PEARSON PLC | CIK:0000938323 | 3

  • Filed: 4/4/2018
  • Entity registrant name: PEARSON PLC (CIK: 0000938323)
  • Generator: Donnelley Financial Solutions
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/938323/000119312518106891/0001193125-18-106891-index.htm
  • XBRL Instance: http://www.sec.gov/Archives/edgar/data/938323/000119312518106891/pso-20171231.xml
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  • ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory

    17. Cash and cash equivalents (excluding overdrafts)

     

    All figures in £ millions

       2017      2016  

    Cash at bank and in hand

         361        570  

    Short-term bank deposits

         157        889  
      

     

     

        

     

     

     
         518        1,459  
      

     

     

        

     

     

     

    Cash at bank and in hand – within assets classified as held for sale

         127         
      

     

     

        

     

     

     
         645        1,459  
      

     

     

        

     

     

     

    Short-term bank deposits are invested with banks and earn interest at the prevailing short-term deposit rates.

    At the end of 2017, the currency split of cash and cash equivalents was US dollar 36% (2016: 34%), sterling 8% (2016: 40%), euro 7% (2016: 3%), renminbi 20% (2016: 10%) and other 29% (2016: 13%). At the end of 2017, a significant proportion of the renminbi cash relates to assets held for sale.

    Cash and cash equivalents have fair values that approximate to their carrying value due to their short-term nature. Cash and cash equivalents include the following for the purpose of the cash flow statement:

     

    All figures in £ millions

       2017     2016  

    Cash and cash equivalents

         518       1,459  

    Cash and cash equivalents – within assets classified as held for sale

         127        

    Bank overdrafts

         (15     (35
      

     

     

       

     

     

     
         630       1,424  
      

     

     

       

     

     

     

     

    The Group has certain cash pooling arrangements in US dollars, sterling, euro and Canadian dollars where both the company and the bank have a legal right of offset. At 31 December 2017, the offsetting amounts are presented gross in the balance sheet. Offset arrangements in respect of derivatives are shown in note 16.