and not identify a significant financing component on these transactions. Revenue is recognised for Assessment contracts over time as the customer is benefiting as performance takes place through a continuous transfer of control to the customer. This continuous transfer of control to the customer is supported by clauses in the contracts which may allow the customer to terminate for convenience, compensate us for work performed to date, and take possession of work in process. As control transfers over time, revenue is recognised based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgement and is based on the nature of the services provided. Revenue is recognised on a percentage of costs basis, calculated using the proportion of the total estimated costs incurred to date. From 2021, the proportion of estimated costs incurred to date was primarily based on historical cost analysis for similar groups of contracts, with regular true-ups to contract costs throughout the contract period. Previously, the proportion of estimated costs incurred to date was based on individual contract analysis. The change in input methodology did not result in a material impact on revenue recognition. Percentage of completion is used to recognise the transfer of control of services provided as these services are not provided evenly throughout the testing cycle and involve varying degrees of effort during the contract term. Losses on contracts are recognised in the period in which the loss first becomes foreseeable. Contract losses are determined to be the amount by which estimated total costs of the contract exceed the estimated total revenues that will be generated. In Assessments contracts driven primarily by transactions directly to end users, Pearson\u2019s main obligation to the customer involves test delivery and scoring. Test delivery and scoring are defined as a single performance obligation delivered over time whether the test is subsequently manually scored or digitally scored on the day of the assessment. Customers may also purchase print and digital supplemental materials. Print products in this revenue stream are recognised at a point in time when control passes to the customer upon shipment. Recognition of digital revenue will occur based on the extent of Pearson\u2019s ongoing hosting obligation. 3. Revenue from contracts with customers continued Services Revenue is primarily generated from multi-year contractual arrangements related to large-scale educational service delivery to academic institutions, such as schools and higher education universities. Under these arrangements, while an agreement may span multiple years, the contract duration has been determined to be each academic period based on the structure of contracts, including clauses regarding termination. While in some cases the customer may have the ability to terminate during the term for convenience, significant financial or qualitative barriers exist limiting the potential for such terminations in the middle of an academic period. The academic period for this customer base is normally an academic year for schools and a semester for higher education universities. Within each academic period, a variety of services are provided such as programme development, student acquisition, education technology and student support services. These services are not distinct in the context of the customer contract as Pearson provides an integrated managed service offering and these activities are accounted for together as a comprehensive performance obligation. Where Services are provided to university customers, volume and transaction price are fixed at the start of the semester. Where Services are provided to school customers, the transaction price may contain both fixed and variable amounts which require estimation during the academic period. Estimation is required where consideration is based upon average enrolments or other metrics which are not known at the start of the academic year. Variable consideration is measured using the expected value method. Historical experience, current trends, local circumstances and customer-specific funding formulas are considered in estimating and constraining variable consideration. To the extent that a higher degree of uncertainty exists regarding variable consideration, these amounts are excluded from the transaction price and recognised when the uncertainty is reasonably removed. Customer payments are generally defined in the contract as occurring shortly after invoicing. Where there is a longer payment term offered to a customer through a payment schedule, payment terms are within 12 months and the Group has elected to use the practical expedient available in IFRS 15 and not identify a significant financing component on these transactions. Revenue is recognised for Service contracts over time as the customer is benefiting as performance takes place through a continuous transfer of control to the customer. This continuous transfer of control to the customer is supported by clauses in the contracts which may allow the customer to terminate for convenience, compensate for work performed to date, and take possession of work in process. As control transfers over time, revenue is recognised based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgement and is based on the nature of the products or services provided. Within the comprehensive service obligation, the timing of services occurs relatively evenly over each academic period and, as such, time elapsed is used to recognise the transfer of control to the customer on a straight-line basis. Losses on contracts are recognised in the period in which the loss first becomes foreseeable. Contract losses are determined to be the amount by which estimated total costs of the contract exceed the estimated total revenues that will be generated. In cases of optional or add-on purchases, institutions may purchase physical goods priced at their standalone value, which are accounted for separately and recognised at the point in time when control passes to the customer upon shipment. b. Disaggregation of revenue The tables in notes 2 and 3 show revenue from contracts with customers disaggregated by operating segment, geography and revenue stream. These disaggregation categories are appropriate as they represent the key groupings used in managing and evaluating underlying performance of each of the businesses. The categories also reflect groups of similar types of transactional characteristics, among similar customers, with similar accounting conclusions. c. Contract balances Transactions within the Courseware revenue stream generally entail customer billings at or near the contract\u2019s inception and accordingly Courseware deferred income balances are primarily related to subscription performance obligations to be delivered over time. Transactions within the Assessments and Services revenue streams generally entail customer billings over time based on periodic intervals, progress towards milestones or enrolment census dates. As the performance obligations within these arrangements are delivered over time, the extent of accrued income or deferred income will ultimately depend upon the difference between revenue recognised and billings to date. Refer to note 22 for opening and closing balances of accrued income. Refer to note 24 for opening and closing balances of deferred income. Revenue recognised during the period from changes in deferred income was driven primarily by the release of revenue over time from digital subscriptions. d. Contract costs The Group capitalises incremental costs to obtain contracts with customers where it is expected these costs will be recoverable. Incremental costs to obtain contracts with customers are considered those which would not have been incurred if the contract had not been obtained. For the Group, these costs relate primarily to sales commissions. The Group has elected to use the practical expedient as allowable by IFRS 15 whereby such costs will be expensed as incurred where the expected amortisation period is one year or less. Where the amortisation period is greater than one year, these costs are amortised over the contract term on a systematic basis consistent with the transfer of the underlying goods and services within the contract to which these costs relate, which will generally be on a rateable basis. The Group does not recognise any material costs to fulfil contracts with customers as these types of activities are governed by other accounting standards. There were no deferred contract costs in 2022, 2021 or 2020. e. Remaining transaction price The below table depicts the remaining transaction price on unsatisfied or partially unsatisfied performance obligations from contracts with customers. All figures in \u00a3 millions 2022 Sales Deferred income Committed sales Total remaining transaction price 2023 2024 2025 and later Courseware Products transferred at a point in time 626 1 \u2013 1 1 \u2013 \u2013 Products and services transferred over time 640 95 \u2013 95 56 14 25 Assessments Products transferred at a point in time 188 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Products and services transferred over time 1,470 262 472 734 524 206 4 Services Products transferred at a point in time 29 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Products and services transferred over time \u2013 subscriptions 351 20 7 27 27 \u2013 \u2013 Products and services transferred over time \u2013 other ongoing performance obligations 537 22 225 247 247 \u2013 \u2013 Total 3,841 400 704 1,104 855 220 29 3. Revenue from contracts with customers continued All figures in \u00a3 millions 2021 Sales Deferred income Committed sales Total remaining transaction price 2022 2023 2024 and later Courseware Products transferred at a point in time 634 1 \u2013 1 1 \u2013 \u2013 Products and services transferred over time 631 93 \u2013 93 60 11 22 Assessments Products transferred at a point in time 195 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Products and services transferred over time 1,164 255 442 697 503 191 3 Services Products transferred at a point in time 36 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Products and services transferred over time \u2013 subscriptions 290 13 10 23 23 \u2013 \u2013 Products and services transferred over time \u2013 other ongoing performance obligations 478 24 220 244 244 \u2013 \u2013 Total 3,428 386 672 1,058 831 202 25 All figures in \u00a3 millions 2020 Sales Deferred income Committed sales Total remaining transaction price 2021 2022 2023 and later Courseware Products transferred at a point in time 670 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Products and services transferred over time 696 105 14 119 84 14 21 Assessments Products transferred at a point in time 148 1 \u2013 1 1 \u2013 \u2013 Products and services transferred over time 1,071 217 413 630 426 203 1 Services Products transferred at a point in time 44 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Products and services transferred over time \u2013 subscriptions 323 18 10 28 27 1 \u2013 Products and services transferred over time \u2013 other ongoing performance obligations 445 18 195 213 213 \u2013 \u2013 Total 3,397 359 632 991 751 218 22 Committed sales amounts are equal to the transaction price from contracts with customers, excluding those amounts previously recognised as revenue and amounts currently recognised in deferred income. The total of committed sales and deferred income is equal to the remaining transaction price. Time bands stated above represent the expected timing of when the remaining transaction price will be recognised as revenue. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRevenueExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-727": {
"value": "4. Operating expenses All figures in \u00a3 millions 2022 2021 2020 By function: Cost of goods sold 2,046 1,747 1,767 Operating expenses Distribution costs 61 62 59 Selling, marketing and product development costs 564 521 572 Administrative and other expenses 823 802 816 Restructuring costs 150 214 \u2013 Other income (49) (37) (45) Total net operating expenses 1,549 1,562 1,402 Other net gains and losses (24) (63) (178) Total 3,571 3,246 2,991 Other income includes freight income and sublet income. Included in administrative and other expenses are research and efficacy costs of \u00a310m (2021: \u00a312m; 2020: \u00a311m). Other net gains in 2022, largely relate to the gain on the sales of certain businesses (see note 31) and a gain arising on a decrease in the deferred consideration payable on prior year acquisitions, offset by costs related to disposals and acquisitions. In 2021, other net gains and losses largely relate to the sale of interests in PIHE in South Africa and the school business in Brazil. In 2020, other net gains and losses largely relate to the sale of the remaining interest in Pearson Random House (\u00a3180m gain). In August 2022, the Group announced a major restructuring programme to run in 2022. The programme includes efficiencies in product and content, support costs, technology and corporate property. The restructuring costs in 2022 of \u00a3150m mainly relate to severance and impairment of right-of-use property assets. In March 2021, the Group announced a major restructuring programme to run in 2021, principally comprising the reorganisation of the Group into five global business divisions and the simplification of the Group\u2019s property portfolio. The costs of these programmes have been excluded from adjusted operating profit so as to better highlight the underlying performance (see note 8). An analysis of major restructuring costs are as follows: All figures in \u00a3 millions 2022 2021 2020 By nature: Product costs 11 19 \u2013 Employee costs 73 32 \u2013 Depreciation and impairment of non-current assets 51 145 \u2013 Property and facilities 7 11 \u2013 Technology and communications 1 3 \u2013 Professional and outsourced services 7 4 \u2013 Total restructuring \u2013 operating expenses 150 214 \u2013 4. Operating expenses continued All figures in \u00a3 millions Notes 2022 2021 2020 By nature: Royalties expensed 194 185 191 Other product costs 412 353 349 Employee benefit expense 5 1,605 1,365 1,337 Contract labour 73 69 67 Employee-related expense 52 21 30 Promotional costs 268 239 233 Depreciation and impairment of property, plant and equipment and investment property 10 136 241 125 Amortisation and impairment of intangible assets \u2013 product development 20 303 279 280 Amortisation and impairment of intangible assets \u2013 software 11 125 117 112 Amortisation and impairment of intangible assets \u2013 other 11 54 50 80 Property and facilities 102 124 85 Technology and communications 221 215 216 Professional and outsourced services 501 477 498 Other general and administrative costs 76 58 71 Costs capitalised (478) (447) (460) Other net gains and losses (24) (63) (178) Other income (49) (37) (45) Total 3,571 3,246 2,991 During the year the Group obtained the following services from the Group\u2019s auditors, which changed to EY in 2022 and was PwC in 2021 and 2020: All figures in \u00a3 millions 2022 2021 2020 The audit of parent company and consolidated financial statements 6 5 5 The audit of the company\u2019s subsidiaries 1 2 2 Total audit fees 7 7 7 Audit-related and other assurance services \u2013 \u2013 \u2013 Other non-audit services \u2013 \u2013 \u2013 Total other services \u2013 \u2013 \u2013 Total non-audit services \u2013 \u2013 \u2013 Total 7 7 7 Reconciliation between audit and non-audit service fees is shown below: All figures in \u00a3 millions 2022 2021 2020 Group audit fees including fees for attestation under section 404 of the Sarbanes-Oxley Act 7 7 7 Non-audit fees \u2013 \u2013 \u2013 Total 7 7 7 Fees for attestation under section 404 of the Sarbanes-Oxley Act are allocated between fees payable for the audits of consolidated and subsidiary accounts. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfExpensesExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-728": {
"value": "5. Employee information All figures in \u00a3 millions Notes 2022 2021 2020 Employee benefit expense Wages and salaries (including termination costs) 1,382 1,180 1,152 Social security costs 113 95 96 Share-based payment costs 26 35 28 29 Retirement benefits \u2013 defined contribution plans 25 46 37 47 Retirement benefits \u2013 defined benefit plans 25 29 25 13 Total 1,605 1,365 1,337 An additional \u00a33m of share-based payment costs (2021: \u00a3nil; 2020: \u00a3nil) in respect of remuneration for post-acquisition services for recent acquisitions is included in other net gains and losses in the income statement. The details of the emoluments of the Directors of Pearson plc are shown in the report on Directors\u2019 remuneration. Average number employed 2022 2021 2020 Employee numbers UK 3,244 3,395 3,304 Other European countries 809 878 886 US 11,357 11,757 11,432 Canada 522 593 648 Asia Pacific 3,369 2,738 2,812 Other countries 1,137 1,383 2,109 Total 20,438 20,744 21,191 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInformationAboutEmployeesExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-790": {
"value": "6. Net finance costs All figures in \u00a3 millions Notes 2022 2021 1 20201 Interest payable on financial liabilities at amortised cost and associated derivatives (32) (30) (31) Interest on lease liabilities (25) (27) (41) Net foreign exchange losses \u2013 \u2013 (6) Interest on deferred and contingent consideration (5) \u2013 \u2013 Interest on tax provisions (7) (11) (7) Derivatives not in a hedge relationship (2) \u2013 (22) Finance costs (71) (68) (107) Interest receivable on financial assets at amortised cost 18 5 9 Interest on lease receivables 5 6 9 Net finance income in respect of retirement benefits 25 9 4 6 Fair value remeasurement of disposal proceeds \u2013 6 26 Fair value movements on investments held at fair value 28 20 26 Net foreign exchange gains 1 1 \u2013 Interest on tax provisions 35 \u2013 \u2013 Derivatives not in a hedge relationship 27 20 \u2013 Finance income 123 62 76 Net finance income/(costs) 52 (6) (31) Analysed as: Net interest payable reflected in adjusted earnings (1) (57) (61) Other net finance income 53 51 30 Net finance income/(costs) 52 (6) (31) 1. Comparative balances have been restated \u2013 see Note 1b. Net movement in the fair value of hedges is further explained in note 16. Derivatives not in a hedge relationship include fair value movements in the interest rate and cross-currency interest rate swaps. For further information on adjusted measures above, see note 8. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceCostExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-774": {
"value": "6. Net finance costs All figures in \u00a3 millions Notes 2022 2021 1 20201 Interest payable on financial liabilities at amortised cost and associated derivatives (32) (30) (31) Interest on lease liabilities (25) (27) (41) Net foreign exchange losses \u2013 \u2013 (6) Interest on deferred and contingent consideration (5) \u2013 \u2013 Interest on tax provisions (7) (11) (7) Derivatives not in a hedge relationship (2) \u2013 (22) Finance costs (71) (68) (107) Interest receivable on financial assets at amortised cost 18 5 9 Interest on lease receivables 5 6 9 Net finance income in respect of retirement benefits 25 9 4 6 Fair value remeasurement of disposal proceeds \u2013 6 26 Fair value movements on investments held at fair value 28 20 26 Net foreign exchange gains 1 1 \u2013 Interest on tax provisions 35 \u2013 \u2013 Derivatives not in a hedge relationship 27 20 \u2013 Finance income 123 62 76 Net finance income/(costs) 52 (6) (31) Analysed as: Net interest payable reflected in adjusted earnings (1) (57) (61) Other net finance income 53 51 30 Net finance income/(costs) 52 (6) (31) 1. Comparative balances have been restated \u2013 see Note 1b. Net movement in the fair value of hedges is further explained in note 16. Derivatives not in a hedge relationship include fair value movements in the interest rate and cross-currency interest rate swaps. For further information on adjusted measures above, see note 8. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-729": {
"value": "6. Net finance costs All figures in \u00a3 millions Notes 2022 2021 1 20201 Interest payable on financial liabilities at amortised cost and associated derivatives (32) (30) (31) Interest on lease liabilities (25) (27) (41) Net foreign exchange losses \u2013 \u2013 (6) Interest on deferred and contingent consideration (5) \u2013 \u2013 Interest on tax provisions (7) (11) (7) Derivatives not in a hedge relationship (2) \u2013 (22) Finance costs (71) (68) (107) Interest receivable on financial assets at amortised cost 18 5 9 Interest on lease receivables 5 6 9 Net finance income in respect of retirement benefits 25 9 4 6 Fair value remeasurement of disposal proceeds \u2013 6 26 Fair value movements on investments held at fair value 28 20 26 Net foreign exchange gains 1 1 \u2013 Interest on tax provisions 35 \u2013 \u2013 Derivatives not in a hedge relationship 27 20 \u2013 Finance income 123 62 76 Net finance income/(costs) 52 (6) (31) Analysed as: Net interest payable reflected in adjusted earnings (1) (57) (61) Other net finance income 53 51 30 Net finance income/(costs) 52 (6) (31) 1. Comparative balances have been restated \u2013 see Note 1b. Net movement in the fair value of hedges is further explained in note 16. Derivatives not in a hedge relationship include fair value movements in the interest rate and cross-currency interest rate swaps. For further information on adjusted measures above, see note 8. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-730": {
"value": "7. Income tax All figures in \u00a3 millions Notes 2022 20211 20201 Current tax Charge in respect of current year (127) (103) (18) Adjustments in respect of prior years 18 (12) 4 Total current tax charge (109) (115) (14) Deferred tax In respect of temporary differences 29 103 (34) Other adjustments in respect of prior years 1 13 (2) Total deferred tax credit/(charge) 13 30 116 (36) Total tax (charge)/credit (79) 1 (50) 1. Comparative balances have been restated \u2013 see Note 1b. The adjustments in respect of prior years in 2022 is primarily due to movements in provisions for tax uncertainties, whilst in 2021 and 2020 the differences primarily arise from revising the previous year\u2019s reported tax provision to reflect the tax returns subsequently filed. This results in a change between deferred and current tax as well as an absolute benefit to the total tax charge. The tax on the Group\u2019s profit before tax differs from the theoretical amount that would arise using the UK tax rate as follows: All figures in \u00a3 millions 2022 2021 2020 Profit before tax 323 177 380 Tax calculated at UK rate (2022: 19%; 2021: 19%; 2020: 19%) (62) (34) (72) Effect of overseas tax rates (12) (24) (7) Effect of UK rate change 3 25 (5) Joint venture and associate income reported net of tax \u2013 \u2013 1 Intra-group financing benefit \u2013 7 14 Net expense not subject to tax (9) (9) (7) Gains and losses on sale of businesses not subject to tax 2 4 21 Unrecognised tax losses 3 9 (21) Benefit from changes in local tax law \u2013 11 \u2013 Benefit from US accounting method changes \u2013 11 \u2013 Movement in provisions for tax uncertainties - current year (23) \u2013 24 Adjustments in respect of prior years - movement in provisions for tax uncertainties 13 \u2013 \u2013 Adjustments in respect of prior years - other 6 1 2 Total tax (charge)/credit (79) 1 (50) UK (41) 27 23 Overseas (38) (26) (73) Total tax (charge)/credit (79) 1 (50) Tax rate reflected in earnings 24.5% (0.6)% 13.2% 1. Comparative balances have been restated \u2013 see Note 1b. KJ Key judgements The application of tax legislation in relation to provisions for uncertain tax positions. KE Key areas of estimation The level of provisions required in relation to uncertain tax positions is complex and each matter is separately assessed. The estimation of future settlement amounts is based on a number of factors including the status of the unresolved matter, clarity of legislation, range of possible outcomes and the statute of limitations. Included in net expense not subject to tax are foreign taxes not creditable, the tax impact of share-based payments and other expenses not deductible. Factors which may affect future tax charges include changes in tax legislation, transfer pricing regulations, the level and mix of profitability in different countries, and settlements with tax authorities. The movement in provisions for tax uncertainties primarily reflects releases due to the expiry of relevant statutes of limitation, settlement of certain audits and the establishment of provisions for new uncertain tax positions, primarily the potential State Aid exposure offset against the release of US provisions following the expiry of the statute of limitations for certain periods. The current tax liability of \u00a343m (2021: \u00a3125m; 2020: \u00a384m) includes \u00a328m (2021: \u00a3104m; 2020: \u00a3104m) of provisions for tax uncertainties principally in respect of several matters in the US and the UK. The Group is currently under audit in several countries, and the timing of any resolution of these audits is uncertain. In most countries, tax years up to and including 2017 are now statute barred from examination by tax authorities, however, a balance of \u00a33m relates to certain remaining open issues. Of the remaining \u00a325m balance, \u00a31m relates to 2018, \u00a314m to 2019, \u00a35m to 2020, \u00a33m to 2021 and \u00a32m to 2022. The tax authorities may take a different view from management and the final liability may be greater than provided. The matters provided for include a provision of \u00a363m related to the potential State Aid exposure and the potential disallowance of intra-group charges. In relation to the potential State Aid exposure, a payment has been made in relation to the maximum potential exposure with the provision of \u00a363m offset against this resulting in a \u00a341m non-current tax debtor. Contingent liabilities relating to tax are disclosed in note 34. The tax rate reflected in adjusted earnings is calculated as follows: All figures in \u00a3 millions 2022 2021 2020 Profit before tax 323 177 380 Adjustments: Cost of major restructuring 150 214 \u2013 Other net gains and losses (24) (63) (178) Intangible charges 56 51 80 UK Pension discretionary increases 3 \u2013 \u2013 Other net finance income (53) (51) (30) Adjusted profit before tax 455 328 252 Total tax credit/(charge) (79) 1 (50) Adjustments: Tax benefit on cost of major restructuring (37) (47) \u2013 Tax charge on other net gains and losses 10 14 3 Tax benefit on intangible charges (11) (12) (22) Tax benefit on UK pensions discretionary increases (1) \u2013 \u2013 Tax charge on other net finance costs 13 8 10 Tax amortisation benefit on goodwill and intangibles 16 8 24 Benefit from changes in local tax law \u2013 (11) \u2013 Tax benefit on UK tax rate change (1) (25) \u2013 Other tax items 19 \u2013 \u2013 Adjusted tax charge (71) (64) (35) Tax rate reflected in adjusted earnings 15.6% 19.5% 13.7% 1. Comparative balances have been restated \u2013 see Note 1b. For further information on adjusted measures above, see note 8. The tax benefit/(charge) recognised in other comprehensive income is as follows: All figures in \u00a3 millions 2022 2021 2020 Net exchange differences on translation of foreign operations 4 10 (13) Fair value gain on other financial assets 1 (1) \u2013 Remeasurement of retirement benefit obligations (12) (61) 2 (7) (52) (11) 1. Comparative balances have been restated \u2013 see Note 1b. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-731": {
"value": "8. Earnings per share Basic earnings per share is calculated by dividing the profit or loss attributable to equity shareholders of the company (earnings) by the weighted average number of ordinary shares in issue during the year, excluding ordinary shares purchased by the company and held as treasury shares. Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares to take account of all dilutive potential ordinary shares and adjusting the profit attributable, if applicable, to account for any tax consequences that might arise from conversion of those shares. Certain contingently issuable shares vested on 31 December 2022 but have not yet been issued, these shares are considered dilutive for 2022 but do not materially impact basic EPS. All figures in \u00a3 millions 2022 2021 1 20201 Earnings for the year 244 178 330 Non-controlling interest (2) (1) \u2013 Earnings attributable to equity shareholders 242 177 330 Weighted average number of shares (millions) 738.1 754.1 755.4 Effect of dilutive share options (millions) 3.9 5.0 \u2013 Weighted average number of shares (millions) for diluted earnings 742.0 759.1 755.4 Earnings per share (in pence per share) Basic 32.8p 23.5p 43.7p Diluted 32.6p 23.3p 43.7p 1. Comparative balances have been restated \u2013 see Note 1b. Adjusted For additional detailed information on the calculation of adjusted measures, see pages 215-219 (Financial key performance indicators). See note 2 for details of specific items excluded from or included in adjusted operating profit in 2022, 2021 and 2020. In order to show results from operating activities on a consistent basis, an adjusted earnings per share is presented. The Group\u2019s definition of adjusted earnings per share may not be comparable with other similarly titled measures reported by other companies. Adjusted earnings is a non-GAAP (non-statutory) financial measure and is included as it is a key financial measure used by management to evaluate the performance of the Group. The measure also enables investors to more easily, and consistently, track the underlying operational performance of the Group and its business segments over time by separating out those items of income and expenditure relating to acquisition and disposal transactions, major restructuring programmes and certain other items that are also not representative of underlying performance. Adjusted earnings per share is calculated as adjusted earnings divided by the weighted average number of shares in issue on an undiluted basis. The following items are excluded from or included in adjusted earnings: Cost of major restructuring \u2013 In August 2022, the Group announced a major restructuring programme to run in 2022. The programme includes efficiencies in product and content, support costs, technology and corporate property. The restructuring costs in 2022 of \u00a3150m mainly relate to staff redundancies and impairment of right-of-use property assets. The 2022 charge includes the impact of updated assumptions related to the recoverability of right-of-use assets made in 2021. In 2021, restructuring costs of \u00a3214m mainly related to the impairment of right-of-use property assets, the write-down of product development assets and staff redundancies. The costs of these restructuring programmes are significant enough to exclude from the adjusted operating profit measure so as to better highlight the underlying performance (see note 4). There was no major restructuring in 2020. Intangible charges \u2013 These represent charges relating to intangibles acquired through business combinations. These charges are excluded as they reflect past acquisition activity and do not necessarily reflect the current year performance of the Group. Intangible amortisation charges in 2022 were \u00a356m compared to a charge of \u00a351m in 2021. This is due to increased amortisation from recent acquisitions which is partially offset by a reduction in amortisation from intangible assets at the end of their useful life and recent disposals. In 2022 and 2021, intangible charges included no impairment charges. In 2020, intangible charges were \u00a380m including impairment charges of \u00a312m. Other net gains and losses \u2013 These represent profits and losses on the sale of subsidiaries, joint ventures, associates and other financial assets and are excluded from adjusted operating profit as they distort the performance of the Group as reported on a statutory basis. Other net gains and losses also includes costs related to business closures and acquisitions. Other net gains and losses in 2022 relate to the gains on the disposal of our international courseware local publishing businesses in Europe, French-speaking Canada and Hong Kong and a gain arising on a decrease in the deferred consideration payable on prior year acquisitions, offset by a loss on disposal of our international courseware local publishing businesses in South Africa due to recycling of currency translation adjustments and costs related to disposals and acquisitions. Other net gains and losses in 2021 largely related to the disposal of PIHE and the disposal of the K12 Sistemas business in Brazil offset by costs related to the acquisition of Faethm and the wind down of certain strategic review businesses. In 2020, they largely relate to the sale of the remaining interest in Penguin Random House (\u00a3180m gain). UK pension discretionary increases - Charges in 2022 relate to one-off pension increases awarded to certain cohorts of pensioners in response to the cost of living crisis. Other net finance income/costs \u2013 These include finance costs in respect of retirement benefits, finance costs relating to acquisition and disposal transactions, fair value movements on investments classified as fair value through profit and loss, foreign exchange and other gains and losses on derivatives. Net finance income relating to retirement benefits is excluded as management does not believe that the consolidated income statement presentation under IAS 19 reflects the economic substance of the underlying assets and liabilities. Finance costs relating to acquisition or disposal transactions are excluded from adjusted earnings as they are considered part of the acquisition cost or disposal proceeds rather than being reflective of the underlying financing costs of the Group. Foreign exchange, fair value movements and other gains and losses are excluded from adjusted earnings as they represent short-term fluctuations in market value and are subject to significant volatility. Other gains and losses may not be realised in due course as it is normally the intention to hold the related instruments to maturity. Tax \u2013 Tax on the above items is excluded from adjusted earnings. Where relevant, the Group also excludes the benefit from recognising previously unrecognised pre-acquisition and capital losses. The tax benefit from tax deductible goodwill and intangibles is added to the adjusted income tax charge as this benefit more accurately aligns the adjusted tax charge with the expected rate of cash tax payments. In addition, one off items such as the impact of the UK tax rate change and changes in local tax law have been excluded. Non-controlling interest \u2013 Non-controlling interest for the above items is excluded from adjusted earnings. The adjusted earnings per share includes both continuing and discontinued businesses on an undiluted basis when relevant. The Group\u2019s definition of adjusted earnings per share may not be comparable to other similarly titled measures reported by other companies. The following tables reconcile the statutory income statement to the adjusted income statement. All figures in \u00a3 millions 2022 Statutory income statement Cost of major restructuring Other net gains and losses Intangible charges UK Pension discretionary increases Other net finance income/ costs Other tax items Adjusted income statement Operating profit 271 150 (24) 56 3 \u2013 \u2013 456 Net finance costs 52 \u2013 \u2013 \u2013 \u2013 (53) \u2013 (1) Profit before tax 323 150 (24) 56 3 (53) \u2013 455 Income tax (79) (37) 10 (11) (1) 13 34 (71) Profit for the year 244 113 (14) 45 2 (40) 34 384 Non-controlling interest (2) \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 (2) Earnings 242 113 (14) 45 2 (40) 34 382 Weighted average number of shares (millions) 738.1 738.1 Weighted average number of shares (millions) for diluted earnings 742.0 742.0 Earnings per share (basic) 32.8p 51.8p Earnings per share (diluted) 32.6p 51.5p All figures in \u00a3 millions 2021 Statutory income statement1 Cost of major restructuring Other net gains and losses Intangible charges UK Pension discretionary increases Other net finance income/ costs1 Other tax items Adjusted income statement Operating profit 183 214 (63) 51 \u2013 \u2013 \u2013 385 Net finance costs (6) \u2013 \u2013 \u2013 \u2013 (51) \u2013 (57) Profit before tax 177 214 (63) 51 \u2013 (51) \u2013 328 Income tax 1 (47) 14 (12) \u2013 8 (28) (64) Profit for the year 178 167 (49) 39 \u2013 (43) (28) 264 Non-controlling interest (1) \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 (1) Earnings 177 167 (49) 39 \u2013 (43) (28) 263 Weighted average number of shares (millions) 754.1 754.1 Weighted average number of shares (millions) for diluted earnings 759.1 759.1 Earnings per share (basic) 23.5p 34.9p Earnings per share (diluted) 23.3p 34.6p 1. Comparative balances have been restated \u2013 see Note 1b. 8. Earnings per share continued All figures in \u00a3 millions 2020 Statutory income statement1 Cost of major restructuring Other net gains and losses Intangible charges UK Pensions discretionary increases Other net finance income/ costs1 Other tax items Adjusted income statement Operating profit 411 \u2013 (178) 80 \u2013 \u2013 \u2013 313 Net finance costs (31) \u2013 \u2013 \u2013 \u2013 (30) \u2013 (61) Profit before tax 380 \u2013 (178) 80 \u2013 (30) \u2013 252 Income tax (50) \u2013 3 (22) \u2013 10 24 (35) Profit for the year 330 \u2013 (175) 58 \u2013 (20) 24 217 Non-controlling interest \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Earnings 330 \u2013 (175) 58 \u2013 (20) 24 217 Weighted average number of shares (millions) 755.4 755.4 Weighted average number of shares (millions) for diluted earnings 755.4 755.4 Earnings per share (basic) 43.7p 28.7p Earnings per share (diluted) 43.7p 28.7p 1. Comparative balances have been restated \u2013 see Note 1b. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-732": {
"value": "9. Dividends All figures in \u00a3 millions 2022 2021 2020 Final paid in respect of prior year 14.2p (2020: 13.5p; 2021: 13.5p) 107 102 101 Interim paid in respect of current year 6.6p (2020: 6.0p; 2021: 6.3p) 49 47 45 156 149 146 The Directors are proposing a final dividend in respect of the financial year ended 31 December 2022 of 14.9p per equity share which will absorb an estimated \u00a3107m of shareholders\u2019 funds. It will be paid on 5 May 2023 to shareholders who are on the register of members on 24 March 2023. These financial statements do not reflect this dividend. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDividendsExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-733": {
"value": "10. Property, plant and equipment and investment property All figures in \u00a3 millions Investment property Right-of-use assets Owned assets Total Land and buildings Plant and equipment Land and buildings Plant and equipment Assets in the course of construction Cost At 1 January 2021 \u2013 439 12 296 308 21 1,076 Exchange differences \u2013 \u2013 \u2013 2 (3) \u2013 (1) Additions \u2013 32 \u2013 8 17 39 96 Disposals and retirements \u2013 (6) (7) (100) (72) \u2013 (185) Reclassifications and transfers \u2013 \u2013 \u2013 35 \u2013 (31) 4 Transfer to assets classified as held for sale \u2013 \u2013 \u2013 (15) \u2013 \u2013 (15) At 31 December 2021 \u2013 465 5 226 250 29 975 Exchange differences \u2013 30 \u2013 18 23 \u2013 71 Additions 22 33 1 4 8 33 101 Transfers to investment property 174 (141) \u2013 (32) (1) \u2013 \u2013 Disposals of businesses (note 31) \u2013 (10) \u2013 (1) (8) \u2013 (19) Disposals and retirements (6) (23) (1) (5) (39) \u2013 (74) Reclassifications and transfers \u2013 \u2013 \u2013 13 27 (40) \u2013 Transfer to assets classified as held for sale \u2013 \u2013 \u2013 (45) (3) \u2013 (48) At 31 December 2022 190 354 5 178 257 22 1,006 All figures in \u00a3 millions Investment property Right-of-use assets Owned assets Total Land and buildings Plant and equipment Land and buildings Plant and equipment Assets in the course of construction Depreciation and impairment At 1 January 2021 \u2013 (110) (9) (199) (243) \u2013 (561) Exchange differences \u2013 (1) 1 (1) 1 \u2013 \u2013 Charge for the year \u2013 (46) (3) (16) (30) \u2013 (95) Disposals and retirements \u2013 7 6 99 71 \u2013 183 Reclassifications and transfers \u2013 \u2013 \u2013 (5) 7 \u2013 2 Impairment \u2013 (119) \u2013 (22) (5) \u2013 (146) Transfer to assets classified as held for sale \u2013 \u2013 \u2013 8 \u2013 \u2013 8 At 31 December 2021 \u2013 (269) (5) (136) (199) \u2013 (609) Exchange differences \u2013 (17) \u2013 (14) (18) \u2013 (49) Transfers to investment property (105) 101 \u2013 3 1 \u2013 \u2013 Charge for the year (6) (44) (1) (13) (26) \u2013 (90) Disposals of businesses (note 31) \u2013 2 \u2013 1 5 \u2013 8 Disposals and retirements \u2013 13 1 5 39 \u2013 58 Reclassifications and transfers \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Impairment (19) (15) \u2013 (9) (3) \u2013 (46) Transfer to assets classified as held for sale \u2013 \u2013 \u2013 30 2 \u2013 32 At 31 December 2022 (130) (229) (5) (133) (199) \u2013 (696) Carrying amounts At 1 January 2021 \u2013 329 3 97 65 21 515 At 31 December 2021 \u2013 196 \u2013 90 51 29 366 At 31 December 2022 60 125 \u2013 45 58 22 310 KE Key areas of estimation The recoverability of right-of-use assets and in particular assumptions related to the ability to sublease vacant leased assets in the future. Depreciation expense of \u00a345m (2021: \u00a340m; 2020: \u00a344m) has been included in the income statement in cost of goods sold and \u00a345m (2021: \u00a355m; 2020: \u00a381m) in operating expenses. The impairment charge of \u00a346m (2021: \u00a3146m; 2020: \u00a3nil) has been included within operating expenses within the income statement. Property, plant and equipment (including investment property) assets are assessed for impairment triggers annually or when triggering events occur. In 2022, similar to 2021, as part of a major restructuring programme, the Group continued to simplify its property portfolio, reducing the overall office space required. All property related assets were assessed for impairment as a result of this triggering event and impairment charges of \u00a346m (2021: \u00a3141m) have been recognised within costs of major restructuring (see note 4 for details). The recoverability of certain of the Group\u2019s right-of-use assets is now based on the Group\u2019s ability to sublease vacant space. This involves the use of assumptions related to future subleases including the achievable rent, lease start dates, lease incentives such as rent free periods and the discount rate applied. Should the future sublease outcomes be more or less favourable than the assumptions used by management this could result in additional impairment charges or reversals of impairment charges. Investment property Buildings, or portions of buildings, that are no longer occupied by the Group and are held for operating lease rental are classified as investment property. Investment property includes both, right-of-use assets and owned assets. The Group recognised rental income of \u00a33m (2021: \u00a3nil; 2020 \u00a3nil) in relation to properties classified as investment property. Investment property is measured using the cost model. As a result of recent impairments, the fair value of investment property is equal to the carrying value. The fair value of investment property has been determined using a discounted cash flow model. The valuation model is internally generated but uses inputs from external, independent property valuers, having appropriate recognised professional qualifications and recent experience in the location and category of the property being valued. The valuations require the application of judgement and involve the use of known inputs for existing contracted subleases as well as assumptions related to future potential subleases including the achievable rent, lease start dates, lease incentives such as rent free periods and the discount rate applied. The fair value measurement of investment properties has been classified as level 3 within the fair value hierarchy based on the inputs and valuation technique used. Should the future sublease outcomes be more or less favourable than the assumptions used by management this could result in additional impairment charges or reversals of impairment charges. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-791": {
"value": "11. Intangible assets All figures in \u00a3 millions Goodwill Software Acquired customer lists, contracts and relationships Acquired trademarks and brands Acquired publishing rights Other intangibles acquired Total Cost At 1 January 2021 2,094 1,104 751 198 97 349 4,593 Exchange differences 8 5 4 (2) \u2013 (2) 13 Additions \u2013 internal development \u2013 110 \u2013 \u2013 \u2013 \u2013 110 Additions \u2013 purchased \u2013 2 \u2013 \u2013 \u2013 \u2013 2 Disposals and retirements \u2013 (135) \u2013 (25) \u2013 (43) (203) Acquisition of subsidiary (note 30) 43 \u2013 \u2013 \u2013 \u2013 27 70 Disposal of subsidiary (note 31) \u2013 \u2013 (14) (3) \u2013 (10) (27) Transfers \u2013 1 \u2013 \u2013 \u2013 \u2013 1 At 31 December 2021 2,145 1,087 741 168 97 321 4,559 Exchange differences 206 83 80 20 5 44 438 Additions \u2013 internal development \u2013 86 \u2013 \u2013 \u2013 \u2013 86 Additions \u2013 purchased \u2013 4 \u2013 \u2013 \u2013 \u2013 4 Disposals and retirements \u2013 (131) \u2013 \u2013 \u2013 \u2013 (131) Acquisition of subsidiary (note 30) 204 \u2013 37 6 1 66 314 Disposal of subsidiary (note 31) (75) (9) (20) (8) \u2013 (1) (113) Transfers \u2013 (5) \u2013 \u2013 \u2013 \u2013 (5) At 31 December 2022 2.480 1,115 838 186 103 430 5,152 All figures in \u00a3 millions Goodwill Software Acquired customer lists, contracts and relationships Acquired trademarks and brands Acquired publishing rights Other intangibles acquired Total Amortisation and impairment At 1 January 2021 \u2013 (676) (594) (158) (95) (328) (1,851) Exchange differences \u2013 (5) (4) 1 (1) 4 (5) Charge for the year \u2013 (113) (34) (8) \u2013 (8) (163) Impairment charge \u2013 (4) \u2013 \u2013 \u2013 \u2013 (4) Disposals and retirements \u2013 135 \u2013 25 \u2013 43 203 Disposal of subsidiary (note 31) \u2013 \u2013 12 2 \u2013 10 24 Transfers \u2013 6 \u2013 \u2013 \u2013 \u2013 6 At 31 December 2021 \u2013 (657) (620) (138) (96) (279) (1,790) Exchange differences \u2013 (49) (65) (16) (5) (37) (172) Charge for the year \u2013 (125) (33) (8) \u2013 (13) (179) Impairment charge \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Disposals and retirements \u2013 130 \u2013 \u2013 \u2013 \u2013 130 Disposal of subsidiary (note 31) \u2013 8 20 7 \u2013 1 36 Transfers \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 At 31 December 2022 \u2013 (693) (698) (155) (101) (328) (1,975) Carrying amounts At 1 January 2021 2,094 428 157 40 2 21 2,742 At 31 December 2021 2,145 430 121 30 1 42 2,769 At 31 December 2022 2,480 422 140 31 2 102 3,177 Goodwill The goodwill carrying value of \u00a32,480m (2021: \u00a32,145m) relates to acquisitions completed after 1 January 1998. Prior to 1 January 1998, all goodwill was written off to reserves on the date of acquisition. For acquisitions completed between 1 January 1998 and 31 December 2002, no value was ascribed to intangibles other than goodwill which was amortised over a period of up to 20 years. On adoption of IFRS on 1 January 2003, the Group chose not to restate the goodwill balance and at that date the balance was frozen (i.e. amortisation ceased). If goodwill had been restated, then a significant value would have been ascribed to other intangible assets, which would be subject to amortisation, and the carrying value of goodwill would be significantly lower. For acquisitions completed after 1 January 2003, value has been ascribed to other intangible assets which are amortised. Software and acquired intangible assets Acquired intangible assets are valued separately for each acquisition. For material business combinations, the valuation is carried out by an independent valuation specialist. The primary method of valuation used is the discounted cash flow method. Acquired intangibles are amortised either on a straight line basis or using an amortisation profile based on the projected cash flows underlying the acquisition date valuation of the intangible asset, which generally results in a larger proportion of amortisation being recognised in the early years of the asset\u2019s life, depending on the individual asset. The Group keeps the expected pattern of consumption under review. Other intangibles acquired includes technology. Amortisation of \u00a332m (2021: \u00a325m; 2020: \u00a322m) is included in the income statement in cost of goods sold and \u00a3147m (2021: \u00a3138m; 2020: \u00a3158m) in operating expenses. Impairment charges of \u00a3nil (2021; \u00a34m; 2020: \u00a312m) are included in operating expenses within the income statement, of which \u00a3nil (2021: \u00a34m; 2020: \u00a3nil) relates to software, \u00a3nil (2021: \u00a3nil; 2020: \u00a32m) relates to customer lists, contracts and relationships, and \u00a3nil (2021: \u00a3nil; 2020: \u00a310m) to other intangibles acquired. The range of useful economic lives for each major class of intangible asset (excluding goodwill and software) is shown below: 2022 Useful economic life Class of intangible asset Acquired customer lists, contracts and relationships 3-20 years Acquired trademarks and brands 2-20 years Acquired publishing rights 5-20 years Other intangibles acquired 2-20 years The expected amortisation profile of acquired intangible assets is shown below: All figures in \u00a3 millions 2022 One to five years Six to ten years Eleven to fifteen years Sixteen to twenty years Total Class of intangible asset Acquired customer lists, contracts and relationships 92 30 10 8 140 Acquired trademarks and brands 24 6 1 \u2013 31 Acquired publishing rights 2 \u2013 \u2013 \u2013 2 Other intangibles acquired 82 20 \u2013 \u2013 102 11. Intangible assets continued Impairment tests for cash-generating units (CGUs) containing goodwill Impairment tests have been carried out where appropriate as described below. Goodwill was allocated to CGUs, or an aggregation of CGUs, where goodwill could not be reasonably allocated to individual business units. CGUs were revised in 2021. Impairment reviews were conducted on these revised CGUs as summarised below: 2022 CGUs All figures in \u00a3 millions 2022 Goodwill Assessment & Qualifications 1,361 Virtual Learning 443 English Language Learning 259 Workforce Skills 348 Higher Education 69 Total 2,480 2021 CGUs All figures in \u00a3 millions 2021 Goodwill Assessment & Qualifications 1,198 Virtual Learning 395 English Language Learning 153 Workforce Skills 223 Higher Education 68 Strategic Review (includes the separate CGUs of China, India, South Africa, Canada and Other Strategic Review) 108 Total 2,145 Goodwill is tested at least annually for impairment. The recoverable amount of each aggregated CGU is based on the higher of value in use and fair value less costs of disposal. The impairment assessment is based on value in use. Other than goodwill there are no intangible assets with indefinite lives. No impairments of goodwill were recorded in 2022 or 2021. KJ Key judgements The allocation of goodwill to the cash-generating units and groups of cash-generating units. KE Key areas of estimation The recoverability of goodwill balances. Key assumptions used in goodwill impairment testing are discount rates, perpetuity growth rates, forecast sales growth rates and forecast operating profits. The valuation of acquired intangible assets recognised on the acquisition of a business. See note 30. Determination of CGUs and reallocation of goodwill Pearson identifies its CGUs based on its operating model and how data is collected and reviewed for management reporting and strategic planning purposes in accordance with IAS 36 \u2018Impairment of Assets\u2019. The CGUs and CGU aggregations reflect the level at which goodwill is monitored by management. In 2021, the CGUs and aggregations of CGUs were revised to take into account the announcement and implementation of a new strategy including five new business divisions and a strategic review division. In 2021, goodwill was reallocated to the new CGUs and aggregations of CGUs. The majority of the goodwill balances were directly mapped from one previous CGU (or CGU aggregation) to one newly created CGU (or CGU aggregation). Where it was not possible to directly map the goodwill it was reallocated using a relative value method. The key area where the relative value method was used was for the goodwill related to the previous International CGU aggregation which was reallocated across the newly created CGU aggregations where applicable. In 2022, the separate CGUs of China, South Africa and Canada have been disposed. The goodwill related to the Strategic Review CGU has been reallocated between businesses disposed and businesses retained. All of the goodwill related to businesses retained has since been transferred to the Assessment & Qualifications CGU aggregation. Key assumptions For the purpose of estimating the value in use of the CGUs, management has used an income approach based on present value techniques. The calculations for all CGUs use cash flow projections based on financial budgets approved by management covering a four-year period, except for Virtual Learning which for OPM uses a longer range plan out to 2038 reflecting the term of existing contracts. The key assumptions used by management in the value in use calculations were: Discount rates \u2013 The discount rates are based on the Group\u2019s weighted average cost of capital, where the cost of equity is calculated based on the risk-free rate of government bonds, adjusted for a risk premium to reflect the increased risk in investing in equities. Where CGUs cover multiple territories, a blended risk-free rate is used. A further risk premium is assessed for each CGU. The average pre-tax discount rates range from 11.6% to 12.0% (2021: pre-tax 8.9% to 17.1%). Perpetuity growth rates \u2013 The perpetuity growth rates are based on inflation trends. A perpetuity growth rate of 2% (2021: 2%) was used for cash flows subsequent to the approved budget period for CGUs operating primarily in mature markets. This perpetuity growth rate is a conservative rate and is considered to be lower than the long-term historical growth rates of the underlying territories in which the CGU operates and the long-term growth rate prospects of the sectors in which the CGU operates. Blended growth rate of 3.5% (2021: 2.0% to 5.0%) was used for cash flows subsequent to the approved budget period for ELL which has a higher exposure to emerging markets with higher inflation. This geographically blended growth rate is generally in line with the long-term historical growth rates in those markets. The longer-term plan prepared for OPM focuses on delivery of existing contracts until their expiration, as such, a perpetuity growth rate was not applied to OPM cashflows within the Virtual Learning CGU. The key assumptions used by management in setting the financial budgets were as follows: Forecast sales growth rates \u2013 Forecast sales growth rates are based on past experience adjusted for the strategic direction and near-term investment priorities within each CGU. Key assumptions include growth in English Language Learning and Workforce Skills \u2013 in part due to contribution from new acquisitions, stabilisation and recovery in Higher Education, growth in Virtual Learning - albeit impacted by the unwinding of COVID-19 enrolments and school churn in Virtual Schools in the short term, and steady growth in Assessments and Qualifications. The sales forecasts use average nominal growth rates of low-mid single digits for mature businesses in mature markets and double digit growth where there is significant organic and inorganic investment. The Virtual Learning CGU assumes low-single digit growth for Virtual Schools, and delivery of existing contracts in OPM which is under strategic review. Operating profits \u2013 Operating profits are forecast based on historical experience of operating margins, adjusted for the impact of changes to product costs, committed restructuring plans, strategic developments and new business cases to the extent they have been formally approved prior to the balance sheet date. Management applies judgement in allocating corporate costs on a reasonable and consistent basis in order to determine operating profit at a CGU level. Forecasts reflect margin improvements secured in 2022. Management have considered the impact of climate change risks (including physical and transition risks and the costs associated with achieving the Group's net zero commitment) and are satisfied that any related costs will not materially impact the Group\u2019s profit forecasts or impairment judgements at 31 December 2022 . 11. Intangible assets continued The table below shows the key assumptions used by management in the value in use calculations. Discount rate Perpetuity growth rate Assessment & Qualifications 12.0% 2.0% Virtual Learning 11.9% 2.0% English Language Learning 11.8% 3.5% Workforce Skills 11.6% 2.0% Higher Education 12.0% 2.0% Sensitivities Impairment testing for the year ended 31 December 2022 has identified that the Virtual Learning CGU aggregation is sensitive to reasonably possible changes in key assumptions. The Virtual learning headroom at 31 December 2022 is \u00a382m, this headroom would be eliminated if the discount rate increased to 12.8%, the long term growth rate reduced to 0.8% or the adjusted operating profit per annum reduced by \u00a38m. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGoodwillExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-775": {
"value": "11. Intangible assets All figures in \u00a3 millions Goodwill Software Acquired customer lists, contracts and relationships Acquired trademarks and brands Acquired publishing rights Other intangibles acquired Total Cost At 1 January 2021 2,094 1,104 751 198 97 349 4,593 Exchange differences 8 5 4 (2) \u2013 (2) 13 Additions \u2013 internal development \u2013 110 \u2013 \u2013 \u2013 \u2013 110 Additions \u2013 purchased \u2013 2 \u2013 \u2013 \u2013 \u2013 2 Disposals and retirements \u2013 (135) \u2013 (25) \u2013 (43) (203) Acquisition of subsidiary (note 30) 43 \u2013 \u2013 \u2013 \u2013 27 70 Disposal of subsidiary (note 31) \u2013 \u2013 (14) (3) \u2013 (10) (27) Transfers \u2013 1 \u2013 \u2013 \u2013 \u2013 1 At 31 December 2021 2,145 1,087 741 168 97 321 4,559 Exchange differences 206 83 80 20 5 44 438 Additions \u2013 internal development \u2013 86 \u2013 \u2013 \u2013 \u2013 86 Additions \u2013 purchased \u2013 4 \u2013 \u2013 \u2013 \u2013 4 Disposals and retirements \u2013 (131) \u2013 \u2013 \u2013 \u2013 (131) Acquisition of subsidiary (note 30) 204 \u2013 37 6 1 66 314 Disposal of subsidiary (note 31) (75) (9) (20) (8) \u2013 (1) (113) Transfers \u2013 (5) \u2013 \u2013 \u2013 \u2013 (5) At 31 December 2022 2.480 1,115 838 186 103 430 5,152 All figures in \u00a3 millions Goodwill Software Acquired customer lists, contracts and relationships Acquired trademarks and brands Acquired publishing rights Other intangibles acquired Total Amortisation and impairment At 1 January 2021 \u2013 (676) (594) (158) (95) (328) (1,851) Exchange differences \u2013 (5) (4) 1 (1) 4 (5) Charge for the year \u2013 (113) (34) (8) \u2013 (8) (163) Impairment charge \u2013 (4) \u2013 \u2013 \u2013 \u2013 (4) Disposals and retirements \u2013 135 \u2013 25 \u2013 43 203 Disposal of subsidiary (note 31) \u2013 \u2013 12 2 \u2013 10 24 Transfers \u2013 6 \u2013 \u2013 \u2013 \u2013 6 At 31 December 2021 \u2013 (657) (620) (138) (96) (279) (1,790) Exchange differences \u2013 (49) (65) (16) (5) (37) (172) Charge for the year \u2013 (125) (33) (8) \u2013 (13) (179) Impairment charge \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Disposals and retirements \u2013 130 \u2013 \u2013 \u2013 \u2013 130 Disposal of subsidiary (note 31) \u2013 8 20 7 \u2013 1 36 Transfers \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 At 31 December 2022 \u2013 (693) (698) (155) (101) (328) (1,975) Carrying amounts At 1 January 2021 2,094 428 157 40 2 21 2,742 At 31 December 2021 2,145 430 121 30 1 42 2,769 At 31 December 2022 2,480 422 140 31 2 102 3,177 Goodwill The goodwill carrying value of \u00a32,480m (2021: \u00a32,145m) relates to acquisitions completed after 1 January 1998. Prior to 1 January 1998, all goodwill was written off to reserves on the date of acquisition. For acquisitions completed between 1 January 1998 and 31 December 2002, no value was ascribed to intangibles other than goodwill which was amortised over a period of up to 20 years. On adoption of IFRS on 1 January 2003, the Group chose not to restate the goodwill balance and at that date the balance was frozen (i.e. amortisation ceased). If goodwill had been restated, then a significant value would have been ascribed to other intangible assets, which would be subject to amortisation, and the carrying value of goodwill would be significantly lower. For acquisitions completed after 1 January 2003, value has been ascribed to other intangible assets which are amortised. Software and acquired intangible assets Acquired intangible assets are valued separately for each acquisition. For material business combinations, the valuation is carried out by an independent valuation specialist. The primary method of valuation used is the discounted cash flow method. Acquired intangibles are amortised either on a straight line basis or using an amortisation profile based on the projected cash flows underlying the acquisition date valuation of the intangible asset, which generally results in a larger proportion of amortisation being recognised in the early years of the asset\u2019s life, depending on the individual asset. The Group keeps the expected pattern of consumption under review. Other intangibles acquired includes technology. Amortisation of \u00a332m (2021: \u00a325m; 2020: \u00a322m) is included in the income statement in cost of goods sold and \u00a3147m (2021: \u00a3138m; 2020: \u00a3158m) in operating expenses. Impairment charges of \u00a3nil (2021; \u00a34m; 2020: \u00a312m) are included in operating expenses within the income statement, of which \u00a3nil (2021: \u00a34m; 2020: \u00a3nil) relates to software, \u00a3nil (2021: \u00a3nil; 2020: \u00a32m) relates to customer lists, contracts and relationships, and \u00a3nil (2021: \u00a3nil; 2020: \u00a310m) to other intangibles acquired. The range of useful economic lives for each major class of intangible asset (excluding goodwill and software) is shown below: 2022 Useful economic life Class of intangible asset Acquired customer lists, contracts and relationships 3-20 years Acquired trademarks and brands 2-20 years Acquired publishing rights 5-20 years Other intangibles acquired 2-20 years The expected amortisation profile of acquired intangible assets is shown below: All figures in \u00a3 millions 2022 One to five years Six to ten years Eleven to fifteen years Sixteen to twenty years Total Class of intangible asset Acquired customer lists, contracts and relationships 92 30 10 8 140 Acquired trademarks and brands 24 6 1 \u2013 31 Acquired publishing rights 2 \u2013 \u2013 \u2013 2 Other intangibles acquired 82 20 \u2013 \u2013 102 11. Intangible assets continued Impairment tests for cash-generating units (CGUs) containing goodwill Impairment tests have been carried out where appropriate as described below. Goodwill was allocated to CGUs, or an aggregation of CGUs, where goodwill could not be reasonably allocated to individual business units. CGUs were revised in 2021. Impairment reviews were conducted on these revised CGUs as summarised below: 2022 CGUs All figures in \u00a3 millions 2022 Goodwill Assessment & Qualifications 1,361 Virtual Learning 443 English Language Learning 259 Workforce Skills 348 Higher Education 69 Total 2,480 2021 CGUs All figures in \u00a3 millions 2021 Goodwill Assessment & Qualifications 1,198 Virtual Learning 395 English Language Learning 153 Workforce Skills 223 Higher Education 68 Strategic Review (includes the separate CGUs of China, India, South Africa, Canada and Other Strategic Review) 108 Total 2,145 Goodwill is tested at least annually for impairment. The recoverable amount of each aggregated CGU is based on the higher of value in use and fair value less costs of disposal. The impairment assessment is based on value in use. Other than goodwill there are no intangible assets with indefinite lives. No impairments of goodwill were recorded in 2022 or 2021. Key judgements The allocation of goodwill to the cash-generating units and groups of cash-generating units. KE Key areas of estimation The recoverability of goodwill balances. Key assumptions used in goodwill impairment testing are discount rates, perpetuity growth rates, forecast sales growth rates and forecast operating profits. The valuation of acquired intangible assets recognised on the acquisition of a business. See note 30. Determination of CGUs and reallocation of goodwill Pearson identifies its CGUs based on its operating model and how data is collected and reviewed for management reporting and strategic planning purposes in accordance with IAS 36 \u2018Impairment of Assets\u2019. The CGUs and CGU aggregations reflect the level at which goodwill is monitored by management. In 2021, the CGUs and aggregations of CGUs were revised to take into account the announcement and implementation of a new strategy including five new business divisions and a strategic review division. In 2021, goodwill was reallocated to the new CGUs and aggregations of CGUs. The majority of the goodwill balances were directly mapped from one previous CGU (or CGU aggregation) to one newly created CGU (or CGU aggregation). Where it was not possible to directly map the goodwill it was reallocated using a relative value method. The key area where the relative value method was used was for the goodwill related to the previous International CGU aggregation which was reallocated across the newly created CGU aggregations where applicable. In 2022, the separate CGUs of China, South Africa and Canada have been disposed. The goodwill related to the Strategic Review CGU has been reallocated between businesses disposed and businesses retained. All of the goodwill related to businesses retained has since been transferred to the Assessment & Qualifications CGU aggregation. Key assumptions For the purpose of estimating the value in use of the CGUs, management has used an income approach based on present value techniques. The calculations for all CGUs use cash flow projections based on financial budgets approved by management covering a four-year period, except for Virtual Learning which for OPM uses a longer range plan out to 2038 reflecting the term of existing contracts. The key assumptions used by management in the value in use calculations were: Discount rates \u2013 The discount rates are based on the Group\u2019s weighted average cost of capital, where the cost of equity is calculated based on the risk-free rate of government bonds, adjusted for a risk premium to reflect the increased risk in investing in equities. Where CGUs cover multiple territories, a blended risk-free rate is used. A further risk premium is assessed for each CGU. The average pre-tax discount rates range from 11.6% to 12.0% (2021: pre-tax 8.9% to 17.1%). Perpetuity growth rates \u2013 The perpetuity growth rates are based on inflation trends. A perpetuity growth rate of 2% (2021: 2%) was used for cash flows subsequent to the approved budget period for CGUs operating primarily in mature markets. This perpetuity growth rate is a conservative rate and is considered to be lower than the long-term historical growth rates of the underlying territories in which the CGU operates and the long-term growth rate prospects of the sectors in which the CGU operates. Blended growth rate of 3.5% (2021: 2.0% to 5.0%) was used for cash flows subsequent to the approved budget period for ELL which has a higher exposure to emerging markets with higher inflation. This geographically blended growth rate is generally in line with the long-term historical growth rates in those markets. The longer-term plan prepared for OPM focuses on delivery of existing contracts until their expiration, as such, a perpetuity growth rate was not applied to OPM cashflows within the Virtual Learning CGU. The key assumptions used by management in setting the financial budgets were as follows: Forecast sales growth rates \u2013 Forecast sales growth rates are based on past experience adjusted for the strategic direction and near-term investment priorities within each CGU. Key assumptions include growth in English Language Learning and Workforce Skills \u2013 in part due to contribution from new acquisitions, stabilisation and recovery in Higher Education, growth in Virtual Learning - albeit impacted by the unwinding of COVID-19 enrolments and school churn in Virtual Schools in the short term, and steady growth in Assessments and Qualifications. The sales forecasts use average nominal growth rates of low-mid single digits for mature businesses in mature markets and double digit growth where there is significant organic and inorganic investment. The Virtual Learning CGU assumes low-single digit growth for Virtual Schools, and delivery of existing contracts in OPM which is under strategic review. Operating profits \u2013 Operating profits are forecast based on historical experience of operating margins, adjusted for the impact of changes to product costs, committed restructuring plans, strategic developments and new business cases to the extent they have been formally approved prior to the balance sheet date. Management applies judgement in allocating corporate costs on a reasonable and consistent basis in order to determine operating profit at a CGU level. Forecasts reflect margin improvements secured in 2022. Management have considered the impact of climate change risks (including physical and transition risks and the costs associated with achieving the Group's net zero commitment) and are satisfied that any related costs will not materially impact the Group\u2019s profit forecasts or impairment judgements at 31 December 2022 11. Intangible assets continued The table below shows the key assumptions used by management in the value in use calculations. Discount rate Perpetuity growth rate Assessment & Qualifications 12.0% 2.0% Virtual Learning 11.9% 2.0% English Language Learning 11.8% 3.5% Workforce Skills 11.6% 2.0% Higher Education 12.0% 2.0% Sensitivities Impairment testing for the year ended 31 December 2022 has identified that the Virtual Learning CGU aggregation is sensitive to reasonably possible changes in key assumptions. The Virtual learning headroom at 31 December 2022 is \u00a382m, this headroom would be eliminated if the discount rate increased to 12.8%, the long term growth rate reduced to 0.8% or the adjusted operating profit per annum reduced by \u00a38m. 20. Intangible assets \u2013 product development All figures in \u00a3 millions 2022 2021 Cost At 1 January 2,698 2,514 Exchange differences 235 \u2013 Additions 357 287 Disposals and retirements (191) (92) Disposal of subsidiary (note 31) (186) (9) Transfers 5 (2) At 31 December 2,918 2,698 Amortisation At 1 January (1,804) (1,609) Exchange differences (174) (3) Charge for the year (288) (260) Impairment (15) (19) Disposals and retirements 191 92 Disposal of subsidiary (note 31) 147 3 Transfers \u2013 (8) At 31 December (1,943) (1,804) Carrying amounts at 31 December 975 894 Product development assets are amortised over their estimated useful economic lives. Product development assets relating to content are amortised over seven years or less, being an estimate of the expected operating lifecycle of the title, with a higher proportion of the amortisation taken in the earlier years. Product development assets relating to product platforms are amortised over 10 years or less. Amortisation is included in the income statement in cost of goods sold. Product development assets are assessed for impairment triggers on an annual basis or when triggering events occur. In 2022, of the \u00a315m (2021: \u00a319m) impairment charges, \u00a313m (2021: \u00a314m; 2020: \u00a3nil) have been recognised as a result of asset write-offs related to the major restructuring programme. The full annual impairment test showed that there is adequate headroom across all product development assets and accordingly no further impairment charges were recognised in 2022 (2021: \u00a3nil; 2020: \u00a3nil). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-734": {
"value": "11. Intangible assets All figures in \u00a3 millions Goodwill Software Acquired customer lists, contracts and relationships Acquired trademarks and brands Acquired publishing rights Other intangibles acquired Total Cost At 1 January 2021 2,094 1,104 751 198 97 349 4,593 Exchange differences 8 5 4 (2) \u2013 (2) 13 Additions \u2013 internal development \u2013 110 \u2013 \u2013 \u2013 \u2013 110 Additions \u2013 purchased \u2013 2 \u2013 \u2013 \u2013 \u2013 2 Disposals and retirements \u2013 (135) \u2013 (25) \u2013 (43) (203) Acquisition of subsidiary (note 30) 43 \u2013 \u2013 \u2013 \u2013 27 70 Disposal of subsidiary (note 31) \u2013 \u2013 (14) (3) \u2013 (10) (27) Transfers \u2013 1 \u2013 \u2013 \u2013 \u2013 1 At 31 December 2021 2,145 1,087 741 168 97 321 4,559 Exchange differences 206 83 80 20 5 44 438 Additions \u2013 internal development \u2013 86 \u2013 \u2013 \u2013 \u2013 86 Additions \u2013 purchased \u2013 4 \u2013 \u2013 \u2013 \u2013 4 Disposals and retirements \u2013 (131) \u2013 \u2013 \u2013 \u2013 (131) Acquisition of subsidiary (note 30) 204 \u2013 37 6 1 66 314 Disposal of subsidiary (note 31) (75) (9) (20) (8) \u2013 (1) (113) Transfers \u2013 (5) \u2013 \u2013 \u2013 \u2013 (5) At 31 December 2022 2.480 1,115 838 186 103 430 5,152 All figures in \u00a3 millions Goodwill Software Acquired customer lists, contracts and relationships Acquired trademarks and brands Acquired publishing rights Other intangibles acquired Total Amortisation and impairment At 1 January 2021 \u2013 (676) (594) (158) (95) (328) (1,851) Exchange differences \u2013 (5) (4) 1 (1) 4 (5) Charge for the year \u2013 (113) (34) (8) \u2013 (8) (163) Impairment charge \u2013 (4) \u2013 \u2013 \u2013 \u2013 (4) Disposals and retirements \u2013 135 \u2013 25 \u2013 43 203 Disposal of subsidiary (note 31) \u2013 \u2013 12 2 \u2013 10 24 Transfers \u2013 6 \u2013 \u2013 \u2013 \u2013 6 At 31 December 2021 \u2013 (657) (620) (138) (96) (279) (1,790) Exchange differences \u2013 (49) (65) (16) (5) (37) (172) Charge for the year \u2013 (125) (33) (8) \u2013 (13) (179) Impairment charge \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Disposals and retirements \u2013 130 \u2013 \u2013 \u2013 \u2013 130 Disposal of subsidiary (note 31) \u2013 8 20 7 \u2013 1 36 Transfers \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 At 31 December 2022 \u2013 (693) (698) (155) (101) (328) (1,975) Carrying amounts At 1 January 2021 2,094 428 157 40 2 21 2,742 At 31 December 2021 2,145 430 121 30 1 42 2,769 At 31 December 2022 2,480 422 140 31 2 102 3,177 Goodwill The goodwill carrying value of \u00a32,480m (2021: \u00a32,145m) relates to acquisitions completed after 1 January 1998. Prior to 1 January 1998, all goodwill was written off to reserves on the date of acquisition. For acquisitions completed between 1 January 1998 and 31 December 2002, no value was ascribed to intangibles other than goodwill which was amortised over a period of up to 20 years. On adoption of IFRS on 1 January 2003, the Group chose not to restate the goodwill balance and at that date the balance was frozen (i.e. amortisation ceased). If goodwill had been restated, then a significant value would have been ascribed to other intangible assets, which would be subject to amortisation, and the carrying value of goodwill would be significantly lower. For acquisitions completed after 1 January 2003, value has been ascribed to other intangible assets which are amortised. Software and acquired intangible assets Acquired intangible assets are valued separately for each acquisition. For material business combinations, the valuation is carried out by an independent valuation specialist. The primary method of valuation used is the discounted cash flow method. Acquired intangibles are amortised either on a straight line basis or using an amortisation profile based on the projected cash flows underlying the acquisition date valuation of the intangible asset, which generally results in a larger proportion of amortisation being recognised in the early years of the asset\u2019s life, depending on the individual asset. The Group keeps the expected pattern of consumption under review. Other intangibles acquired includes technology. Amortisation of \u00a332m (2021: \u00a325m; 2020: \u00a322m) is included in the income statement in cost of goods sold and \u00a3147m (2021: \u00a3138m; 2020: \u00a3158m) in operating expenses. Impairment charges of \u00a3nil (2021; \u00a34m; 2020: \u00a312m) are included in operating expenses within the income statement, of which \u00a3nil (2021: \u00a34m; 2020: \u00a3nil) relates to software, \u00a3nil (2021: \u00a3nil; 2020: \u00a32m) relates to customer lists, contracts and relationships, and \u00a3nil (2021: \u00a3nil; 2020: \u00a310m) to other intangibles acquired. The range of useful economic lives for each major class of intangible asset (excluding goodwill and software) is shown below: 2022 Useful economic life Class of intangible asset Acquired customer lists, contracts and relationships 3-20 years Acquired trademarks and brands 2-20 years Acquired publishing rights 5-20 years Other intangibles acquired 2-20 years The expected amortisation profile of acquired intangible assets is shown below: All figures in \u00a3 millions 2022 One to five years Six to ten years Eleven to fifteen years Sixteen to twenty years Total Class of intangible asset Acquired customer lists, contracts and relationships 92 30 10 8 140 Acquired trademarks and brands 24 6 1 \u2013 31 Acquired publishing rights 2 \u2013 \u2013 \u2013 2 Other intangibles acquired 82 20 \u2013 \u2013 102 11. Intangible assets continued Impairment tests for cash-generating units (CGUs) containing goodwill Impairment tests have been carried out where appropriate as described below. Goodwill was allocated to CGUs, or an aggregation of CGUs, where goodwill could not be reasonably allocated to individual business units. CGUs were revised in 2021. Impairment reviews were conducted on these revised CGUs as summarised below: 2022 CGUs All figures in \u00a3 millions 2022 Goodwill Assessment & Qualifications 1,361 Virtual Learning 443 English Language Learning 259 Workforce Skills 348 Higher Education 69 Total 2,480 2021 CGUs All figures in \u00a3 millions 2021 Goodwill Assessment & Qualifications 1,198 Virtual Learning 395 English Language Learning 153 Workforce Skills 223 Higher Education 68 Strategic Review (includes the separate CGUs of China, India, South Africa, Canada and Other Strategic Review) 108 Total 2,145 Goodwill is tested at least annually for impairment. The recoverable amount of each aggregated CGU is based on the higher of value in use and fair value less costs of disposal. The impairment assessment is based on value in use. Other than goodwill there are no intangible assets with indefinite lives. No impairments of goodwill were recorded in 2022 or 2021. Key judgements The allocation of goodwill to the cash-generating units and groups of cash-generating units. KE Key areas of estimation The recoverability of goodwill balances. Key assumptions used in goodwill impairment testing are discount rates, perpetuity growth rates, forecast sales growth rates and forecast operating profits. The valuation of acquired intangible assets recognised on the acquisition of a business. See note 30. Determination of CGUs and reallocation of goodwill Pearson identifies its CGUs based on its operating model and how data is collected and reviewed for management reporting and strategic planning purposes in accordance with IAS 36 \u2018Impairment of Assets\u2019. The CGUs and CGU aggregations reflect the level at which goodwill is monitored by management. In 2021, the CGUs and aggregations of CGUs were revised to take into account the announcement and implementation of a new strategy including five new business divisions and a strategic review division. In 2021, goodwill was reallocated to the new CGUs and aggregations of CGUs. The majority of the goodwill balances were directly mapped from one previous CGU (or CGU aggregation) to one newly created CGU (or CGU aggregation). Where it was not possible to directly map the goodwill it was reallocated using a relative value method. The key area where the relative value method was used was for the goodwill related to the previous International CGU aggregation which was reallocated across the newly created CGU aggregations where applicable. In 2022, the separate CGUs of China, South Africa and Canada have been disposed. The goodwill related to the Strategic Review CGU has been reallocated between businesses disposed and businesses retained. All of the goodwill related to businesses retained has since been transferred to the Assessment & Qualifications CGU aggregation. Key assumptions For the purpose of estimating the value in use of the CGUs, management has used an income approach based on present value techniques. The calculations for all CGUs use cash flow projections based on financial budgets approved by management covering a four-year period, except for Virtual Learning which for OPM uses a longer range plan out to 2038 reflecting the term of existing contracts. The key assumptions used by management in the value in use calculations were: Discount rates \u2013 The discount rates are based on the Group\u2019s weighted average cost of capital, where the cost of equity is calculated based on the risk-free rate of government bonds, adjusted for a risk premium to reflect the increased risk in investing in equities. Where CGUs cover multiple territories, a blended risk-free rate is used. A further risk premium is assessed for each CGU. The average pre-tax discount rates range from 11.6% to 12.0% (2021: pre-tax 8.9% to 17.1%). Perpetuity growth rates \u2013 The perpetuity growth rates are based on inflation trends. A perpetuity growth rate of 2% (2021: 2%) was used for cash flows subsequent to the approved budget period for CGUs operating primarily in mature markets. This perpetuity growth rate is a conservative rate and is considered to be lower than the long-term historical growth rates of the underlying territories in which the CGU operates and the long-term growth rate prospects of the sectors in which the CGU operates. Blended growth rate of 3.5% (2021: 2.0% to 5.0%) was used for cash flows subsequent to the approved budget period for ELL which has a higher exposure to emerging markets with higher inflation. This geographically blended growth rate is generally in line with the long-term historical growth rates in those markets. The longer-term plan prepared for OPM focuses on delivery of existing contracts until their expiration, as such, a perpetuity growth rate was not applied to OPM cashflows within the Virtual Learning CGU. The key assumptions used by management in setting the financial budgets were as follows: Forecast sales growth rates \u2013 Forecast sales growth rates are based on past experience adjusted for the strategic direction and near-term investment priorities within each CGU. Key assumptions include growth in English Language Learning and Workforce Skills \u2013 in part due to contribution from new acquisitions, stabilisation and recovery in Higher Education, growth in Virtual Learning - albeit impacted by the unwinding of COVID-19 enrolments and school churn in Virtual Schools in the short term, and steady growth in Assessments and Qualifications. The sales forecasts use average nominal growth rates of low-mid single digits for mature businesses in mature markets and double digit growth where there is significant organic and inorganic investment. The Virtual Learning CGU assumes low-single digit growth for Virtual Schools, and delivery of existing contracts in OPM which is under strategic review. Operating profits \u2013 Operating profits are forecast based on historical experience of operating margins, adjusted for the impact of changes to product costs, committed restructuring plans, strategic developments and new business cases to the extent they have been formally approved prior to the balance sheet date. Management applies judgement in allocating corporate costs on a reasonable and consistent basis in order to determine operating profit at a CGU level. Forecasts reflect margin improvements secured in 2022. Management have considered the impact of climate change risks (including physical and transition risks and the costs associated with achieving the Group's net zero commitment) and are satisfied that any related costs will not materially impact the Group\u2019s profit forecasts or impairment judgements at 31 December 2022 . 11. Intangible assets continued The table below shows the key assumptions used by management in the value in use calculations. Discount rate Perpetuity growth rate Assessment & Qualifications 12.0% 2.0% Virtual Learning 11.9% 2.0% English Language Learning 11.8% 3.5% Workforce Skills 11.6% 2.0% Higher Education 12.0% 2.0% Sensitivities Impairment testing for the year ended 31 December 2022 has identified that the Virtual Learning CGU aggregation is sensitive to reasonably possible changes in key assumptions. The Virtual learning headroom at 31 December 2022 is \u00a382m, this headroom would be eliminated if the discount rate increased to 12.8%, the long term growth rate reduced to 0.8% or the adjusted operating profit per annum reduced by \u00a38m. 20. Intangible assets \u2013 product development All figures in \u00a3 millions 2022 2021 Cost At 1 January 2,698 2,514 Exchange differences 235 \u2013 Additions 357 287 Disposals and retirements (191) (92) Disposal of subsidiary (note 31) (186) (9) Transfers 5 (2) At 31 December 2,918 2,698 Amortisation At 1 January (1,804) (1,609) Exchange differences (174) (3) Charge for the year (288) (260) Impairment (15) (19) Disposals and retirements 191 92 Disposal of subsidiary (note 31) 147 3 Transfers \u2013 (8) At 31 December (1,943) (1,804) Carrying amounts at 31 December 975 894 Product development assets are amortised over their estimated useful economic lives. Product development assets relating to content are amortised over seven years or less, being an estimate of the expected operating lifecycle of the title, with a higher proportion of the amortisation taken in the earlier years. Product development assets relating to product platforms are amortised over 10 years or less. Amortisation is included in the income statement in cost of goods sold. Product development assets are assessed for impairment triggers on an annual basis or when triggering events occur. In 2022, of the \u00a315m (2021: \u00a319m) impairment charges, \u00a313m (2021: \u00a314m; 2020: \u00a3nil) have been recognised as a result of asset write-offs related to the major restructuring programme. The full annual impairment test showed that there is adequate headroom across all product development assets and accordingly no further impairment charges were recognised in 2022 (2021: \u00a3nil; 2020: \u00a3nil). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-776": {
"value": "12. Investments in joint ventures and associates The amounts recognised in the balance sheet are as follows: All figures in \u00a3 millions 2022 2021 Associates 25 24 Total 25 24 The amounts recognised in the income statement are as follows: All figures in \u00a3 millions 2022 2021 Associates 1 1 Total 1 1 The Group has no material associates or joint ventures. The largest associate is a 40% interest in the Academy of Pop (AOP), which was set up in 2021. It had a year end carrying amount of \u00a39m (2021: \u00a310m), of which \u00a35m (2021: \u00a37m) was still to be paid as at 31 December 2022 (see note 36). AOP is incorporated in Delaware and is a Limited Liability Company. It was set up with XIX Entertainment to create a new entertainment driven performing arts learning platform, which will offer coaching from renowned instructors, with a combination of physical locations and online learning. There were no other material transactions with associates or joint ventures during 2022 or 2021. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-735": {
"value": "12. Investments in joint ventures and associates The amounts recognised in the balance sheet are as follows: All figures in \u00a3 millions 2022 2021 Associates 25 24 Total 25 24 The amounts recognised in the income statement are as follows: All figures in \u00a3 millions 2022 2021 Associates 1 1 Total 1 1 The Group has no material associates or joint ventures. The largest associate is a 40% interest in the Academy of Pop (AOP), which was set up in 2021. It had a year end carrying amount of \u00a39m (2021: \u00a310m), of which \u00a35m (2021: \u00a37m) was still to be paid as at 31 December 2022 (see note 36). AOP is incorporated in Delaware and is a Limited Liability Company. It was set up with XIX Entertainment to create a new entertainment driven performing arts learning platform, which will offer coaching from renowned instructors, with a combination of physical locations and online learning. There were no other material transactions with associates or joint ventures during 2022 or 2021. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfJointVenturesExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-736": {
"value": "13. Deferred income tax All figures in \u00a3 millions 2022 2021 Deferred income tax assets 57 57 Deferred income tax liabilities (37) (40) Net deferred income tax asset/(liability) 20 17 Substantially all of the deferred income tax assets are expected to be recovered after more than one year. Deferred income tax assets and liabilities shall be offset when there is a legally enforceable right to offset current income tax assets with current income tax liabilities and where the deferred income taxes relate to the same fiscal authority. At 31 December 2022, the Group has gross tax losses for which no deferred tax asset is recognised of \u00a3547m (2021: \u00a3721m). The expiry date and key geographic split of these losses is set out in the following table. Year ended 31 December 2022 Gross Tax effected UK US Other Total UK US Other Total Tax losses expiring: Within 10 years \u2013 3 30 33 \u2013 \u2013 10 10 Within 10-20 years \u2013 104 \u2013 104 \u2013 5 \u2013 5 Available indefinitely 166 30 214 410 41 2 68 111 Total 166 137 244 547 41 7 78 126 Year ended 31 December 2021 Gross Tax effected UK US Other Total UK US Other Total Tax losses expiring: Within 10 years \u2013 9 27 36 \u2013 \u2013 10 10 Within 10-20 years \u2013 297 \u2013 297 \u2013 14 \u2013 14 Available indefinitely 166 86 136 388 41 5 49 95 Total 166 392 163 721 41 19 59 119 The reduction in unrecognised tax attributes in the US has been impacted by two factors. Firstly certain US tax attributes have now been recognised, however, due to uncertainty over recoverability have been provided against. Offsetting this is the de-recognition of certain state tax losses following changes in the forecast profitability of US legal entities. The increase in unrecognised tax losses in other territories is primarily due to foreign exchange and additional losses incurred across territories which have incurred losses either in the ordinary course of trade or as a result of wind down activities. Other gross deductible temporary differences for which no deferred tax asset is recognised total \u00a3218m (2021: \u00a322m). This includes \u00a3193m in respect of interest limitations, with the increase from 2021 due to changes in the forecast profitability of certain US legal entities. The amount of temporary differences associated with subsidiaries for which no deferred tax has been provided totals \u00a3275m (2021: \u00a3229m). In the UK March Budget 2021, the Government announced that from 1 April 2023 the UK corporation tax rate will increase to 25%, and this was substantively enacted on 24 May 2021. UK deferred tax balances have been remeasured at the enacted rate. Deferred income tax assets of \u00a314m (2021: \u00a319m) have been recognised in countries that reported a tax loss in either the current or preceding year. This primarily arises in Brazil in respect of tax deductible goodwill and tax losses. It is considered more likely than not that there will be sufficient future taxable profits to realise these assets. The recognition of the deferred income tax assets is supported by management\u2019s forecasts of the future profitability of the relevant countries. In some cases deferred income tax assets are forecast to be recovered through taxable profits over a period that exceeds five years. Management consider these forecasts are sufficiently reliable to support the recovery of the assets. Where there are insufficient forecasts of future profits, deferred income tax assets have not been recognised. The movement in deferred income tax assets and liabilities during the year is as follows: All figures in \u00a3 millions Trading losses Accruals and other provisions Retirement benefit obligations Deferred revenue Goodwill and intangibles Interest limitations Other Total Deferred income tax assets/ (liabilities) At 1 January 2021 47 35 (49) 45 (209) 76 25 (30) Exchange differences \u2013 (1) \u2013 \u2013 (2) \u2013 2 (1) Acquisition of subsidiaries 1 \u2013 \u2013 \u2013 4 \u2013 \u2013 5 Income statement benefit/(charge) 34 30 2 7 29 (21) 35 116 Tax charge in OCI \u2013 \u2013 (61) \u2013 \u2013 \u2013 (12) (73) At 31 December 2021 82 64 (108) 52 (178) 55 50 17 Exchange differences \u2013 7 2 6 (21) 6 4 4 Acquisitions and disposals of subsidiaries 7 \u2013 \u2013 \u2013 (21) \u2013 (12) (26) Income statement benefit/(charge) 37 (4) (9) 5 14 (6) (7) 30 Tax charge in OCI / equity 4 \u2013 (12) \u2013 \u2013 \u2013 3 (5) At 31 December 2022 130 67 (127) 63 (206) 55 38 20 Other deferred income tax items include temporary differences in respect of right-of-use assets (deferred tax asset of \u00a366m, with an offsetting deferred tax liability of \u00a350m), accelerated capital allowances (\u00a313m) and share-based payments (\u00a39m). As at 31 December 2022, no deferred income tax assets or liabilities were classified as held for sale (2021: \u00a3nil). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-737": {
"value": "14. Classification of financial instruments The accounting classification of each class of the Group\u2019s financial assets, and their carrying values, is as follows: All figures in \u00a3 millions Notes 2022 2021 Fair value Amortised cost Total carrying value Fair value Amortised cost Total carrying value Fair value through other comprehensive income Fair value through profit and loss Fair value \u2013 hedging instrument Financial assets Fair value through other comprehensive income 1 Fair value through profit and loss1 Fair value \u2013 hedging instrument Financial assets Investments in unlisted securities 15 24 109 \u2013 \u2013 133 28 85 \u2013 \u2013 113 Cash and cash equivalents 17 \u2013 40 \u2013 518 558 \u2013 84 \u2013 853 937 Derivative financial instruments 16 \u2013 5 54 \u2013 59 \u2013 \u2013 32 \u2013 32 Trade receivables 22 \u2013 \u2013 \u2013 825 825 \u2013 \u2013 \u2013 854 854 Investment in finance lease receivable 22 \u2013 \u2013 \u2013 121 121 \u2013 \u2013 \u2013 115 115 Other receivable \u2013 \u2013 \u2013 3 3 \u2013 87 \u2013 \u2013 87 Total financial assets 24 154 54 1,467 1,699 28 256 32 1,822 2,138 1. Comparative balances have been restated \u2013 see Note 1b. The carrying value of the Group\u2019s financial assets is equal to, or approximately equal to, the market value. The other receivable relates to the receivable which arose on the disposal of the US K-12 business and was paid during the year. The accounting classification of each class of the Group\u2019s financial liabilities, together with their carrying values and market values, is as follows: All figures in \u00a3 millions Notes 2022 2021 Fair value Amortised cost Total carrying value Total market value Fair value Amortised cost Total carrying value Total market value Fair value through profit and loss Fair value \u2013 hedging instrument Other financial liabilities Fair value through profit and loss Fair value \u2013 hedging instrument Other financial liabilities Derivative financial instruments 16 (2) (63) \u2013 (65) (65) (12) (22) \u2013 (34) (34) Trade payables 24 \u2013 \u2013 (348) (348) (348) \u2013 \u2013 (351) (351) (351) Deferred and contingent consideration 24 (79) \u2013 \u2013 (79) (79) (44) \u2013 \u2013 (44) (44) Other borrowings due within one year 18 \u2013 \u2013 (86) (86) (86) \u2013 \u2013 (155) (155) (155) Borrowings due after more than one year 18 \u2013 \u2013 (1,144) (1,144) (1,096) \u2013 \u2013 (1,245) (1,245) (1,276) Total financial liabilities (81) (63) (1,578) (1,722) (1,674) (56) (22) (1,751) (1,829) (1,860) The market value of leases has been stated at book value. Fair value measurement As shown above, the Group\u2019s derivative assets and liabilities, unlisted securities, marketable securities and deferred and contingent consideration are held at fair value. Financial instruments that are measured subsequently to initial recognition at fair value are grouped into levels 1 to 3, based on the degree to which the fair value is observable, as follows: Level 1 fair value measurements are those derived from unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 fair value measurements are those derived from inputs, other than quoted prices included within level 1, that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices). Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). The Group\u2019s bonds valued at \u00a3610m (2021: \u00a3767m) and money market funds of \u00a340m (2021: \u00a384m) included within cash and cash equivalents are classified as level 1. The Group\u2019s derivative assets valued at \u00a359m (2021: \u00a332m) and derivative liabilities valued at \u00a365m (2021: \u00a334m) are classified as level 2. The Group\u2019s investments in unlisted securities are valued at \u00a3133m (2021: \u00a3113m) and the other receivable that was repaid in the year \u00a33m (2021: \u00a387m) are classified as level 3. The following table analyses the movements in level 3 fair value remeasurements: All figures in \u00a3 millions 2022 20211 Other receivable Investments in unlisted securities Total Total At beginning of year 87 113 200 234 Exchange differences 1 9 10 2 Acquisition of investments and other receivable 7 12 19 4 Repayments (92) \u2013 (92) (16) Disposal of investments \u2013 (48) (48) (54) Fair value movements - OCI \u2013 18 18 4 Fair value movements - income statement \u2013 29 29 26 At end of year 3 133 136 200 1. Comparative balances have been restated \u2013 see Note 1b. The fair value of the investments in unlisted securities is determined by reference to the financial performance of the underlying asset, recent funding rounds and amounts realised on the sale of similar assets. The other receivable at the beginning of the year arose on the disposal of the US K-12 business, and was repaid in January 2022, following a \u00a316m partial repayment in 2021. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-777": {
"value": "Fair value measurement As shown above, the Group\u2019s derivative assets and liabilities, unlisted securities, marketable securities and deferred and contingent consideration are held at fair value. Financial instruments that are measured subsequently to initial recognition at fair value are grouped into levels 1 to 3, based on the degree to which the fair value is observable, as follows: Level 1 fair value measurements are those derived from unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 fair value measurements are those derived from inputs, other than quoted prices included within level 1, that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices). Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). The Group\u2019s bonds valued at \u00a3610m (2021: \u00a3767m) and money market funds of \u00a340m (2021: \u00a384m) included within cash and cash equivalents are classified as level 1. The Group\u2019s derivative assets valued at \u00a359m (2021: \u00a332m) and derivative liabilities valued at \u00a365m (2021: \u00a334m) are classified as level 2. The Group\u2019s investments in unlisted securities are valued at \u00a3133m (2021: \u00a3113m) and the other receivable that was repaid in the year \u00a33m (2021: \u00a387m) are classified as level 3. The following table analyses the movements in level 3 fair value remeasurements: All figures in \u00a3 millions 2022 20211 Other receivable Investments in unlisted securities Total Total At beginning of year 87 113 200 234 Exchange differences 1 9 10 2 Acquisition of investments and other receivable 7 12 19 4 Repayments (92) \u2013 (92) (16) Disposal of investments \u2013 (48) (48) (54) Fair value movements - OCI \u2013 18 18 4 Fair value movements - income statement \u2013 29 29 26 At end of year 3 133 136 200 1. Comparative balances have been restated \u2013 see Note 1b. The fair value of the investments in unlisted securities is determined by reference to the financial performance of the underlying asset, recent funding rounds and amounts realised on the sale of similar assets. The other receivable at the beginning of the year arose on the disposal of the US K-12 business, and was repaid in January 2022, following a \u00a316m partial repayment in 2021. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-738": {
"value": "15. Other financial assets All figures in \u00a3 millions 2022 2021 1 At beginning of year 113 138 Exchange differences 9 1 Acquisition of investments 12 4 Disposal of investments (48) (54) Fair value movements - OCI 18 4 Fair value movements - income statement 29 20 At end of year 133 113 1. Comparative balances have been restated \u2013 see Note 1b. Other financial assets are unlisted securities of \u00a3133m (2021: \u00a3113m), of which \u00a324m (2021: \u00a328m) are classified at fair value through other comprehensive income (FVOCI), with the remaining \u00a3109m (2021: \u00a385m) mainly relating to investments in funds, being required to be held at fair value through profit and loss (FVTPL). The assets, which are not held for trading, relate to the Group\u2019s interests in new and innovative educational ventures across the world. These are strategic investments and where permitted, the Group made the election to classify such investments as FVOCI on initial recognition of the assets. None of the investments are individually significant to the financial statements and therefore sensitivities have not been provided. During the year, the Group disposed of investments that were classified as FVOCI for \u00a331m (2021: \u00a36m). These disposals predominantly relate to the Group\u2019s investments in Credly in 2022 and Faethm in 2021. In both cases the remainder of the share capital was purchased by the Group and so the investment is disposed as the companies are now fully consolidated. The cumulative gain on disposal was \u00a323m (2021: \u00a34m). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-739": {
"value": "The Group\u2019s treasury policies only allow derivatives to be traded where the objective is risk mitigation. These are then designated for hedge accounting using the following criteria: \u2014 Where interest rate and cross-currency interest rate swaps are used to convert fixed rate debt to floating and we expect to receive inflows equal to the fixed rate debt interest, these are classified as fair value hedges \u2014 Where derivatives are used to create a future foreign currency exposure to provide protection against currency movements affecting the foreign currency movements of an overseas investment, these are designated as a net investment hedge \u2014 All other derivatives are not designated in a hedge relationship. The Group\u2019s fixed rate GBP debt is held as fixed rate instruments at amortised cost. The Group uses a combination of interest rate and cross currency swaps to convert its \u20ac300m EUR debt. Receive Notional Receive coupon FX rate Notional Pay coupon \u20ac100m 1.375% GBPEUR: 1.1295 \u00a387m 3.51% \u20ac181m 1.375% GBPUSD: 1.206 \u00a3160m 3.402% \u20ac19m 1.375% GBPUSD: 1.206 \u00a323m USD Libor +1.36% To create the synthetic debt positions outlined above the Group converts \u20ac100m to \u00a387m at a rate of 3.51% this is not in a hedge relationship. The remaining \u20ac200m of its EUR fixed debt is swapped to EUR floating debt via interest rate swap contracts that are in a designated fair value hedge. The EUR floating debt is then converted to GBP floating debt via cross-currency swap contracts that are in a designated fair value hedge. The GBP floating debt is then converted to USD floating debt through cross-currency swap contracts that are in a designated net investment hedging relationship. \u00a3160m of the EUR debt is finally converted to USD fixed debt via interest rate swap contracts that are not in a hedge relationship. Additionally, the Group uses FX derivatives including forwards, collars, cross-currency swaps and swaptions to create synthetic USD debt as a hedge of its USD assets and to achieve reasonable certainty of USD currency conversion rates, in line with the Group\u2019s FX hedging policy. As at 31 December 2022 the Group held FX outrights with a notional of $378m at an average rate of GBP:USD rate of 1.24. The Group\u2019s portfolio of derivatives is diversified by maturity, counterparty and type. Natural offsets between transactions within the portfolio and the designation of certain derivatives as hedges significantly reduce the risk of income statement volatility. The sensitivity of the portfolio to changes in market rates is set out in note 19. In 2021, the Group transitioned GBP exposures from GBP LIBOR to SONIA. During the year, for USD exposures the Group transitioned its RCF from USD LIBOR to SOFR, it plans to move other exposures including derivatives in the near future. The Group\u2019s risk management strategy has not changed as a result of IBOR Reform and it is considered to be immaterial to the financial statements. Fair value hedges The Group uses interest rate swaps and cross-currency swaps as fair value hedges of the Group\u2019s euro issued debt. Interest rate exposure arises from movements in the fair value of the Group\u2019s euro debt attributable to movements in euro interest rates. The hedged risk is the change in the euro bonds fair value attributable to interest rate movements. The hedged items are the Group\u2019s euro bonds which are issued at a fixed rate. The hedging instruments are fixed to floating euro interest rate swaps where the Group receives fixed interest payments and pays three-month Euribor. As the critical terms of the interest rate swaps match the bonds, there is an expectation that the value of the hedging instrument and the value of the hedged item will move equally in the opposite direction as a result of movements in the zero coupon Euribor curve. Potential sources of hedge ineffectiveness would be material changes in the credit risk of swap counterparties or a reduction or modification in the hedge item. 16. Derivative financial instruments and hedge accounting The Group\u2019s approach to the management of financial risks is set out in note 19. The Group\u2019s outstanding derivative financial instruments are as follows: All figures in \u00a3 millions 2022 2021 Gross notional amounts Assets Liabilities Gross notional amounts Assets Liabilities Interest rate derivatives \u2013 in a fair value hedge relationship 177 \u2013 (11) 168 5 \u2013 Interest rate derivatives \u2013 not in a hedge relationship 260 19 \u2013 217 \u2013 (9) Cross-currency rate derivatives \u2013 in a hedge relationship 83 34 (43) 331 24 (21) FX derivatives \u2013 in a hedge relationship 355 1 (9) 237 3 (1) FX derivatives \u2013 not in a hedge relationship 573 5 (2) 193 \u2013 (3) Total 1,448 59 (65) 1,146 32 (34) Analysed as expiring: In less than one year 1,028 16 (11) 393 2 (4) Later than one year and not later than five years 420 43 (54) 679 30 (26) Later than five years \u2013 \u2013 \u2013 74 \u2013 (4) Total 1,448 59 (65) 1,146 32 (34) A foreign currency exposure arises from foreign exchange fluctuations on translation of the Group\u2019s euro debt into GBP. The hedged risk is the risk of changes in the GBPEUR spot rate that will result in changes in the value of the euro debt when translated into GBP. The hedged items are a portion of the Group\u2019s euro bonds. The hedging instruments are floating to floating cross currency swaps which mitigates an exposure to the effect of euro strengthening against GBP within the hedge item. As the critical terms of the cross-currency swap match the bonds, there is an expectation that the value of the hedging instrument and the value of the hedged item move in the opposite direction as a result of movements in the EUR:GBP exchange rate. Potential sources of hedge ineffectiveness are a reduction or modification in the hedged item or a material change in the credit risk of swap counterparties. The Group held the following instruments to hedge exposures to changes in interest rates and foreign currency risk associated with borrowings: All figures in \u00a3 millions 2022 Carrying amount of hedging instruments Change in fair value of hedging instrument used to determine hedge ineffectiveness Nominal amounts of hedging instruments Derivative financial instruments for interest rate risk (11) (16) 177 Derivative financial instruments for currency risk 33 9 266 All figures in \u00a3 millions 2021 Carrying amount of hedging instruments Change in fair value of hedging instrument used to determine hedge ineffectiveness Nominal amounts of hedging instruments Derivative financial instruments for interest rate risk 5 (5) 168 Derivative financial instruments for currency risk 24 (20) 168 The amounts at the reporting date relating to items designated as hedge items were as follows: All figures in \u00a3 millions 2022 Carrying amount of hedged items Accumulated amount of fair value hedge adjustments on the hedged item included in the carrying amount Change in fair value of hedged item used to determine hedge ineffectiveness Hedge ineffectiveness Line item in profit or loss that includes hedge ineffectiveness Interest rate risk Financial liabilities \u2013 borrowings (167) 11 15 (1) Finance costs Currency risk Financial liabilities \u2013 borrowings (167) n/a (14) \u2013 n/a All figures in \u00a3 millions 2021 Carrying amount of hedged items Accumulated amount of fair value hedge adjustments on the hedged item included in the carrying amount Change in fair value of hedged item used to determine hedge ineffectiveness Hedge ineffectiveness Line item in profit or loss that includes hedge ineffectiveness Interest rate risk Financial liabilities \u2013 borrowings (173) (4) 5 \u2013 n/a Currency risk Financial liabilities \u2013 borrowings (173) n/a 20 \u2013 n/a Hedge of net investment in a foreign operation A foreign currency exposure arises from the translation of the Group\u2019s net investments in its subsidiaries which have USD and EUR functional currencies. The hedged risk is the risk of changes in the GBP:USD and GBP:EUR spot rates that will result in changes in the value of the Group\u2019s net investment in its USD and EUR assets when translated into GBP. The hedged items are a portion of the Group\u2019s assets which are denominated in USD and EUR. The hedging instruments are debt and derivative financial instruments, including cross-currency swaps, FX forwards (including non-deliverable forwards) and FX collars, which mitigates an exposure to the effect of a weakening USD or EUR on the hedged item against GBP. 16. Derivative financial instruments and hedge accounting continued It is expected that the change in value of each of these items will offset each other as there is a clear and direct economic relationship between the hedging instrument and the hedged item in the hedge relationship. Hedge ineffectiveness would arise if the value of the hedged items fell below the value of the hedging instruments; however, this is unlikely as the value of the Group\u2019s assets denominated in USD and EUR is significantly greater than the proposed net investment programme. The amounts related to items designated as hedging instruments were as follows: All figures in \u00a3 millions 2022 Carrying amount of hedging instruments Change in value of hedging instrument used to determine hedge ineffectiveness Nominal amounts of hedging instruments Hedging gains/(losses) recognised in OCI Hedge ineffectiveness recognised in profit or loss Derivative financial instruments (50) (31) 172 (31) \u2013 Financial liabilities \u2013 borrowings (89) (5) (88) (5) \u2013 All figures in \u00a3 millions 2021 Carrying amount of hedging instruments Change in value of hedging instrument used to determine hedge ineffectiveness Nominal amounts of hedging instruments Hedging gains/(losses) recognised in OCI Hedge ineffectiveness recognised in profit or loss Derivative financial instruments (19) (2) (400) (2) \u2013 Financial liabilities \u2013 borrowings (240) 4 (240) 4 \u2013 Included in the translation reserve is a cost of hedging reserve relating to the time value of FX collars which is not separately disclosed due to materiality. The value of that reserve will decrease over the life of the hedge transaction. The balance as at 1 January and 31 December 2022 was \u00a31m. During the year \u00a32m of hedging gains were recycled to the profit and loss on the discontinuance of the net investment hedge of our Italian business. Offsetting arrangements with derivative counterparties All of the Group\u2019s derivative financial instruments are subject to enforceable netting arrangements with individual counterparties, allowing net settlement in the event of default of either party. Derivative financial assets and liabilities subject to offsetting arrangements are as follows: All figures in \u00a3 millions 2022 2021 Gross derivative assets Gross derivative liabilities Net derivative assets/ liabilities Gross derivative assets Gross derivative liabilities Net derivative assets/ liabilities Counterparties in an asset position 30 (17) 13 17 (12) 5 Counterparties in a liability position 29 (48) (19) 15 (22) (7) Total as presented in the balance sheet 59 (65) (6) 32 (34) (2) Offset arrangements in respect of cash balances are described in note 17. Counterparty exposure from all derivatives is managed, together with that from deposits and bank account balances, within credit limits that reflect published credit ratings and by reference to other market measures (e.g. market prices for credit default swaps) to ensure that there is no significant exposure to any one counterparty\u2019s credit risk. The Group has no material embedded derivatives that are required to be separately accounted for in accordance with IFRS 9 \u2018Financial Instruments\u2019. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDerivativeFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-778": {
"value": "The Group\u2019s treasury policies only allow derivatives to be traded where the objective is risk mitigation. These are then designated for hedge accounting using the following criteria: \u2014 Where interest rate and cross-currency interest rate swaps are used to convert fixed rate debt to floating and we expect to receive inflows equal to the fixed rate debt interest, these are classified as fair value hedges \u2014 Where derivatives are used to create a future foreign currency exposure to provide protection against currency movements affecting the foreign currency movements of an overseas investment, these are designated as a net investment hedge \u2014 All other derivatives are not designated in a hedge relationship. The Group\u2019s fixed rate GBP debt is held as fixed rate instruments at amortised cost. The Group uses a combination of interest rate and cross currency swaps to convert its \u20ac300m EUR debt. Receive Notional Receive coupon FX rate Notional Pay coupon \u20ac100m 1.375% GBPEUR: 1.1295 \u00a387m 3.51% \u20ac181m 1.375% GBPUSD: 1.206 \u00a3160m 3.402% \u20ac19m 1.375% GBPUSD: 1.206 \u00a323m USD Libor +1.36% To create the synthetic debt positions outlined above the Group converts \u20ac100m to \u00a387m at a rate of 3.51% this is not in a hedge relationship. The remaining \u20ac200m of its EUR fixed debt is swapped to EUR floating debt via interest rate swap contracts that are in a designated fair value hedge. The EUR floating debt is then converted to GBP floating debt via cross-currency swap contracts that are in a designated fair value hedge. The GBP floating debt is then converted to USD floating debt through cross-currency swap contracts that are in a designated net investment hedging relationship. \u00a3160m of the EUR debt is finally converted to USD fixed debt via interest rate swap contracts that are not in a hedge relationship. Additionally, the Group uses FX derivatives including forwards, collars, cross-currency swaps and swaptions to create synthetic USD debt as a hedge of its USD assets and to achieve reasonable certainty of USD currency conversion rates, in line with the Group\u2019s FX hedging policy. As at 31 December 2022 the Group held FX outrights with a notional of $378m at an average rate of GBP:USD rate of 1.24. The Group\u2019s portfolio of derivatives is diversified by maturity, counterparty and type. Natural offsets between transactions within the portfolio and the designation of certain derivatives as hedges significantly reduce the risk of income statement volatility. The sensitivity of the portfolio to changes in market rates is set out in note 19. In 2021, the Group transitioned GBP exposures from GBP LIBOR to SONIA. During the year, for USD exposures the Group transitioned its RCF from USD LIBOR to SOFR, it plans to move other exposures including derivatives in the near future. The Group\u2019s risk management strategy has not changed as a result of IBOR Reform and it is considered to be immaterial to the financial statements. Fair value hedges The Group uses interest rate swaps and cross-currency swaps as fair value hedges of the Group\u2019s euro issued debt. Interest rate exposure arises from movements in the fair value of the Group\u2019s euro debt attributable to movements in euro interest rates. The hedged risk is the change in the euro bonds fair value attributable to interest rate movements. The hedged items are the Group\u2019s euro bonds which are issued at a fixed rate. The hedging instruments are fixed to floating euro interest rate swaps where the Group receives fixed interest payments and pays three-month Euribor. As the critical terms of the interest rate swaps match the bonds, there is an expectation that the value of the hedging instrument and the value of the hedged item will move equally in the opposite direction as a result of movements in the zero coupon Euribor curve. Potential sources of hedge ineffectiveness would be material changes in the credit risk of swap counterparties or a reduction or modification in the hedge item. 16. Derivative financial instruments and hedge accounting The Group\u2019s approach to the management of financial risks is set out in note 19. The Group\u2019s outstanding derivative financial instruments are as follows: All figures in \u00a3 millions 2022 2021 Gross notional amounts Assets Liabilities Gross notional amounts Assets Liabilities Interest rate derivatives \u2013 in a fair value hedge relationship 177 \u2013 (11) 168 5 \u2013 Interest rate derivatives \u2013 not in a hedge relationship 260 19 \u2013 217 \u2013 (9) Cross-currency rate derivatives \u2013 in a hedge relationship 83 34 (43) 331 24 (21) FX derivatives \u2013 in a hedge relationship 355 1 (9) 237 3 (1) FX derivatives \u2013 not in a hedge relationship 573 5 (2) 193 \u2013 (3) Total 1,448 59 (65) 1,146 32 (34) Analysed as expiring: In less than one year 1,028 16 (11) 393 2 (4) Later than one year and not later than five years 420 43 (54) 679 30 (26) Later than five years \u2013 \u2013 \u2013 74 \u2013 (4) Total 1,448 59 (65) 1,146 32 (34) A foreign currency exposure arises from foreign exchange fluctuations on translation of the Group\u2019s euro debt into GBP. The hedged risk is the risk of changes in the GBPEUR spot rate that will result in changes in the value of the euro debt when translated into GBP. The hedged items are a portion of the Group\u2019s euro bonds. The hedging instruments are floating to floating cross currency swaps which mitigates an exposure to the effect of euro strengthening against GBP within the hedge item. As the critical terms of the cross-currency swap match the bonds, there is an expectation that the value of the hedging instrument and the value of the hedged item move in the opposite direction as a result of movements in the EUR:GBP exchange rate. Potential sources of hedge ineffectiveness are a reduction or modification in the hedged item or a material change in the credit risk of swap counterparties. The Group held the following instruments to hedge exposures to changes in interest rates and foreign currency risk associated with borrowings: All figures in \u00a3 millions 2022 Carrying amount of hedging instruments Change in fair value of hedging instrument used to determine hedge ineffectiveness Nominal amounts of hedging instruments Derivative financial instruments for interest rate risk (11) (16) 177 Derivative financial instruments for currency risk 33 9 266 All figures in \u00a3 millions 2021 Carrying amount of hedging instruments Change in fair value of hedging instrument used to determine hedge ineffectiveness Nominal amounts of hedging instruments Derivative financial instruments for interest rate risk 5 (5) 168 Derivative financial instruments for currency risk 24 (20) 168 The amounts at the reporting date relating to items designated as hedge items were as follows: All figures in \u00a3 millions 2022 Carrying amount of hedged items Accumulated amount of fair value hedge adjustments on the hedged item included in the carrying amount Change in fair value of hedged item used to determine hedge ineffectiveness Hedge ineffectiveness Line item in profit or loss that includes hedge ineffectiveness Interest rate risk Financial liabilities \u2013 borrowings (167) 11 15 (1) Finance costs Currency risk Financial liabilities \u2013 borrowings (167) n/a (14) \u2013 n/a All figures in \u00a3 millions 2021 Carrying amount of hedged items Accumulated amount of fair value hedge adjustments on the hedged item included in the carrying amount Change in fair value of hedged item used to determine hedge ineffectiveness Hedge ineffectiveness Line item in profit or loss that includes hedge ineffectiveness Interest rate risk Financial liabilities \u2013 borrowings (173) (4) 5 \u2013 n/a Currency risk Financial liabilities \u2013 borrowings (173) n/a 20 \u2013 n/a Hedge of net investment in a foreign operation A foreign currency exposure arises from the translation of the Group\u2019s net investments in its subsidiaries which have USD and EUR functional currencies. The hedged risk is the risk of changes in the GBP:USD and GBP:EUR spot rates that will result in changes in the value of the Group\u2019s net investment in its USD and EUR assets when translated into GBP. The hedged items are a portion of the Group\u2019s assets which are denominated in USD and EUR. The hedging instruments are debt and derivative financial instruments, including cross-currency swaps, FX forwards (including non-deliverable forwards) and FX collars, which mitigates an exposure to the effect of a weakening USD or EUR on the hedged item against GBP. 16. Derivative financial instruments and hedge accounting continued It is expected that the change in value of each of these items will offset each other as there is a clear and direct economic relationship between the hedging instrument and the hedged item in the hedge relationship. Hedge ineffectiveness would arise if the value of the hedged items fell below the value of the hedging instruments; however, this is unlikely as the value of the Group\u2019s assets denominated in USD and EUR is significantly greater than the proposed net investment programme. The amounts related to items designated as hedging instruments were as follows: All figures in \u00a3 millions 2022 Carrying amount of hedging instruments Change in value of hedging instrument used to determine hedge ineffectiveness Nominal amounts of hedging instruments Hedging gains/(losses) recognised in OCI Hedge ineffectiveness recognised in profit or loss Derivative financial instruments (50) (31) 172 (31) \u2013 Financial liabilities \u2013 borrowings (89) (5) (88) (5) \u2013 All figures in \u00a3 millions 2021 Carrying amount of hedging instruments Change in value of hedging instrument used to determine hedge ineffectiveness Nominal amounts of hedging instruments Hedging gains/(losses) recognised in OCI Hedge ineffectiveness recognised in profit or loss Derivative financial instruments (19) (2) (400) (2) \u2013 Financial liabilities \u2013 borrowings (240) 4 (240) 4 \u2013 Included in the translation reserve is a cost of hedging reserve relating to the time value of FX collars which is not separately disclosed due to materiality. The value of that reserve will decrease over the life of the hedge transaction. The balance as at 1 January and 31 December 2022 was \u00a31m. During the year \u00a32m of hedging gains were recycled to the profit and loss on the discontinuance of the net investment hedge of our Italian business. Offsetting arrangements with derivative counterparties All of the Group\u2019s derivative financial instruments are subject to enforceable netting arrangements with individual counterparties, allowing net settlement in the event of default of either party. Derivative financial assets and liabilities subject to offsetting arrangements are as follows: All figures in \u00a3 millions 2022 2021 Gross derivative assets Gross derivative liabilities Net derivative assets/ liabilities Gross derivative assets Gross derivative liabilities Net derivative assets/ liabilities Counterparties in an asset position 30 (17) 13 17 (12) 5 Counterparties in a liability position 29 (48) (19) 15 (22) (7) Total as presented in the balance sheet 59 (65) (6) 32 (34) (2) Offset arrangements in respect of cash balances are described in note 17. Counterparty exposure from all derivatives is managed, together with that from deposits and bank account balances, within credit limits that reflect published credit ratings and by reference to other market measures (e.g. market prices for credit default swaps) to ensure that there is no significant exposure to any one counterparty\u2019s credit risk. The Group has no material embedded derivatives that are required to be separately accounted for in accordance with IFRS 9 \u2018Financial Instruments\u2019. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfHedgeAccountingExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-740": {
"value": "17. Cash and cash equivalents (excluding overdrafts) All figures in \u00a3 millions 2022 2021 Cash at bank and in hand 269 660 Short-term bank deposits 289 277 558 937 Short-term bank deposits are invested with banks and earn interest at the prevailing short-term deposit rates. At the end of 2022, the currency split of cash and cash equivalents was US dollar 31% (2021: 37%), sterling 6% (2021: 24%), and other 63% (2021: 39%). Cash and cash equivalents have fair values that approximate to their carrying value due to their short-term nature. There is no cash and cash equivalents balance classified as held for sale (2021: \u00a3nil). The Group has certain cash pooling arrangements in US dollars, sterling and Canadian dollars where both the company and the bank have a legal right of offset. Offsetting amounts are presented gross in the balance sheet. Offset arrangements in respect of derivatives are shown in note 16. For the purpose of the cash flow statement, cash and cash equivalents are \u00a3543m (2021: \u00a3937m), which includes \u00a315m (2021: \u00a3nil) of overdrafts. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-779": {
"value": "18. Financial liabilities \u2013 borrowings The Group\u2019s current and non-current borrowings are as follows: All figures in \u00a3 millions 2022 2021 Non-current 3.25% US dollar notes 2023 (nominal amount $94m) \u2013 70 1.375% Euro notes 2025 (nominal amount \u20ac300m) 257 257 3.75% GBP notes 2030 (nominal amount \u00a3350m) 353 353 Lease liabilities (see note 35) 534 565 1,144 1,245 Current (due within one year or on demand) 3.75% US dollar notes 2022 (nominal amount $117m) \u2013 87 Lease liabilities (see note 35) 71 68 Overdrafts 15 \u2013 86 155 Total borrowings 1,230 1,400 Included in the non-current borrowings above is \u00a310m of accrued interest (2021: \u00a310m). No accrued interest is included in the current borrowings above (2021: \u00a30.5m). In addition to the above, there are no non-current borrowings (2021: \u00a3nil) or current borrowings (2021: \u00a3nil) classified as held for sale. The maturities of the Group\u2019s non-current borrowings are as follows: All figures in \u00a3 millions 2022 2021 Between one and two years 72 140 Between two and five years 442 435 Over five years 630 670 1,144 1,245 The carrying amounts and market values of borrowings are as follows: All figures in \u00a3 millions 2022 2021 Effective interest rate Carrying value Market value Effective interest rate Carrying value Market value 3.75% US dollar notes 2022 n/a \u2013 \u2013 3.94% 87 87 3.25% US dollar notes 2023 n/a \u2013 \u2013 3.36% 70 71 1.375% Euro notes 2025 1.44% 257 252 1.44% 257 260 3.75% GBP notes 2030 3.93% 353 310 3.93% 353 380 Overdrafts n/a 15 15 \u2013 \u2013 \u2013 625 577 767 798 18. Financial liabilities \u2013 borrowings continued The market values stated above are based on clean market prices at the year end or, where these are not available, on the quoted market prices of comparable debt issued by other companies. The effective interest rates above relate to the underlying debt instruments. The carrying amounts of the Group\u2019s borrowings before the effect of derivatives (see notes 16 and 19 for further information on the impact of derivatives) are denominated in the following currencies: All figures in \u00a3 millions 2022 2021 US dollar 276 434 Sterling 672 674 Euro 262 268 Other 20 24 1,230 1,400 The Group had $1.19bn (\u00a30.9bn) of undrawn capacity on its committed borrowing facilities as at 31 December 2022 (2021: $1.19bn (\u00a30.9bn) undrawn). The committed borrowing facilities have subsequently been reduced to $1bn. In addition, there are a number of short-term facilities that are utilised in the normal course of business. All of the Group\u2019s borrowings are unsecured. In respect of lease obligations, the rights to the leased asset revert to the lessor in the event of default. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBorrowingsExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-741": {
"value": "18. Financial liabilities \u2013 borrowings The Group\u2019s current and non-current borrowings are as follows: All figures in \u00a3 millions 2022 2021 Non-current 3.25% US dollar notes 2023 (nominal amount $94m) \u2013 70 1.375% Euro notes 2025 (nominal amount \u20ac300m) 257 257 3.75% GBP notes 2030 (nominal amount \u00a3350m) 353 353 Lease liabilities (see note 35) 534 565 1,144 1,245 Current (due within one year or on demand) 3.75% US dollar notes 2022 (nominal amount $117m) \u2013 87 Lease liabilities (see note 35) 71 68 Overdrafts 15 \u2013 86 155 Total borrowings 1,230 1,400 Included in the non-current borrowings above is \u00a310m of accrued interest (2021: \u00a310m). No accrued interest is included in the current borrowings above (2021: \u00a30.5m). In addition to the above, there are no non-current borrowings (2021: \u00a3nil) or current borrowings (2021: \u00a3nil) classified as held for sale. The maturities of the Group\u2019s non-current borrowings are as follows: All figures in \u00a3 millions 2022 2021 Between one and two years 72 140 Between two and five years 442 435 Over five years 630 670 1,144 1,245 The carrying amounts and market values of borrowings are as follows: All figures in \u00a3 millions 2022 2021 Effective interest rate Carrying value Market value Effective interest rate Carrying value Market value 3.75% US dollar notes 2022 n/a \u2013 \u2013 3.94% 87 87 3.25% US dollar notes 2023 n/a \u2013 \u2013 3.36% 70 71 1.375% Euro notes 2025 1.44% 257 252 1.44% 257 260 3.75% GBP notes 2030 3.93% 353 310 3.93% 353 380 Overdrafts n/a 15 15 \u2013 \u2013 \u2013 625 577 767 798 18. Financial liabilities \u2013 borrowings continued The market values stated above are based on clean market prices at the year end or, where these are not available, on the quoted market prices of comparable debt issued by other companies. The effective interest rates above relate to the underlying debt instruments. The carrying amounts of the Group\u2019s borrowings before the effect of derivatives (see notes 16 and 19 for further information on the impact of derivatives) are denominated in the following currencies: All figures in \u00a3 millions 2022 2021 US dollar 276 434 Sterling 672 674 Euro 262 268 Other 20 24 1,230 1,400 The Group had $1.19bn (\u00a30.9bn) of undrawn capacity on its committed borrowing facilities as at 31 December 2022 (2021: $1.19bn (\u00a30.9bn) undrawn). The committed borrowing facilities have subsequently been reduced to $1bn. In addition, there are a number of short-term facilities that are utilised in the normal course of business. All of the Group\u2019s borrowings are unsecured. In respect of lease obligations, the rights to the leased asset revert to the lessor in the event of default. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-742": {
"value": "19. Financial risk management The Group\u2019s approach to the management of financial risks together with sensitivity analyses of its financial instruments is set out below. Treasury policy Pearson\u2019s treasury policies set out the Group\u2019s principles for addressing key financial risks including capital risk, liquidity risk, foreign exchange risk and interest rate risk, and sets out measurable targets for each. The Audit Committee receives quarterly reports incorporating compliance with measurable targets and reviews and approves any changes to treasury policies annually. The treasury function is permitted to use derivatives where their use reduces a risk or allows a transaction to be undertaken more cost effectively. Derivatives permitted include swaps, forwards and collars to manage foreign exchange and interest rate risk, with foreign exchange swap and forward contracts the most commonly executed. Speculative transactions are not permitted. Capital risk The Group\u2019s objectives when managing capital are: \u2014 To maintain a strong balance sheet and a solid investment grade rating; \u2014 To continue to invest in the business organically and through acquisitions; and \u2014 To have a sustainable and progressive dividend policy. At 31 December 2022 the Group and its bonds were rated BBB- (stable outlook) with Fitch Ratings Limited and Baa3 (stable outlook) with Moody\u2019s Investor Services. Net debt The Group\u2019s net debt position is set out below: All figures in \u00a3 millions 2022 2021 Cash and cash equivalents 558 937 Overdrafts (15) \u2013 Derivative financial instruments (6) (2) Bonds (610) (767) Investment in finance lease receivable 121 115 Lease liabilities (605) (633) Net debt (557) (350) There are no balances held for sale as at 31 December 2022 or 31 December 2021. Interest and foreign exchange rate management The Group\u2019s principal currency exposure is to the US dollar which represents almost 70% of the Group\u2019s sales. The Group\u2019s long-term debt is primarily held in US dollars to provide a natural hedge of this exposure, which is achieved through issued US dollar debt or converting euro debt to US dollars using cross-currency swaps, forwards and collars. As at 31 December 2022 and 2021, the Group\u2019s debt of \u00a31,230m (2021: \u00a31,400m) is all held at fixed rates. See note 16 for details of the Group\u2019s hedging programme which addresses interest rate risk and foreign currency risk. Overseas profits are converted to sterling to satisfy sterling cash outflows such as dividends at the prevailing spot rate at the time of the transaction. To the extent the Group has sufficient sterling, US dollars may be held as dollar cash to provide a natural offset to the Group\u2019s debt or to satisfy future US dollar cash outflows. The Group does not have significant cross-border foreign exchange transactional exposures. As at 31 December 2022, the sensitivity of the carrying value of the Group\u2019s financial instruments to fluctuations in interest rates and exchange rates is as follows: All figures in \u00a3 millions 2022 Carrying value Impact of 1% increase in interest rates Impact of 1% decrease in interest rates Impact of 10% strengthening in sterling Impact of 10% weakening in sterling Investments in unlisted securities 133 \u2013 \u2013 (10) 12 Other receivable 3 \u2013 \u2013 \u2013 \u2013 Cash and cash equivalents 558 \u2013 \u2013 (25) 31 Derivative financial instruments (6) 7 (6) (10) 12 Bonds (610) 4 (4) 24 (30) Other borrowings (620) \u2013 \u2013 26 (32) Investment in finance lease receivable 121 \u2013 \u2013 (11) 13 Deferred and contingent consideration (79) \u2013 \u2013 4 (5) Other net financial assets 477 \u2013 \u2013 (38) 47 Total (23) 11 (10) (40) 48 All figures in \u00a3 millions 2021 Carrying value Impact of 1% increase in interest rates Impact of 1% decrease in interest rates Impact of 10% strengthening in sterling Impact of 10% weakening in sterling Investments in unlisted securities 113 \u2013 \u2013 (9) 11 Other receivable 87 \u2013 \u2013 (8) 10 Cash and cash equivalents 937 \u2013 \u2013 (43) 53 Derivative financial instruments (2) 6 (6) (1) 1 Bonds (767) 5 (5) 37 (45) Other borrowings (633) \u2013 \u2013 57 (70) Investment in finance lease receivable 115 \u2013 \u2013 (11) 13 Other net financial assets 503 \u2013 \u2013 (42) 51 Total 353 11 (11) (20) 24 The table above shows the sensitivities of the fair values of each class of financial instrument to an isolated change in either interest rates or foreign exchange rates. Other net financial assets comprise trade receivables less trade payables. A significant proportion of the movements shown above would impact equity rather than the income statement due to the location and functional currency of the entities in which they arise and the availability of net investment hedging. The Group\u2019s income statement is reported at average rates for the year while the balance sheet is translated at the year-end closing rate. Differences between these rates can distort ratio calculations such as debt to EBITDA and interest cover. Adjusted operating profit translated at year-end closing rates would be \u00a39m higher (2021: \u00a36m higher) than the reported figure of \u00a3456m (2021: \u00a3385m) at \u00a3465m (2021: \u00a3391m). Adjusted EBITDA translated at year-end closing rates would be \u00a312m higher (2021: \u00a38m higher) than the reported figure of \u00a3667m (2021: \u00a3598m) at \u00a3679m (2021: \u00a3606m). 19. Financial risk management continued Liquidity and refinancing risk management The Group regularly reviews the level of cash and debt facilities required to fund its activities. This involves preparing a prudent cash flow forecast for the next three to five years, determining the level of debt facilities required to fund the business, planning for shareholder returns and repayments of maturing debt, and identifying an appropriate amount of headroom to provide a reserve against unexpected outflows. At 31 December 2022, the Group had cash of \u00a30.5bn (2021: \u00a30.9bn) and no outstanding drawings (2021: \u00a3nil) on the US dollar denominated revolving credit facility due 2026 of $1.19bn (2021: $1.19bn). The $1.19bn facility contains interest cover and leverage covenants which the Group has complied with for the year ended 31 December 2022. The maturity of the carrying values of the Group\u2019s borrowings and trade payables are set out in notes 18 and 24 respectively. At the end of 2022, the currency split of the Group\u2019s trade payables was US dollar \u00a3234m (2021: \u00a3199m), sterling \u00a371m (2021: \u00a376m) and other currencies \u00a343m (2021: \u00a376m). Trade payables are all due within one year (2021: all due within one year). The table below analyses the Group\u2019s bonds and derivative assets and liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. Short dated derivative instruments have not been included in this table. The amounts disclosed in the table are the contractual undiscounted cash flows (including interest) and as such may differ from the amounts disclosed on the balance sheet. Any cash flows based on a floating rate are calculated using interest rates as set at the date of the last rate reset. Where this is not possible, floating rates are based on interest rates prevailing at 31 December in the relevant year. Financial counterparty and credit risk management Financial counterparty and credit risk arises from cash and cash equivalents, favourable derivative financial instruments and deposits with banks and financial institutions, as well as credit exposures to customers, including outstanding receivables. Counterparty credit limits, which take published credit rating and other factors into account, are set to cover the Group\u2019s total aggregate exposure to a single financial institution. The limits applicable to published credit rating bands are approved by the Chief Financial Officer within guidelines approved by the Board. Exposures and limits applicable to each financial institution are reviewed on a regular basis. All figures in \u00a3 millions Analysed by maturity Total Analysed by currency Total Greater than one month and less than one year Later than one year but less than five years Five years or more USD GBP Other At 31 December 2022 Bonds \u2013 342 389 731 \u2013 455 276 731 Rate derivatives \u2013 inflows (11) (471) \u2013 (482) (24) (170) (288) (482) Rate derivatives \u2013 outflows 1 490 \u2013 491 224 255 12 491 FX forwards \u2013 inflows (304) \u2013 \u2013 (304) \u2013 (304) \u2013 (304) FX forwards \u2013 outflows 313 \u2013 \u2013 313 \u2013 313 \u2013 313 Total (1) 361 389 749 200 549 \u2013 749 At 31 December 2021 Bonds 107 386 403 896 162 468 266 896 Rate derivatives \u2013 inflows (7) (331) \u2013 (338) (9) (150) (179) (338) Rate derivatives \u2013 outflows 12 339 4 355 203 150 2 355 FX forwards \u2013 inflows (148) \u2013 \u2013 (148) \u2013 (148) \u2013 (148) FX forwards \u2013 outflows 148 \u2013 \u2013 148 90 \u2013 58 148 Total 112 394 407 913 446 320 147 913 Cash deposits and derivative transactions are made with approved counterparties up to pre-agreed limits. To manage counterparty risk associated with cash and cash equivalents, the Group uses a mixture of money market funds as well as bank deposits. As at 31 December 2022, 77% (2021: 81%) of cash and cash equivalents was held with investment grade bank counterparties, 8% (2021: 9%) with AAA money market funds and 15% (2021: 10%) with non-investment grade bank counterparties. For trade receivables and contract assets, the Group\u2019s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, risk associated with the industry and country in which customers operate may also influence the credit risk. The credit quality of customers is assessed by taking into account financial position, past experience and other relevant factors. Individual credit limits are set for each customer based on internal ratings. The compliance with credit limits is regularly monitored by the Group. A default on a trade receivable is when the counterparty fails to make contractual payments within the stated payment terms. Trade receivables and contract assets are written off when there is no reasonable expectation of recovery. The carrying amounts of financial assets, trade receivables and contract assets represent the maximum credit exposure. Trade receivables and contract assets are subject to impairment using the expected credit loss model. The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected credit loss allowance for all trade receivables and contract assets. To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk characteristics and the days past due. See note 22 for further details about trade receivables and contract assets including movements in provisions for bad and doubtful debts.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-780": {
"value": "Treasury policy Pearson\u2019s treasury policies set out the Group\u2019s principles for addressing key financial risks including capital risk, liquidity risk, foreign exchange risk and interest rate risk, and sets out measurable targets for each. The Audit Committee receives quarterly reports incorporating compliance with measurable targets and reviews and approves any changes to treasury policies annually. The treasury function is permitted to use derivatives where their use reduces a risk or allows a transaction to be undertaken more cost effectively. Derivatives permitted include swaps, forwards and collars to manage foreign exchange and interest rate risk, with foreign exchange swap and forward contracts the most commonly executed. Speculative transactions are not permitted. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTreasurySharesExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-781": {
"value": "Capital risk The Group\u2019s objectives when managing capital are: \u2014 To maintain a strong balance sheet and a solid investment grade rating; \u2014 To continue to invest in the business organically and through acquisitions; and \u2014 To have a sustainable and progressive dividend policy. At 31 December 2022 the Group and its bonds were rated BBB- (stable outlook) with Fitch Ratings Limited and Baa3 (stable outlook) with Moody\u2019s Investor Services. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-782": {
"value": "Liquidity and refinancing risk management The Group regularly reviews the level of cash and debt facilities required to fund its activities. This involves preparing a prudent cash flow forecast for the next three to five years, determining the level of debt facilities required to fund the business, planning for shareholder returns and repayments of maturing debt, and identifying an appropriate amount of headroom to provide a reserve against unexpected outflows. At 31 December 2022, the Group had cash of \u00a30.5bn (2021: \u00a30.9bn) and no outstanding drawings (2021: \u00a3nil) on the US dollar denominated revolving credit facility due 2026 of $1.19bn (2021: $1.19bn). The $1.19bn facility contains interest cover and leverage covenants which the Group has complied with for the year ended 31 December 2022. The maturity of the carrying values of the Group\u2019s borrowings and trade payables are set out in notes 18 and 24 respectively. At the end of 2022, the currency split of the Group\u2019s trade payables was US dollar \u00a3234m (2021: \u00a3199m), sterling \u00a371m (2021: \u00a376m) and other currencies \u00a343m (2021: \u00a376m). Trade payables are all due within one year (2021: all due within one year). The table below analyses the Group\u2019s bonds and derivative assets and liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. Short dated derivative instruments have not been included in this table. The amounts disclosed in the table are the contractual undiscounted cash flows (including interest) and as such may differ from the amounts disclosed on the balance sheet. Any cash flows based on a floating rate are calculated using interest rates as set at the date of the last rate reset. Where this is not possible, floating rates are based on interest rates prevailing at 31 December in the relevant year. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-783": {
"value": "Financial counterparty and credit risk management Financial counterparty and credit risk arises from cash and cash equivalents, favourable derivative financial instruments and deposits with banks and financial institutions, as well as credit exposures to customers, including outstanding receivables. Counterparty credit limits, which take published credit rating and other factors into account, are set to cover the Group\u2019s total aggregate exposure to a single financial institution. The limits applicable to published credit rating bands are approved by the Chief Financial Officer within guidelines approved by the Board. Exposures and limits applicable to each financial institution are reviewed on a regular basis. All figures in \u00a3 millions Analysed by maturity Total Analysed by currency Total Greater than one month and less than one year Later than one year but less than five years Five years or more USD GBP Other At 31 December 2022 Bonds \u2013 342 389 731 \u2013 455 276 731 Rate derivatives \u2013 inflows (11) (471) \u2013 (482) (24) (170) (288) (482) Rate derivatives \u2013 outflows 1 490 \u2013 491 224 255 12 491 FX forwards \u2013 inflows (304) \u2013 \u2013 (304) \u2013 (304) \u2013 (304) FX forwards \u2013 outflows 313 \u2013 \u2013 313 \u2013 313 \u2013 313 Total (1) 361 389 749 200 549 \u2013 749 At 31 December 2021 Bonds 107 386 403 896 162 468 266 896 Rate derivatives \u2013 inflows (7) (331) \u2013 (338) (9) (150) (179) (338) Rate derivatives \u2013 outflows 12 339 4 355 203 150 2 355 FX forwards \u2013 inflows (148) \u2013 \u2013 (148) \u2013 (148) \u2013 (148) FX forwards \u2013 outflows 148 \u2013 \u2013 148 90 \u2013 58 148 Total 112 394 407 913 446 320 147 913 Cash deposits and derivative transactions are made with approved counterparties up to pre-agreed limits. To manage counterparty risk associated with cash and cash equivalents, the Group uses a mixture of money market funds as well as bank deposits. As at 31 December 2022, 77% (2021: 81%) of cash and cash equivalents was held with investment grade bank counterparties, 8% (2021: 9%) with AAA money market funds and 15% (2021: 10%) with non-investment grade bank counterparties. For trade receivables and contract assets, the Group\u2019s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, risk associated with the industry and country in which customers operate may also influence the credit risk. The credit quality of customers is assessed by taking into account financial position, past experience and other relevant factors. Individual credit limits are set for each customer based on internal ratings. The compliance with credit limits is regularly monitored by the Group. A default on a trade receivable is when the counterparty fails to make contractual payments within the stated payment terms. Trade receivables and contract assets are written off when there is no reasonable expectation of recovery. The carrying amounts of financial assets, trade receivables and contract assets represent the maximum credit exposure. Trade receivables and contract assets are subject to impairment using the expected credit loss model. The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected credit loss allowance for all trade receivables and contract assets. To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk characteristics and the days past due. See note 22 for further details about trade receivables and contract assets including movements in provisions for bad and doubtful debts. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCreditRiskExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-792": {
"value": "20. Intangible assets \u2013 product development All figures in \u00a3 millions 2022 2021 Cost At 1 January 2,698 2,514 Exchange differences 235 \u2013 Additions 357 287 Disposals and retirements (191) (92) Disposal of subsidiary (note 31) (186) (9) Transfers 5 (2) At 31 December 2,918 2,698 Amortisation At 1 January (1,804) (1,609) Exchange differences (174) (3) Charge for the year (288) (260) Impairment (15) (19) Disposals and retirements 191 92 Disposal of subsidiary (note 31) 147 3 Transfers \u2013 (8) At 31 December (1,943) (1,804) Carrying amounts at 31 December 975 894 Product development assets are amortised over their estimated useful economic lives. Product development assets relating to content are amortised over seven years or less, being an estimate of the expected operating lifecycle of the title, with a higher proportion of the amortisation taken in the earlier years. Product development assets relating to product platforms are amortised over 10 years or less. Amortisation is included in the income statement in cost of goods sold. Product development assets are assessed for impairment triggers on an annual basis or when triggering events occur. In 2022, of the \u00a315m (2021: \u00a319m) impairment charges, \u00a313m (2021: \u00a314m; 2020: \u00a3nil) have been recognised as a result of asset write-offs related to the major restructuring programme. The full annual impairment test showed that there is adequate headroom across all product development assets and accordingly no further impairment charges were recognised in 2022 (2021: \u00a3nil; 2020: \u00a3nil). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfResearchAndDevelopmentExpenseExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-743": {
"value": "21. Inventories All figures in \u00a3 millions 2022 2021 Raw materials 5 7 Work in progress 2 2 Finished goods 93 84 Returns asset 5 5 105 98 The cost of inventories recognised as an expense and included in the income statement in cost of goods sold amounted to \u00a3166m (2021: \u00a3171m; 2020: \u00a3219m) including \u00a316m (2021: \u00a322m; 2020: \u00a341m) of inventory provisions. None of the inventory is pledged as security. Included within the inventory balance is the estimation of the right to receive goods from contracts with customers via returns. The value of the returns asset is measured at the carrying amount of the assets at the time of sale aligned to the Group\u2019s normal inventory valuation methodology less any expected costs to recover the asset and any expected reduction in value. Impairment charges against the inventory returns asset are \u00a3nil in 2022 (2021: \u00a3nil; 2020: \u00a3nil). The returns asset all relates to finished goods. The obsolescence provision takes account of the Group\u2019s digital first strategy and the increasing shift towards print on demand. The year-on-year reduction in inventories is due to increased provisions for obsolescence and a reduction in the production of inventory due to the Group\u2019s digital first strategy and the increasing shift towards print on demand. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInventoriesExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-744": {
"value": "22. Trade and other receivables All figures in \u00a3 millions 2022 2021 Current Trade receivables 824 853 Royalty advances 1 2 Prepayments 200 198 Investment in finance lease receivable 17 15 Accrued income 15 14 Other receivables 82 175 1,139 1,257 Non-current Trade receivables 1 1 Royalty advances 5 5 Prepayments 12 10 Investment in finance lease receivable 104 100 Accrued income 2 1 Interest receivable 3 8 Other receivables 12 4 139 129 Accrued income represents contract assets which are unbilled amounts generally resulting from assessments and services revenue streams where revenue to be recognised over time has been recognised in excess of customer billings to date. Impairment charges on accrued income assets are \u00a3nil (2021: \u00a3nil). The carrying value of the Group\u2019s trade and other receivables approximates its fair value. Trade receivables are stated net of provisions for bad and doubtful debts. In addition to the above, there are trade receivables of \u00a3nil (2021: nil) classified as held for sale (see note 32). The movements in the provision for bad and doubtful debts are as follows: All figures in \u00a3 millions 2022 2021 At beginning of year (63) (74) Exchange differences (3) \u2013 Income statement movements (18) (15) Utilised 12 26 Disposal of subsidiary 3 \u2013 At end of year (69) (63) Concentrations of credit risk with respect to trade receivables are limited due to the Group\u2019s large number of customers, who are internationally dispersed. The ageing of the Group\u2019s gross trade receivables is as follows: All figures in \u00a3 millions 2022 2021 Within due date and one month past due date 663 766 One to three months past due date 118 58 Three to six months past due date 25 20 Six to nine months past due date 14 13 Nine to 12 months past due date 14 5 More than 12 months past due date 60 55 Gross trade receivables 894 917 The Group reviews its bad debt provision at least twice a year following a detailed review of receivable balances, historical payment profiles, and assessment of relevant forward-looking risk factors including macroeconomic trends. Management believes all the remaining receivable balances are fully recoverable. The decrease in trade receivables held by the Group is driven by current year disposals. Other current receivables have decreased due to the receipt of deferred proceeds in relation to the US K-12 disposal. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-745": {
"value": "23. Provisions for other liabilities and charges All figures in \u00a3 millions Property Disposals and closures Legal and other Total At 1 January 2022 15 2 30 47 Exchange differences \u2013 \u2013 4 4 Provisions made during the year 9 \u2013 78 87 Provisions reversed during the year (1) \u2013 (6) (7) Provisions used during the year (1) \u2013 (30) (31) Disposal of subsidiary \u2013 \u2013 (1) (1) At 31 December 2022 22 2 75 99 Analysis of provisions: All figures in \u00a3 millions 2022 Property Disposals and closures Legal and other Total Current 9 2 74 85 Non-current 13 \u2013 1 14 22 2 75 99 2021 Current 11 2 27 40 Non-current 4 \u2013 3 7 15 2 30 47 Property provisions in 2022 and 2021 relate to the simplification of the Group\u2019s property portfolio (see note 4). Disposals and closures relate to the disposal of the Pearson Institute of Higher Education. Legal and other includes legal claims, contract disputes and potential contract losses with the provisions utilised as the cases are settled. Also included in legal and other are other restructuring provisions that are generally utilised within one year. The year on year increase in provisions is mainly due to the 2022 restructuring programme (see note 4). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfProvisionsExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-746": {
"value": "24. Trade and other liabilities All figures in \u00a3 millions 2022 2021 Current Trade payables 348 351 Sales return liability 53 83 Deferred income 340 330 Interest payable 10 42 Accruals and other liabilities 503 450 1,254 1,256 Non-current Deferred income 60 56 Accruals and other liabilities 60 39 120 95 The carrying value of the Group\u2019s trade and other liabilities approximates its fair value. The deferred income balance comprises contract liabilities in respect of advance payments in assessment, testing and training businesses; subscription income in school and college businesses; and obligations to deliver digital content in future periods. In addition to the above, there are accruals of \u00a3nil (2021: \u00a3nil) and deferred income of \u00a3nil (2021; \u00a3nil) classified as held for sale (see note 32). The increase in trade and other liabilities held by the Group is driven by an increase in accruals related to severance arising from the 2022 restructuring programme and the recognition of deferred consideration in relation to acquisitions made in 2022. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-747": {
"value": "25. Retirement benefit and other post-retirement obligations Background The Group operates a number of defined benefit and defined contribution retirement plans throughout the world. The largest plan is the Pearson Pension Plan (UK Group plan) in the UK, which is sectionalised to provide both defined benefit and defined contribution pension benefits. The defined benefit section was largely closed to new members from 1 November 2006. The defined contribution section, opened in 2003, is open to new and existing employees. Finally, there is a separate section within the UK Group plan set up for auto-enrolment. The defined benefit section of the UK Group plan is a final salary pension plan which provides benefits to members in the form of a guaranteed level of pension payable for life. The level of benefits depends on the length of service and final pensionable pay. The defined contribution section of the UK Group plan operates a Reference Scheme Test (RST) pension underpin for its members. Where a member\u2019s fund value is insufficient to purchase the RST pension upon retirement, the UK Group plan is liable for the shortfall to cover the member\u2019s RST pension. In addition, in recent years, the scheme rules were amended to enable members who have sufficient funds to purchase an RST pension the ability to convert their fund value into a pension in the UK Group plan as an alternative to purchasing an annuity with an insurer. The Group recognises any assets and liabilities relating to these features of the defined contribution section as part of the overall UK Group plan obligation. From 1 January 2021, the Group also recognised the assets and liabilities for all members of the defined contribution section of the UK Group plan, accounting for the whole defined contribution section as a defined benefit scheme under IAS 19 \u2018Employee Benefits\u2019 as there is a risk the underpin will require the Group to pay further contributions to the scheme. The UK Group plan is funded with benefit payments from trustee-administered funds. The UK Group plan is administered in accordance with the Trust Deed and Rules in the interests of its beneficiaries by Pearson Pension Trustee Limited. At 31 December 2022, the UK Group plan had approximately 26,500 members, analysed in the following table: All figures in % Active Deferred Pensioners Total Defined benefit \u2013 16 33 49 Defined contribution 12 39 \u2013 51 Total 12 55 33 100 The other major defined benefit plans are based in the US. These are also final salary pension plans which provide benefits to members in the form of a guaranteed pension payable for life, with the level of benefits dependent on length of service and final pensionable pay. The majority of the US plans are fully funded. The Group also has several post-retirement medical benefit plans (PRMBs), principally in the US. PRMBs are unfunded but are accounted for and valued similarly to defined benefit pension plans. The defined benefit schemes expose the Group to actuarial risks, such as life expectancy, inflation risks and investment risk including asset volatility and changes in bond yields. The Group is not exposed to any unusual, entity-specific or plan-specific risks. KJ Key judgements Whether the Group will be eligible to receive the surplus associated with the UK Group Pension Plan in recognising a pension asset. KE Key areas of estimation The determination of the pension cost and defined benefit obligation of the Group\u2019s defined benefit pension schemes depends on the selection of certain assumptions, which include the discount rate, inflation rate, salary growth and longevity. Assumptions The principal assumptions used for the UK Group plan and the US PRMB are shown below. Weighted average assumptions have been shown for the other plans, which primarily relate to US pension plans. All figures in % 2022 2021 2020 UK Group plan Other plans PRMB UK Group plan Other plans PRMB UK Group plan Other plans PRMB Inflation 3.4 2.0 \u2013 3.3 1.4 \u2013 2.9 0.6 \u2013 Rate used to discount plan liabilities 4.9 5.3 5.3 1.9 2.8 2.6 1.4 2.2 2.1 Expected rate of increase in salaries 3.9 2.9 \u2013 3.8 2.7 \u2013 3.4 2.2 \u2013 Expected rate of increase for pensions in payment and deferred pensions 1.95 to 5.20 \u2013 \u2013 2.35 to 5.10 \u2013 \u2013 2.05 to 5.05 \u2013 \u2013 Initial rate of increase in healthcare rate \u2013 \u2013 6.5 \u2013 \u2013 6.3 \u2013 \u2013 6.5 Ultimate rate of increase in healthcare rate \u2013 \u2013 5.0 \u2013 \u2013 5.0 \u2013 \u2013 5.0 The UK discount rate is based on corporate bond yields adjusted to reflect the duration of liabilities. The inflation rate for the UK Group plan of 3.4% (2021: 3.3%) reflects the RPI rate. In line with changes to legislation in 2010, certain benefits have been calculated with reference to CPI as the inflationary measure and in these instances a rate of 2.7% (2021: 2.6%) has been used. The CPI rate is determined as a weighted average deduction from the RPI rate, and allows for the expected change to the formula for calculating RPI to be in line with CPIH from 2030 onwards. For the UK Group plan, the mortality base table assumptions are derived from the SAPS S3 for males and females, adjusted to reflect the observed experience of the plan, with CMI model improvement factors. A 1.5% long-term rate improvement on the CMI 2021 model is applied for both males and females, with a weighting to 2021 mortality experience in the CMI model of 10% to make an approximate allowance for the impact of the COVID-19 pandemic. The analysis of experience, and standard tables, do not reflect the impact of the ongoing COVID-19 pandemic, the ultimate impact of which remains uncertain. For the US plans, a mortality table (Pri \u2013 2012) and 2021 improvement scale (MP \u2013 2021) with generational projection for male and female annuitants has been adopted. Using the above tables, the remaining average life expectancy in years of a pensioner retiring at age 65 on the balance sheet date for the UK Group plan and US plans is as follows: All figures in years UK US 2022 2021 2020 2022 2021 2020 Male 22.5 22.6 24.0 20.6 20.5 20.4 Female 24.7 24.8 24.3 22.6 22.5 22.4 The remaining average life expectancy in years of a pensioner retiring at age 65, 20 years after the balance sheet date, for the UK and US Group plans is as follows: All figures in years UK US 2022 2021 2020 2022 2021 2020 Male 24.1 24.2 25.6 22.1 22.0 21.9 Female 26.4 26.5 26.1 24.0 23.9 23.8 Although the Group anticipates that plan surpluses will be utilised during the life of the plan to address member benefits, the Group recognises it\u2019s pension surplus in full in respect of the UK Group plan on the basis that it is management\u2019s judgement that there are no substantive restrictions on the return of residual plan assets in the event of a winding up of the plan after all member obligations have been met. 25. Retirement benefit and other post-retirement obligations continued Financial statement information The amounts recognised in the income statement are as follows: All figures in \u00a3 millions 2022 UK Group plan Defined benefit other Sub-total Defined contribution PRMB Total Current service cost 17 2 19 46 \u2013 65 Past service cost 3 \u2013 3 \u2013 \u2013 3 Administration expenses 7 \u2013 7 \u2013 \u2013 7 Total operating expense 27 2 29 46 \u2013 75 Interest on plan assets (77) (3) (80) \u2013 \u2013 (80) Interest on plan liabilities 67 3 70 \u2013 1 71 Net finance (income)/expense (10) \u2013 (10) \u2013 1 (9) Net income statement charge 17 2 19 46 1 66 All figures in \u00a3 millions 2021 UK Group plan Defined benefit other Sub-total Defined contribution PRMB Total Current service cost 17 2 19 37 \u2013 56 Past service cost \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Administration expenses 6 \u2013 6 \u2013 \u2013 6 Total operating expense 23 2 25 37 \u2013 62 Interest on plan assets (55) (2) (57) \u2013 \u2013 (57) Interest on plan liabilities 49 3 52 \u2013 1 53 Net finance (income)/expense (6) 1 (5) \u2013 1 (4) Net income statement charge 17 3 20 37 1 58 All figures in \u00a3 millions 2020 UK Group plan Defined benefit other Sub-total Defined contribution PRMB Total Current service cost 6 2 8 47 \u2013 55 Past service cost 1 \u2013 1 \u2013 \u2013 1 Curtailments \u2013 (1) (1) \u2013 \u2013 (1) Administration expenses 5 \u2013 5 \u2013 \u2013 5 Total operating expense 12 1 13 47 \u2013 60 Interest on plan assets (66) (3) (69) \u2013 \u2013 (69) Interest on plan liabilities 57 5 62 \u2013 1 63 Net finance (income)/expense (9) 2 (7) \u2013 1 (6) Net income statement charge 3 3 6 47 1 54 The amounts recognised in the balance sheet are as follows: All figures in \u00a3 millions 2022 2021 UK Group plan Other funded plans Other unfunded plans Total UK Group plan Other funded plans Other unfunded plans Total Fair value of plan assets 3,088 104 \u2013 3,192 4,125 120 \u2013 4,245 Present value of defined benefit obligation (2,514) (106) (17) (2,637) (3,588) (123) (20) (3,731) Net pension asset/(liability) 574 (2) (17) 555 537 (3) (20) 514 Other post-retirement medical benefit obligation (25) (34) Other pension accruals (10) (9) Net retirement benefit asset 520 471 Analysed as: Retirement benefit assets 581 537 Retirement benefit obligations (61) (66) The following gains/(losses) have been recognised in other comprehensive income: All figures in \u00a3 millions 2022 2021 2020 Amounts recognised for defined benefit plans 44 145 (24) Amounts recognised for post-retirement medical benefit plans 10 4 1 Total recognised in year 54 149 (23) The fair value of plan assets comprises the following: All figures in % 2022 2021 UK Group plan Other funded plans Total UK Group plan Other funded plans Total Insurance 33 \u2013 33 35 \u2013 35 Equities 15 1 16 11 1 12 Fixed interest securities 7 2 9 7 2 9 Property 6 \u2013 6 5 \u2013 5 Pooled asset investment funds (including LDI) 22 \u2013 22 30 \u2013 30 Other 14 \u2013 14 9 \u2013 9 The plan assets do not include any of the Group\u2019s own financial instruments, or any property occupied by the Group. The table below further disaggregates the plan assets into those assets which have a quoted market price in an active market and those that do not: All figures in % 2022 2021 Quoted market price No quoted market price Quoted market price No quoted market price Insurance 33 \u2013 35 \u2013 Equities 16 \u2013 11 1 Fixed-interest securities 9 \u2013 9 \u2013 Property \u2013 6 \u2013 5 Pooled asset investment funds (including LDI) 22 \u2013 30 \u2013 Other 1 13 \u2013 9 Total 81 19 85 15 25. Retirement benefit and other post-retirement obligations continued Financial statement information continued The liquidity profile of the UK Group plan assets is as follows: All figures in % 2022 2021 Liquid \u2013 call <1 month 47 51 Less liquid \u2013 call 1\u20133 months 2 \u2013 Illiquid \u2013 call >3 months 51 49 Changes in the values of plan assets and liabilities of the retirement benefit plans are as follows: All figures in \u00a3 millions 2022 2021 UK Group plan Other plans Total UK Group plan Other plans Total Fair value of plan assets Opening fair value of plan assets 4,125 120 4,245 3,588 119 3,707 Recognition of Money Purchase assets \u2013 \u2013 \u2013 513 \u2013 513 Exchange differences \u2013 12 12 \u2013 2 2 Interest on plan assets 77 3 80 55 2 57 Return on plan assets excluding interest (1,000) (18) (1,018) 71 6 77 Contributions by employer 15 2 17 14 1 15 Benefits paid (136) (15) (151) (123) (10) (133) Contributions by employees 7 \u2013 7 7 \u2013 7 Closing fair value of plan assets 3,088 104 3,192 4,125 120 4,245 Present value of defined benefit obligation Opening defined benefit obligation (3,588) (143) (3,731) (3,178) (156) (3,334) Recognition of Money Purchase liabilities \u2013 \u2013 \u2013 (513) \u2013 (513) Exchange differences \u2013 (14) (14) \u2013 (1) (1) Disposals \u2013 1 1 \u2013 \u2013 \u2013 Current service cost (17) (2) (19) (17) (2) (19) Past service cost (3) \u2013 (3) \u2013 \u2013 \u2013 Administration expenses (7) \u2013 (7) (6) \u2013 (6) Interest on plan liabilities (67) (3) (70) (49) (3) (52) Actuarial (losses)/gains \u2013 experience (25) (2) (27) (100) 3 (97) Actuarial gains/(losses) \u2013 demographic 14 \u2013 14 (1) \u2013 (1) Actuarial gains \u2013 financial 1,050 25 1,075 160 6 166 Contributions by employees (7) \u2013 (7) (7) \u2013 (7) Benefits paid 136 15 151 123 10 133 Closing defined benefit obligation (2,514) (123) (2,637) (3,588) (143) (3,731) From 1 January 2021, the Group has recognised the assets and liabilities for all members of the defined contribution section of the UK Group plan, accounting for the whole defined contribution section as a defined benefit scheme under IAS 19 \u2018Employee Benefits\u2019. The net impact on the balance sheet was \u00a3nil, however, the gross amounts of \u00a3513m can be seen in the table above. Subsequent movements to those assets and liabilities are included in the relevant lines in the table above. The weighted average duration of the defined benefit obligation is 13 years for the UK and six years for the US. Changes in the value of the US PRMB are as follows: All figures in \u00a3 millions 2022 2021 Opening defined benefit obligation (34) (39) Exchange differences (3) (1) Interest on plan liabilities (1) (1) Actuarial gains \u2013 experience 5 2 Actuarial gains \u2013 financial 5 2 Benefits paid 3 3 Closing defined benefit obligation (25) (34) Funding The UK Group plan is self-administered with the plan\u2019s assets being held independently of the Group in trust. The trustee of the UK Group plan is required to act in the best interest of the plan\u2019s beneficiaries. The most recent triennial actuarial valuation for funding purposes was completed as at 1 January 2021 and this valuation revealed a technical provision funding surplus of \u00a3160m. The UK Group plan expects to be able to provide benefits (in accordance with the plan rules) with a very low level of reliance on future funding from the Group. Assets of the UK Group plan are divided into two main elements: liability matching assets and return seeking assets. The UK Group plan\u2019s investment strategy allocates approximately 95% to matching assets and 5% to return-seeking assets. Liability matching assets are assets that produce cash flows that can be expected to match the cash flows for a proportion of the membership, and include a liability-driven investment mandate (LDI) for which a Qualifying Investor Alternative Investment Fund (QIAIF) was established, managed by a subsidiary of Legal & General Investment Management. The QIAIF invests in UK bonds, interest rate/inflation swaps and other derivative instruments in order to reduce interest rate and inflation risks using accurate cash flow matching and risk control. Other liability matching assets include pensioner buy-in insurance policies, bonds and inflation-linked property and infrastructure. Following the purchase of buy-in policies with Legal & General and Aviva in 2017 and 2019, 95% of the UK Group plan\u2019s pensioner liabilities were matched with buy-in policies. These transfer significant longevity risk to Aviva and Legal & General, reducing the pension risks being underwritten by the Group and providing additional security for members. Return-seeking assets are assets invested with a longer-term horizon to generate the returns needed to provide the remaining expected cash flows for the beneficiaries, and include diversified growth funds, property and alternative asset classes. Recent economic and geopolitical uncertainty has increased volatility in the valuation of certain assets, in particular the LDI and insurance contracts. However, these movements are offset by equivalent movements in the defined benefit obligation. The UK Group plan divides its assets between a number of investment managers and across different types of assets, as such there is no significant concentration of risk. Regular employer contributions to the UK Group plan in respect of the defined benefit sections are estimated to be \u00a3nil for 2023. Sensitivities The effect of a one percentage point increase and decrease in the discount rate on the defined benefit obligation and the total pension expense is as follows: All figures in \u00a3 millions 2022 1% increase 1% decrease Effect: (Decrease)/increase in defined benefit obligation \u2013 UK Group plan (209) 261 (Decrease)/increase in defined benefit obligation \u2013 US plan (7) 7 The effect of members living one year more or one year less on the defined benefit obligation is as follows: All figures in \u00a3 millions 2022 One year increase One year decrease Effect: Increase/(decrease) in defined benefit obligation \u2013 UK Group plan 59 (59) Increase/(decrease) in defined benefit obligation \u2013 US plan 3 (2) 25. Retirement benefit and other post-retirement obligations continued The effect of a half percentage point increase and decrease in the inflation rate is as follows: All figures in \u00a3 millions 2022 0.5% increase 0.5% decrease Effect: Increase/(decrease) in defined benefit obligation \u2013 UK Group plan 59 (57) Increase/(decrease) in defined benefit obligation \u2013 US plan \u2013 \u2013 The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant, although in practice this is unlikely to occur and changes in some assumptions may be correlated. When calculating these sensitivities, the same method has been applied to calculate the defined benefit obligation as has been applied when calculating the liability recognised in the balance sheet. This methodology is the same as prior periods. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-748": {
"value": "26. Share-based payments The Group recognised the following charges in the income statement in respect of its equity-settled share-based payment plans: All figures in \u00a3 millions 2022 2021 2020 Pearson plans 38 28 29 The Group operates the following equity-settled employee option and share plans: Worldwide Save for Shares Plan \u2013 The Group has a Worldwide Save for Shares Plan. Under these plans, employees can save a portion of their monthly salary over a period of three years. At the end of this period, the employee has the option to purchase ordinary shares with the accumulated funds at a purchase price equal to 80% of the market price prevailing at the time of the commencement of the employee\u2019s participation in the plan. Options that are not exercised within six months of the end of the savings period lapse unconditionally. Employee Stock Purchase Plan \u2013 In 2000, the Group established an Employee Stock Purchase Plan which allows all employees in the US to save a portion of their monthly salary over six-month periods. At the end of the period, the employee has the option to purchase American Depositary Receipts (ADRs) with their accumulated funds at a purchase price equal to 85% of the lower of the market prices prevailing at the beginning or end of the period. Long-Term Incentive Plan \u2013 The plan was first introduced in 2001 and from time to time the plan rules are renewed. The plan consists of restricted shares. The vesting of restricted shares is normally dependent on continuing service over a three to five-year period, and in the case of Executive Directors and senior management upon the satisfaction of corporate performance targets over a three-year period. These targets may be based on market and/or non-market performance criteria. Restricted shares awarded to Executive Directors in May 2022, May 2021 and May 2020 vest dependent on relative total shareholder return, return on invested capital and adjusted earnings per share growth. These awards are in addition to the 2020 one-off co-investment award for the Chief Executive, vesting in three equal tranches based on market and non-market performance criteria. The applicable market condition for the vesting of the final tranche is on total shareholder return. Other restricted shares awarded in 2022, 2021 and 2020 generally vest depending on continuing service over periods of up to four years. Included within the total share-based payments charge in 2022 was \u00a33m (2021: \u00a3nil; 2020: \u00a3nil) in respect of remuneration for post-acquisition services for recent acquisitions, which was included within other net gains and losses in the income statement. Management Incentive Plan \u2013 The plan was introduced in 2017 combining the Group\u2019s Annual Incentive Plan and Long-Term Incentive Plan for senior management. The number of shares to be granted to participants is dependent on Group performance in the calendar year preceding the date of grant (on the same basis as the Annual Incentive Plan). Subsequently, the shares vest dependent on continuing service over a three-year period, and additionally, in the case of the Pearson Executive Management team, upon satisfaction of non-market based performance criteria as determined by the Remuneration Committee. Restricted shares awarded as part of the 2020 Management Incentive Plan were granted in April 2021. In 2021 this scheme was replaced by the Long-Term Incentive Plan for senior management. The following shares were granted under restricted share arrangements: 2022 2021 Number of shares 000s Weighted average fair value \u00a3 Number of shares 000s Weighted average fair value \u00a3 Long-Term Incentive Plan 7,584 7.61 6,394 7.27 Management Incentive Plan \u2013 \u2013 630 7.71 In 2022, \u00a326m of shares vested across the Worldwide Save for Shares Plan, the Long-Term Incentive Plan and the Management Incentive Plan. The fair value of shares granted under the Long-Term Incentive Plan and the Management Incentive Plan that vest unconditionally is determined using the share price at the date of grant. Participants under the plans are entitled to dividends during the vesting period and therefore the share price is not discounted. Restricted shares with a market performance condition were valued by an independent actuary using a Monte Carlo model. Restricted shares with a non-market performance condition were fair valued based on the share price at the date of grant. Non-market performance conditions are taken into consideration by adjusting the number of shares expected to vest based on the most likely outcome of the relevant performance criteria. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSharebasedPaymentArrangementsExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-749": {
"value": "27. Share capital and share premium Number of shares 000s Share capital \u00a3m Share premium \u00a3m At 1 January 2021 753,258 188 2,620 Issue of ordinary shares \u2013 share option schemes 3,544 1 6 Purchase of own shares \u2013 \u2013 \u2013 At 31 December 2021 756,802 189 2,626 Issue of ordinary shares \u2013 share option schemes 1,199 \u2013 7 Purchase of own shares (42,268) (10) \u2013 At 31 December 2022 715,733 179 2,633 The ordinary shares have a par value of 25p per share (2021: 25p per share). All issued shares are fully paid. All shareholders are entitled to receive dividends and vote at general meetings of the company. All shares have the same rights. On 24 February 2022, the Board approved a \u00a3350m share buyback programme in order to return capital to shareholders. During the year, approximately 42m shares were bought back and cancelled at a cost of \u00a3353m. The nominal value of these shares, \u00a310m, was transferred to the capital redemption reserve, and the remainder of the purchase price is recorded within retained earnings. In 2021, no shares were bought back. The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximising the return to shareholders through the optimisation of the debt and equity balance. The capital structure of the Group consists of debt (see note 18), cash and cash equivalents (see note 17) and equity attributable to equity holders of the parent, comprising issued capital, reserves and retained earnings. The Group reviews its capital structure on a regular basis and will balance its overall capital structure through payments of dividends, new share issues as well as the issue of new debt or the redemption of existing debt in line with the financial risk policies outlined in note 19. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-750": {
"value": "28. Treasury shares Number of shares 000s \u00a3m At 1 January 2021 903 7 Purchase of treasury shares 2,158 16 Newly issued treasury shares 2,500 1 Release of treasury shares (3,990) (12) At 31 December 2021 1,571 12 Purchase of treasury shares 4,513 37 Release of treasury shares (4,220) (34) At 31 December 2022 1,864 15 The Group holds Pearson plc shares in trust to satisfy its obligations under its restricted share plans (see note 26). These shares, representing 0.3% (2021: 0.2%) of called-up share capital, are treated as treasury shares for accounting purposes and have a par value of 25p per share. The nominal value of Pearson plc treasury shares amounts to \u00a30.5m (2021: \u00a30.4m). Dividends on treasury shares are waived. At 31 December 2022, the market value of Pearson plc treasury shares was \u00a318m (2021: \u00a310m). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTreasurySharesExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-751": {
"value": "29. Other comprehensive income All figures in \u00a3 millions 2022 Attributable to equity holders of the company Non- controlling interest Total Fair value reserve Translation reserve Retained earnings Total Items that may be reclassified to the income statement Net exchange differences on translation of foreign operations \u2013 328 \u2013 328 2 330 Currency translation adjustment disposed \u2013 (5) \u2013 (5) \u2013 (5) Attributable tax \u2013 \u2013 4 4 \u2013 4 Items that are not reclassified to the income statement Fair value gain on other financial assets 18 \u2013 \u2013 18 \u2013 18 Attributable tax \u2013 \u2013 1 1 \u2013 1 Remeasurement of retirement benefit obligations \u2013 \u2013 54 54 \u2013 54 Attributable tax \u2013 \u2013 (12) (12) \u2013 (12) Other comprehensive income/(expense) for the year 18 323 47 388 2 390 All figures in \u00a3 millions 20211 Attributable to equity holders of the company Non- controlling interest Total Fair value reserve Translation reserve Retained earnings Total Items that may be reclassified to the income statement Net exchange differences on translation of foreign operations \u2013 (6) \u2013 (6) \u2013 (6) Currency translation adjustment disposed \u2013 4 \u2013 4 \u2013 4 Attributable tax \u2013 \u2013 10 10 \u2013 10 Items that are not reclassified to the income statement Fair value gain on other financial assets 4 \u2013 \u2013 4 \u2013 4 Attributable tax \u2013 \u2013 (1) (1) \u2013 (1) Remeasurement of retirement benefit obligations \u2013 \u2013 149 149 \u2013 149 Attributable tax \u2013 \u2013 (61) (61) \u2013 (61) Other comprehensive income/(expense) for the year 4 (2) 97 99 \u2013 99 1. Comparative balances have been restated \u2013 see Note 1b. All figures in \u00a3 millions 20201 Attributable to equity holders of the company Non- controlling interest Total Fair value reserve Translation reserve Retained earnings Total Items that may be reclassified to the income statement Net exchange differences on translation of foreign operations \u2013 (109) \u2013 (109) \u2013 (109) Currency translation adjustment disposed \u2013 (70) \u2013 (70) \u2013 (70) Attributable tax \u2013 \u2013 (13) (13) \u2013 (13) Items that are not reclassified to the income statement Fair value gain/(loss) on other financial assets (12) \u2013 \u2013 (12) \u2013 (12) Attributable tax \u2013 \u2013 \u2013 \u2013 \u2013 \u2013 Remeasurement of retirement benefit obligations \u2013 \u2013 (23) (23) \u2013 (23) Attributable tax \u2013 \u2013 2 2 \u2013 2 Other comprehensive income/(expense) for the year (12) (179) (34) (225) \u2013 (225) 1. Comparative balances have been restated \u2013 see Note 1b. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfReservesAndOtherEquityInterestExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-752": {
"value": "30. Business combinations On 28 January 2022, the Group acquired 100% of the share capital in Credly Inc (Credly), having previously held a 19.9% interest in the company. Credly was founded in 2012 in New York and is a digital credential service provider whose platform enables customers to design, create, issue and manage digital credentials. It now forms part of the Workforce Skills division. Total consideration was \u00a3149m comprising upfront cash consideration of \u00a3107m, Pearson\u2019s existing interest valued at \u00a331m and \u00a311m of deferred consideration. The deferred consideration is payable in two years, with additional amounts being payable if certain revenue and non-financial targets are met, and dependent on continuing employment, and therefore these additional amounts will be expensed over the period and are not treated as consideration. On 28 April 2022, the Group acquired 100% of the share capital of ATI STUDIOS A.P.P.S S.R.L (Mondly), a global online learning platform offering customers learning in English and 40 other languages via its app, website, virtual reality and augmented reality products. It now forms part of the English Language Learning division. Total consideration was \u00a3135m comprising upfront cash consideration of \u00a3105m, and deferred consideration of \u00a330m. The deferred consideration is payable over the next two years with no performance conditions attached. In addition, a further $29.6m (c\u00a324m) of cash and $10m (c\u00a38m) in shares will be paid over the next four years, dependent on continuing employment, and therefore these additional amounts will be expensed over the period and are not treated as consideration. These transactions have resulted in the recognition of \u00a3202m of goodwill, which represents the expected growth through new products and customers, the workforce and know-how acquired and the anticipated synergies, none of which can be recognised as separate intangible assets. The goodwill is not deductible for tax purposes. Intangible assets of \u00a399m have been recognised in respect of Credly and Mondly. The valuations of these assets were carried out by third party specialists, and were based on discounted cash flow models. The key assumptions that feed into the valuations are the cash flow forecasts, revenue projections from existing customers, forecasted profit margins and discount rates. For Credly, \u00a349m of intangible assets were recognised, mainly relating to the existing customer relationships that will be amortised over 20 years, and technology which will be amortised over five years. For Mondly, \u00a350m of intangible assets were recognised, the majority of which relates to acquired technology, and will be amortised over periods up to seven years. In 2022, the Group also made three smaller acquisitions in the period for total consideration of \u00a311m. In December 2022, the Group announced that it had signed a deal to acquire 100% of Personnel Decisions Research Institutes, LLC, the transaction has not yet completed. In September 2021, Pearson completed the acquisition of 100% of the share capital of Faethm Holdings Pty Limited (Faethm), having already held 9% of the share capital previously. Faethm uses artificial intelligence and analytics services to help governments, companies and workers understand the dynamic forces shaping the labour market. Faethm now forms part of the Workforce Skills division. The total consideration for the transaction was \u00a365m, which included \u00a310m of contingent consideration, dependent upon meeting certain earnings targets. The contingent consideration was valued at the net present value of the Group\u2019s best estimate of the amount that will be payable. In 2022, contingent consideration amounts have been settled resulting in the recognition of an \u00a38m gain in the income statement within other net gains and losses. In addition, the Group made two additional acquisitions of subsidiaries for total consideration of \u00a311m. In both cases, the Group acquired 100% of the share capital of the respective entities. Opinion Interactive LLC (also known as Spotlight Education) was acquired in February 2021. MZ Development Inc. was acquired in July 2021. Both form part of the Assessment & Qualifications division. The Group also made additional investments in associates, which are detailed in note 12, and are not included below. Details of the fair values of the assets and liabilities recognised at the acquisition date and the related consideration is shown in the table below. Amounts for intangible assets and goodwill for Mondly are provisional as management finalise reviews of the asset valuations. There were no significant acquisitions in 2020. All figures in \u00a3 millions 2022 Credly 2022 Mondly 2022 Other 2022 Total 2021 Total 2020 Total Intangible assets 49 50 11 110 27 \u2013 Deferred tax asset 7 1 \u2013 8 11 \u2013 Trade and other receivables 6 2 \u2013 8 2 \u2013 Cash and cash equivalents 12 1 \u2013 13 4 \u2013 Trade and other liabilities (18) (8) \u2013 (26) (5) \u2013 Deferred tax liabilities (12) (8) (2) (22) (6) \u2013 Net assets acquired 44 38 9 91 33 \u2013 Goodwill 105 97 2 204 43 \u2013 Total 149 135 11 295 76 \u2013 Satisfied by: Cash consideration 107 105 11 223 54 \u2013 Contingent or deferred consideration 11 30 \u2013 41 16 \u2013 Fair value of existing investment 31 \u2013 \u2013 31 6 \u2013 Total consideration 149 135 11 295 76 \u2013 Credly generated revenues of \u00a313m and a loss after tax of \u00a34m for the period from acquisition date to 31 December 2022. Mondly generated revenues of \u00a311m and a profit after tax of \u00a33m for the period from acquisition date to 31 December 2022. If the acquisitions had occurred on 1 January 2022, the Group\u2019s revenue would have been \u00a37m higher and the profit after tax would not have been materially different. 30. Business combinations continued Total acquisition related costs of \u00a320m were recognised in 2022 within other net gains and losses. The net cash outflows related to the acquisitions are set out in the table below. In addition to the current year acquisitions, the other net cash outflows on acquisition of subsidiaries in 2022 and 2021 relate to deferred payments for prior year acquisitions. All figures in \u00a3 millions 2022 Total 2021 Total 2020 Total Cash flow on acquisitions Cash \u2013 current year acquisitions (223) (54) \u2013 Cash and cash equivalents acquired 13 4 \u2013 Deferred payments for prior year acquisitions and other items (10) (4) (6) Acquisition costs paid (8) (1) \u2013 Net cash outflow (228) (55) (6) ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBusinessCombinationsExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-753": {
"value": "31. Disposals and business closures In March 2021, the Group announced that it was launching a strategic review of its international courseware local publishing businesses. In 2022, the Group disposed of its interests in the Canadian educational publisher (ERPI), Pearson Italia S.p.A, Stark Verlag GmbH, Austin Education (Hong Kong) Limited, Pearson South Africa (Pty) Ltd and various other South African companies. Total cash consideration received was \u00a3287m resulting in a pre-tax gain on disposal of \u00a342m. All entities disposed of were previously in the Strategic Review segment. \u00a35m of losses arose from other immaterial disposals and costs related to the wind-down of certain businesses. Whether the associated results and cash flows of the businesses disposed in 2022 should be classified and presented as discontinued operations is a significant judgement. The Group's judgement is that the results and cash flows of the related businesses should not be classified and presented as discontinued operations. The basis of this judgement is that the businesses disposed do not constitute a separate major line of business or geographical area of operations. The Group will continue to operate in the international K12 courseware market and in all geographical areas where disposals have taken place. All of the businesses subject to this judgement are within the Strategic Review segment and represent \u00a3126m of sales for the year ended 31 December 2022 out of the total sales in the Strategic Review segment of \u00a3154m. If the Group had concluded that these businesses represented discontinued operations, their results and the related gains on disposal would not have been included within each of the continuing operations income statement lines. Profit for the period from continuing operations would have been \u00a352m lower and this amount would have been separately presented as profit for the period from discontinued operations as a single line item. Adjusted operating profit would be unchanged. In February 2021, the Group completed the sale of its interests in the Pearson Institute of Higher Education (PIHE) in South Africa resulting in a pre-tax loss of \u00a35m. In October 2021, the sale of the Group\u2019s interests in K12 Sistemas in Brazil was also completed for consideration of \u00a3108 million, resulting in a gain on sale of \u00a384m. There were no other business disposals in 2021 and additional losses of \u00a314m relate to other disposal costs including costs related to the wind-down of certain businesses under strategic review. In April 2020, the Group completed the sale of the remaining 25% interest in Penguin Random House resulting in a pre-tax profit of \u00a3180m. There were no other material disposals in 2020. Deferred proceeds relating to the K12 sale were received in 2022, 2021 and 2020 (see note 14). None of the 2021 or 2020 disposals met the criteria to be considered a discontinued operation on the basis that they did not represent major lines of business or geographical areas of operations. The table below shows a summary of the assets and liabilities disposed of: All figures in \u00a3 millions Notes 2022 2021 2020 Disposal of subsidiaries and associates Intangible assets, including goodwill (77) (3) \u2013 Property, plant and equipment (11) (48) \u2013 Investments in joint ventures and associates \u2013 \u2013 (418) Intangible assets \u2013 product development (39) (6) \u2013 Inventories (33) (2) \u2013 Trade and other receivables (106) (6) \u2013 Deferred tax (12) \u2013 \u2013 Cash and cash equivalents (excluding overdrafts) (21) (24) \u2013 Provisions for other liabilities and charges 1 3 \u2013 Retirement benefit obligations 2 \u2013 \u2013 Trade and other liabilities 52 4 \u2013 Financial liabilities \u2013 borrowings 8 67 \u2013 Net assets disposed (236) (15) (418) Cumulative currency translation adjustment 5 (4) 70 Cash proceeds 291 108 531 Deferred proceeds 2 \u2013 \u2013 Costs of disposal (25) (24) 1 Gain on disposal 37 65 184 All figures in \u00a3 millions 2022 2021 2020 Cash flow from disposals Proceeds \u2013 current year disposals 291 108 531 Proceeds \u2013 prior year disposals 86 16 105 Cash and cash equivalents disposed (21) (24) \u2013 Costs and other disposal liabilities paid (23) (17) (5) Net cash inflow 333 83 631 Analysed as: Cash inflow from disposal of subsidiaries 333 83 100 Cash inflow from disposal of joint ventures and associates \u2013 \u2013 531 ",
"dimensions": {
"concept": "pearsonplc:DisclosureOfDisposalsAndBusinessClosures",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-754": {
"value": "32. Held for sale At 31 December 2022, the Group has entered into an agreement to dispose of a property that was previously accounted for as investment property. The sale is expected to complete in 2023. Two other properties are currently also in the process of being sold, with the sales also expected to complete in 2023. The properties are all classified as held for sale and have a carrying value of \u00a316m as at 31 December 2022. At 31 December 2021, only one property, which was disposed of in 2022, was classified as held for sale, and had a carrying value of \u00a37m as at 31 December 2021. The businesses that were included in the Strategic Review segment as at 31 December 2021 did not meet the criteria for classification as held for sale as at 31 December 2021 on the basis that the Group was not sufficiently advanced in the sales process at that time for the sale to be considered highly probable. The held for sale balances are analysed as follows: All figures in \u00a3 millions 2022 Total 2021 Total Non-current assets Property, plant and equipment 16 7 16 7 Assets classified as held for sale 16 7 Net assets classified as held for sale 16 7 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-755": {
"value": "33. Cash generated from operations Operating cash flow and free cash flow are non-GAAP measures and have been disclosed as they are part of the Group\u2019s corporate and operating measures. These measures are presented in order to align the cash flows with corresponding adjusted profit measures. The table below reconciles the statutory profit and cash flow measures to the corresponding adjusted measures. The table on the next page reconciles operating cash flow to net debt. all figures in \u00a3 million Statutory measures Cost of major restructuring Other net gains and losses Intangible charges UK Pension discretionary increases Purchase/ disposal of PPE and software* Net addition of right-of-use assets* Dividends from joint ventures and associates Adjusted measures 2022 Operating profit Net Cash generated from operations 271 150 (24) 56 3 \u2013 \u2013 \u2013 456 Adjusted operating profit 527 35 \u2013 \u2013 \u2013 (133) (29) 1 401 Operating cash flow 2021 Operating profit Net Cash generated from operations 183 214 (63) 51 \u2013 \u2013 \u2013 \u2013 385 Adjusted operating profit 570 24 \u2013 \u2013 \u2013 (176) (30) \u2013 388 Operating cash flow 2020 Operating profit Net Cash generated from operations 411 \u2013 (178) 80 \u2013 \u2013 \u2013 \u2013 313 Adjusted operating profit 450 38 \u2013 \u2013 \u2013 (134) (43) 4 315 Operating cash flow * Includes Investment property All figures in \u00a3 millions 2022 2021 2020 Operating cash flow 401 388 315 Tax paid (109) (177) 2 Net finance costs paid (35) (54) (50) Net costs paid for major restructuring (35) (24) (38) Free cash flow 222 133 229 Dividends paid (including to non-controlling interests) (157) (149) (147) Net movement of funds from operations 65 (16) 82 Acquisitions and disposals 105 62 619 Disposal of lease liabilities 8 67 \u2013 Loans repaid \u2013 \u2013 48 Net equity transactions (383) (10) (176) Other movements on financial instruments (2) 10 (20) Movement in net debt (207) 113 553 Opening net debt (350) (463) (1,016) Closing net debt (557) (350) (463) 33. Cash generated from operations continued Net cash generated from operations is translated at an exchange rate approximating the rate at the date of cash flow. The difference between this rate and the average rate used to translate profit gives rise to a currency adjustment in the reconciliation between net profit and net cash generated from operations. This adjustment reflects the timing difference between recognition of profit and the related cash receipts or payments. Operating cash flow and total free cash flow are non-GAAP (non-statutory) measures and have been disclosed and reconciled in the above table as they are commonly used by investors to measure the cash performance of the Group. In the cash flow statement, proceeds from sale of property, plant and equipment comprise: All figures in \u00a3 millions 2022 2021 Net book amount 9 4 Profit/(loss) on sale of property, plant and equipment 5 (4) Proceeds from sale of property, plant and equipment 14 \u2013 The movements in the Group\u2019s current and non-current borrowings are as follows: All figures in \u00a3 millions 2021 Fair value and other movements Foreign exchange movements Financing cash flows Transfer from non-current to current New leases/ disposal of leases 2022 Financial liabilities Non-current borrowings 1,245 (14) 61 (76) (92) 31 1,155 Current borrowings 157 (10) 16 (188) 92 (1) 66 Total 1,402 (24) 77 (264) \u2013 30 1,221 All figures in \u00a3 millions 2020 Fair value and other movements Foreign exchange movements Financing cash flows Transfer from non-current to current New leases/ disposal of leases 2021 Financial liabilities Non-current borrowings 1,458 (20) 3 \u2013 (160) (36) 1,245 Current borrowings 248 9 (4) (255) 160 (1) 157 Total 1,706 (11) (1) (255) \u2013 (37) 1,402 Non-current borrowings include bonds, derivative financial instruments and leases. Current borrowings include loans repayable within one year, derivative financial instruments and leases, but exclude overdrafts classified within cash and cash equivalents. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCashFlowStatementExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-756": {
"value": "34. Contingencies, other liabilities and commitments The total exposure in relation to this issue is calculated to be \u00a3105m (excluding interest) with a provision of \u00a363m now included in the results representing our estimate of the expected value. At 31 December 2021, it was considered to be a contingent liability. This issue is specific to periods up to 2018 and is not a continuing exposure. The Group is under assessment from the tax authorities in Brazil challenging the deduction for tax purposes of goodwill amortisation for the years 2012 to 2017. Similar assessments may be raised for other years. Potential total exposure (including possible interest and penalties) could be up to BRL 1,212m (\u00a3190m) up to 31 December 2022. Such assessments are common in Brazil. The Group believes that the likelihood that the tax authorities will ultimately prevail is low and that the Group\u2019s position is strong. At present, the Group believes no provision is required. The Group is also under assessment from the UK tax authorities in relation to an issue related to the UK\u2019s FCPE legislation with the relevant years being 2019 to 2021. The maximum exposure is calculated to be \u00a344m, with a provision of \u00a313m currently held in relation to this issue. The provision is calculated considering a range of possible outcomes and applying a probability to each, resulting in a weighted average outcome. The possible outcomes considered range from no liability through to the full exposure (\u00a344m). This issue is specific to 2019 to 2021 and is not a continuing exposure. At the balance sheet date there were no commitments for capital expenditure contracted for but not yet incurred. Commitments in respect of leases are shown in note 35. KJ Key judgements \u2014 The application of tax legislation in relation to provisions for uncertain tax positions. KE Key areas of estimation \u2014 The level of provisions required in relation to uncertain tax positions is complex and each matter is separately assessed. The estimation of future settlement amounts is based on a number of factors including the status of the unresolved matter, clarity of legislation, range of possible outcomes and the statute of limitations. There are contingent Group liabilities that arise in the normal course of business in respect of indemnities, warranties and guarantees in relation to former subsidiaries and in respect of guarantees in relation to subsidiaries, joint ventures and associates. In addition, there are contingent liabilities of the Group in respect of unsettled or disputed tax liabilities, legal claims, contract disputes, royalties, copyright fees, permissions and other rights. None of these claims are expected to result in a material gain or loss to the Group. On 25 April 2019, the European Commission published the full decision that the United Kingdom controlled foreign company group financing partial exemption (FCPE) partially constitutes State Aid. This decision was appealed by the UK Government and other parties. On 8 June 2022, the EU General Court dismissed the appeal following which it has been concluded that a provision is now required in relation to this issue. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-793": {
"value": "34. Contingencies, other liabilities and commitments The total exposure in relation to this issue is calculated to be \u00a3105m (excluding interest) with a provision of \u00a363m now included in the results representing our estimate of the expected value. At 31 December 2021, it was considered to be a contingent liability. This issue is specific to periods up to 2018 and is not a continuing exposure. The Group is under assessment from the tax authorities in Brazil challenging the deduction for tax purposes of goodwill amortisation for the years 2012 to 2017. Similar assessments may be raised for other years. Potential total exposure (including possible interest and penalties) could be up to BRL 1,212m (\u00a3190m) up to 31 December 2022. Such assessments are common in Brazil. The Group believes that the likelihood that the tax authorities will ultimately prevail is low and that the Group\u2019s position is strong. At present, the Group believes no provision is required. The Group is also under assessment from the UK tax authorities in relation to an issue related to the UK\u2019s FCPE legislation with the relevant years being 2019 to 2021. The maximum exposure is calculated to be \u00a344m, with a provision of \u00a313m currently held in relation to this issue. The provision is calculated considering a range of possible outcomes and applying a probability to each, resulting in a weighted average outcome. The possible outcomes considered range from no liability through to the full exposure (\u00a344m). This issue is specific to 2019 to 2021 and is not a continuing exposure. At the balance sheet date there were no commitments for capital expenditure contracted for but not yet incurred. Commitments in respect of leases are shown in note 35. KJ Key judgements \u2014 The application of tax legislation in relation to provisions for uncertain tax positions. KE Key areas of estimation \u2014 The level of provisions required in relation to uncertain tax positions is complex and each matter is separately assessed. The estimation of future settlement amounts is based on a number of factors including the status of the unresolved matter, clarity of legislation, range of possible outcomes and the statute of limitations. There are contingent Group liabilities that arise in the normal course of business in respect of indemnities, warranties and guarantees in relation to former subsidiaries and in respect of guarantees in relation to subsidiaries, joint ventures and associates. In addition, there are contingent liabilities of the Group in respect of unsettled or disputed tax liabilities, legal claims, contract disputes, royalties, copyright fees, permissions and other rights. None of these claims are expected to result in a material gain or loss to the Group. On 25 April 2019, the European Commission published the full decision that the United Kingdom controlled foreign company group financing partial exemption (FCPE) partially constitutes State Aid. This decision was appealed by the UK Government and other parties. On 8 June 2022, the EU General Court dismissed the appeal following which it has been concluded that a provision is now required in relation to this issue. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-784": {
"value": "34. Contingencies, other liabilities and commitments The total exposure in relation to this issue is calculated to be \u00a3105m (excluding interest) with a provision of \u00a363m now included in the results representing our estimate of the expected value. At 31 December 2021, it was considered to be a contingent liability. This issue is specific to periods up to 2018 and is not a continuing exposure. The Group is under assessment from the tax authorities in Brazil challenging the deduction for tax purposes of goodwill amortisation for the years 2012 to 2017. Similar assessments may be raised for other years. Potential total exposure (including possible interest and penalties) could be up to BRL 1,212m (\u00a3190m) up to 31 December 2022. Such assessments are common in Brazil. The Group believes that the likelihood that the tax authorities will ultimately prevail is low and that the Group\u2019s position is strong. At present, the Group believes no provision is required. The Group is also under assessment from the UK tax authorities in relation to an issue related to the UK\u2019s FCPE legislation with the relevant years being 2019 to 2021. The maximum exposure is calculated to be \u00a344m, with a provision of \u00a313m currently held in relation to this issue. The provision is calculated considering a range of possible outcomes and applying a probability to each, resulting in a weighted average outcome. The possible outcomes considered range from no liability through to the full exposure (\u00a344m). This issue is specific to 2019 to 2021 and is not a continuing exposure. At the balance sheet date there were no commitments for capital expenditure contracted for but not yet incurred. Commitments in respect of leases are shown in note 35. KJ Key judgements \u2014 The application of tax legislation in relation to provisions for uncertain tax positions. KE Key areas of estimation \u2014 The level of provisions required in relation to uncertain tax positions is complex and each matter is separately assessed. The estimation of future settlement amounts is based on a number of factors including the status of the unresolved matter, clarity of legislation, range of possible outcomes and the statute of limitations. There are contingent Group liabilities that arise in the normal course of business in respect of indemnities, warranties and guarantees in relation to former subsidiaries and in respect of guarantees in relation to subsidiaries, joint ventures and associates. In addition, there are contingent liabilities of the Group in respect of unsettled or disputed tax liabilities, legal claims, contract disputes, royalties, copyright fees, permissions and other rights. None of these claims are expected to result in a material gain or loss to the Group. On 25 April 2019, the European Commission published the full decision that the United Kingdom controlled foreign company group financing partial exemption (FCPE) partially constitutes State Aid. This decision was appealed by the UK Government and other parties. On 8 June 2022, the EU General Court dismissed the appeal following which it has been concluded that a provision is now required in relation to this issue. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCommitmentsExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-757": {
"value": "35. Leases The Group\u2019s lease portfolio consists of approximately 720 property leases, mainly offices and test centres, together with a number of vehicle and equipment leases. The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets. The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term. As a lessee: The amounts recognised in the income statement are as follows: All figures in \u00a3 millions Note 2022 2021 2020 Interest on lease liabilities (25) (27) (41) Expenses relating to short-term leases \u2013 \u2013 (1) Depreciation of right-of-use assets 10 (46) (49) (68) Impairment of right-of-use assets 10 (34) (119) (4) Lease liabilities are included within financial liabilities \u2013 borrowings in the balance sheet, see note 18. The maturities of the Group\u2019s lease liabilities are as follows: All figures in \u00a3 millions 2022 2021 Less than one year 94 92 One to five years 320 318 More than five years 332 394 Total undiscounted lease liabilities 746 804 Lease liabilities included in the balance sheet 605 633 Analysed as: Current 71 68 Non-current 534 565 There are no lease liabilities classified as held for sale. The amounts recognised in the cash flow statement are as follows: All figures in \u00a3 millions 2022 2021 2020 Total cash outflow for leases as a lessee 118 115 133 At the balance sheet date commitments for capital leases contracted for but not yet incurred were \u00a35m (2021: \u00a33m). Extension and termination options and variable lease payments are not significant within the lease portfolio. Short-term leases to which the Group is committed at the balance sheet date are similar to the portfolio of short-term leases to which the short-term lease expense is disclosed above. As a lessor: In the event that the Group has excess capacity in its leased offices and warehouses, the Group subleases some of its properties under operating and finance leases. The amounts recognised in the income statement are as follows: All figures in \u00a3 millions 2022 2021 2020 Interest on lease receivables 5 6 9 Income from subleasing right-of-use assets (within other income) 4 2 7 The amounts recognised in the cash flow statement are as follows: All figures in \u00a3 millions 2022 2021 2020 Total cash inflow for leases as a lessor 23 27 50 35. Leases continued The following table sets out the maturity analysis of lease payments receivable for subleases classified as operating leases, showing the undiscounted lease payments to be received after the reporting date, and subleases classified as finance leases showing the undiscounted lease payments to be received after the reporting date and the net investment in the finance lease receivable. During the year, the investment in finance lease receivable increased by \u00a36m (2021: decreased \u00a315m), primarily due to new finance subleases entered into in excess of payments received. All figures in \u00a3 millions Operating leases Finance leases 2022 Total 2021 Total 2020 Total Less than one year 3 21 24 21 24 One to two years 5 23 28 18 24 Two to three years 5 23 28 20 18 Three to four years 5 23 28 21 18 Four to five years 5 24 29 20 18 More than five years 21 23 44 41 56 Total undiscounted lease payments receivable 44 137 181 141 158 Unearned finance income (16) Net investment in finance lease receivable 121 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLeasesExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-758": {
"value": "36. Related party transactions Joint ventures and associates In 2021, the Group acquired a 40% interest in Academy of Pop and is accounting for the investment as an associate. At 31 December 2022, the Group had a current liability payable to Academy of Pop of \u00a35m (2021: \u00a37m), which relates to the Group\u2019s initial capital contribution that had not yet been paid as at 31 December 2022. This balance was paid in early 2023. Key management personnel Key management personnel are deemed to be the members of the Pearson Executive Management team (see pages 60-61). It is this Committee which had responsibility for planning, directing and controlling the activities of the Group in 2022. Key management personnel compensation is disclosed below: All figures in \u00a3 millions 2022 2021 2020 Short-term employee benefits 7 6 6 Retirement benefits 1 1 1 Share-based payment costs 9 8 6 Total 17 15 13 Short-term employee benefits and retirement benefits exclude Executive Directors which are shown on page 101 of the Directors Remuneration Report. There were no other material related party transactions. No guarantees have been provided to related parties. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-794": {
"value": "36. Related party transactions Joint ventures and associates In 2021, the Group acquired a 40% interest in Academy of Pop and is accounting for the investment as an associate. At 31 December 2022, the Group had a current liability payable to Academy of Pop of \u00a35m (2021: \u00a37m), which relates to the Group\u2019s initial capital contribution that had not yet been paid as at 31 December 2022. This balance was paid in early 2023. Key management personnel Key management personnel are deemed to be the members of the Pearson Executive Management team (see pages 60-61). It is this Committee which had responsibility for planning, directing and controlling the activities of the Group in 2022. Key management personnel compensation is disclosed below: All figures in \u00a3 millions 2022 2021 2020 Short-term employee benefits 7 6 6 Retirement benefits 1 1 1 Share-based payment costs 9 8 6 Total 17 15 13 Short-term employee benefits and retirement benefits exclude Executive Directors which are shown on page 101 of the Directors Remuneration Report. There were no other material related party transactions. No guarantees have been provided to related parties. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-785": {
"value": "36. Related party transactions Joint ventures and associates In 2021, the Group acquired a 40% interest in Academy of Pop and is accounting for the investment as an associate. At 31 December 2022, the Group had a current liability payable to Academy of Pop of \u00a35m (2021: \u00a37m), which relates to the Group\u2019s initial capital contribution that had not yet been paid as at 31 December 2022. This balance was paid in early 2023. Key management personnel Key management personnel are deemed to be the members of the Pearson Executive Management team (see pages 60-61). It is this Committee which had responsibility for planning, directing and controlling the activities of the Group in 2022. Key management personnel compensation is disclosed below: All figures in \u00a3 millions 2022 2021 2020 Short-term employee benefits 7 6 6 Retirement benefits 1 1 1 Share-based payment costs 9 8 6 Total 17 15 13 Short-term employee benefits and retirement benefits exclude Executive Directors which are shown on page 101 of the Directors Remuneration Report. There were no other material related party transactions. No guarantees have been provided to related parties. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTransactionsBetweenRelatedPartiesExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-759": {
"value": "37. Events after the balance sheet date In February 2023, the Group renegotiated its revolving credit facility, reducing the maximum facility to $1bn. Pearson holds investments in unlisted securities with a value at 22 December 2022 of \u00a3133m. Some of the businesses relevant to this investment, bank with Silicon Valley Bank which collapsed in early March 2023. Given the US Government has announced that it will guarantee all deposits held at Silicon Valley Bank, any subsequent risk to the valuation of these investments is considered by management to be low, but possible. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory",
"language": "en",
"entity": "scheme:2138004JBXWWJKIURC57",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
}
}
}