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Note 20: Available-for-sale financial assets

  Group   Company
£ million 2010 2009   2010 2009
Available-for-sale financial assets 76 65   21 27

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.

In the prior year, the Group performed a review of its investment in Flybe at 31 March 2009. Despite a growth in Flybe’s revenue and an expected reporting of profits for the year ended 31 March 2009, the review showed a decline in fair value, associated with a 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 was recognised in the income statement.

The Group performed a review of its investment in Flybe at 31 March 2010. The review showed an increase in fair value from £30 million at 31 March 2009, to £41 million at 31 March 2010, as a result of improvements in the Group’s expectation of an improvement in Flybe’s forecast revenue growth and net debt position at the balance sheet date. Accordingly, the Group recognised an £11 million write-up relating to Flybe in the statement of other comprehensive income.

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 2010 2009   2010 2009
Listed 14 8
Unlisted 62 57   21 27
At 31 March 76 65   21 27

For a summary of the movement in available-for-sale financial assets, refer to note 31.

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