1 Accounting policies

a. Basis of preparation

The financial statements (Company Statement of Recognised Income and Expense Company Balance Sheet, Company Cash Flow Statement and Notes to the Company Financial Statements) comprise the separate financial statements of Pearson plc. As permitted by section 230(4) of the Companies Act 1985, only the Group's income statement has been presented.

The Company has no employees.

b. Group accounting policies

The accounting policies applied in the preparation of these Company financial statements are the same as those set out in note 1 to the Group financial statements with the addition of the following:

Investments - Investments in subsidiaries are stated at cost less provision for impairment.