COMBINED FINANCIAL STATEMENTS > NOTES TO THE COMBINED FINANCIAL STATEMENTS Financial instruments  (continued) 22 Fair values of financial assets and liabilities The notional amount, book value and fair value of financial instruments are as follows: 64 REED ELSEVIER ANNUAL REPORTS & FINANCIAL STATEMENTS 2003 2003 2002 Notional Notional amount Book value Fair value amount Book value Fair value £m £m £m £m £m £m Primary financial instruments held or issued to  finance operations Investments 41 41 59 59 Cash 68 68 169 169 Short term investments  570 570 401 400 Other financial assets 23 23 20 20 Short term borrowings and current portion of long term borrowings (1,198) (1,197) (1,367) (1,374) Long term borrowings (1,812) (1,903) (1,935) (2,043) Other financial liabilities (13) (13) (18) (18) Provisions (51) (51) (71) (71) (2,372) (2,462) (2,742) (2,858) Derivative financial instruments held to manage  interest rate and currency exposure Interest rate swaps 1,405 (7) (54) 729 (9) (73) Interest rate options 618 (4) (33) 686 (4) (65) Interest rate floors 50 – – 150 – – Forward rate agreements 253 – – 968 – (1) Forward foreign exchange contracts 52 – 5 246 – 8 2,378 (11) (82) 2,779 (13) (131) Total financial instruments 2,378 (2,383) (2,544) 2,779 (2,755) (2,989)