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Note 21: Available-for-sale financial assets

  Group   Company
£ million 2009 2008   2009 2008
Available-for-sale financial assets 65 80   27 24

Available-for-sale financial assets are measured at fair value. For listed investments the fair value comprises the market price at the balance sheet date. For unlisted investments the fair value is estimated by reference to an earnings multiple model or by reference to other valuation methods. On March 5, 2007, the Group acquired a 15 per cent investment in Flybe in connection with the disposal of the regional business of BA Connect. The investment in Flybe was valued at £49 million at acquisition.

In the prior year, the Group performed a review of its investment in Flybe and due to an expected significant and prolonged decline in fair value associated with fuel price increases, the Group recognised a £6 million impairment of the investment. The impairment charge was reflected in the income statement within amounts relating to available-for-sale financial assets.

The Group performed a review of its investment in Flybe at March 31, 2009. Despite a growth in Flybe’s revenue and an expected reporting of profit for the year ended March 31, 2009, the review showed a further decline in fair value, associated with lower rate of forecast revenue and earnings growth than previously expected. Accordingly, the Group recognised a £13 million impairment of the investment. The impairment charge has been recognised in the income statement relating to available-for-sale financial assets. The investment is now valued at £30 million.

Available-for-sale investments include investments in listed ordinary shares, which by their nature have no fixed maturity date or coupon rate.

The table below shows total listed and unlisted available-for-sale investments.

  Group   Company
£ million 2009 2008   2009 2008
Listed 8 13      
Unlisted 57 67   27 24
At March 31 65 80   27 24

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