Barclays plc - Annual Report 2008 - Financial statements - The Group

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Notes to the accounts For the year ended 31st December 2008 7 Impairment charges and other credit provisions 2008 2007 2006 £m £m £m Impairment charges on loans and advances – New and increased impairment allowances 5,116 2,871 2,722 – Releases (358) (338) (389) – Recoveries (174) (227) (259) Impairment charges on loans and advances 4,584 2,306 2,074 Charge/(release) in respect of provision for undrawn contractually committed facilities and guarantees provided 329 476 (6) Impairment charges on loans and advances and other credit provisions 4,913 2,782 2,068 Impairment charges on reverse repurchase agreements 124 – – Impairment on available for sale assets 382 13 86 Impairment charges and other credit provisions 5,419 2,795 2,154 An analysis of the impairment charges by class of financial instrument is included in Note 47. 8 Staff costs 2008 2007 2006 £m £m £m Salaries and accrued incentive payments 6,273 6,993 6,635 Social security costs 464 508 502 Pension costs – defined contribution plans 237 141 128 Pension costs – defined benefit plans (Note 30) 89 150 282 Other post-retirement benefits (Note 30) 1 10 30 Other 715 603 592 Staff costs 7,779 8,405 8,169 Included in salaries and incentive payments is £257m (2007: £551m, 2006: £640m) arising from equity settled share-based payments, of which £23m (2007: £60m, 2006: £78m) is a charge related to options-based schemes. Also included is £3m (2007: £8m, 2006: £6m) arising from cash settled sharebased payments. The average number of persons employed by the Group worldwide during the year was 151,500 (2007: 128,900, 2006: 118,600). 9 Administration and general expenses 2008 2007 2006 £m £m £m Administrative expenses 5,153 3,978 3,980 Impairment charges/(releases) – property and equipment (Note 23) 33 2 14 – intangible assets (Note 22) (3) 14 7 – goodwill (Note 21) 111 – – Operating lease rentals 520 414 345 Gain on property disposals (148) (267) (432) Administration and general expenses 5,666 4,141 3,914 Auditors’ remuneration 2008 Audit Taxation Other Audit related services services Total £m £m £m £m £m Audit of the Group’s annual accounts 12 – – – 12 Other services: Fees payable for the audit of the Company’s associates pursuant to legislation 20 – – – 20 Other services supplied pursuant to such legislation – 2 2 Other services relating to taxation – – 10 – 10 Services relating to corporate finance transactions entered into or proposed to be entered into by or on behalf of the Company or any of its associates – – – 3 3 Other – 4 – 1 5 Total auditors’ remuneration 32 6 10 4 52 212 Barclays PLC Annual Report 2008 | Find out more at www.barclays.com/annualreport08
9 Administration and general expenses (continued) 2007 Audit Taxation Other Audit related services services Total £m £m £m £m £m Audit of the Group’s annual accounts 7 – – – 7 Other services: Fees payable for the audit of the Company’s associates pursuant to legislation 12 – – – 12 Other services supplied pursuant to such legislation 6 2 – – 8 Other services relating to taxation – – 8 – 8 Services relating to corporate finance transactions entered into or proposed to be entered into by or on behalf of the Company or any of its associates – – – 5 5 Other – 2 – 2 4 Total auditors’ remuneration 25 4 8 7 44 2006 Audit Taxation Other Audit related services services Total £m £m £m £m £m Audit of the Group’s annual accounts 7 – – – 7 Other services: Fees payable for the audit of the Company’s associates pursuant to legislation 11 – – – 11 Other services supplied pursuant to such legislation 10 1 – – 11 Other services relating to taxation – – 6 – 6 Services relating to corporate finance transactions entered into or proposed to be entered into by or on behalf of the Company or any of its associates – – – 4 4 Other – 4 – 1 5 Total auditors’ remuneration 28 5 6 5 44 The figures shown in the above table relate to fees paid to PricewaterhouseCoopers LLP and its associates. Fees paid to other auditors not associated with PricewaterhouseCoopers LLP in respect of the audit of the Company’s subsidiaries were £3m (2007: £2m, 2006: £2m). Fees payable for the audit of the Company’s associates pursuant to legislation comprise the fees for the statutory audit of the subsidiaries and associated pension schemes both inside and outside Great Britain and fees for the work performed by the associates of PricewaterhouseCoopers LLP in respect of the consolidated financial statements of the Company. The fees relating to the audit of the associated pension schemes were £0.2m (2007: £0.3m, 2006: £0.3m). Other services supplied pursuant to such legislation comprise services in relation to statutory and regulatory filings. These include audit services for the review of the interim financial information under the Listing Rules of the UK listing authority and fees paid for reporting under Section 404 of the US Sarbanes-Oxley Act (Section 404). In 2008 fees paid for reporting under section 404 are not separately identifiable from the fees of the audit of the Group’s annual accounts and the Company’s associates. In addition, other services include Section 404 advisory, reporting accountant work for capital raising, securitisations and services relating to acquisition activities. Taxation services include compliance services such as tax return preparation and advisory services such as consultation on tax matters, tax advice relating to transactions and other tax planning and advice. Services relating to corporate finance transactions comprise due diligence related to transactions and other work in connection with such transactions. 10 Tax The charge for tax is based upon the UK corporation tax rate of 28.5% (2007: 30%, 2006: 30%) and comprises: 3 Financial statements 2008 2007 2006 £m £m £m Current tax charge/(credit) Current year 1,563 2,385 1,929 Adjustment for prior years 97 (11) 8 1,660 2,374 1,937 Deferred tax (credit)/charge Current year (597) (367) (16) Adjustment for prior years (273) (26) 20 (870) (393) 4 Total charge/(credit) 790 1,981 1,941 Barclays PLC Annual Report 2008 213
Page 1 and 2: Financial statements Presentation o
Page 3 and 4: Independent Auditors’ report Inde
Page 5 and 6: Consolidated accounts Barclays PLC
Page 7 and 8: ) financial assets, loans to custom
Page 9 and 10: 11. Collateral and netting The Grou
Page 11 and 12: 17. Issued debt and equity securiti
Page 13 and 14: 24. Taxes, including deferred taxes
Page 15 and 16: The following IFRIC interpretations
Page 17 and 18: Consolidated balance sheet As at 31
Page 19 and 20: Consolidated cash flow statement Fo
Page 21 and 22: Statement of recognised income and
Page 23: 4 Principal transactions 2008 2007
Page 27 and 28: 12 Trading portfolio 2008 2007 £m
Page 29 and 30: 14 Derivative financial instruments
Page 31 and 32: 16 Available for sale financial inv
Page 33 and 34: 20 Investments in associates and jo
Page 35 and 36: 22 Intangible assets 2008 Internall
Page 37 and 38: 24 Financial liabilities designated
Page 39 and 40: 26 Insurance assets and liabilities
Page 41 and 42: 27 Subordinated liabilities (contin
Page 43 and 44: 27 Subordinated liabilities (contin
Page 45 and 46: 29 Securitisations The Group was pa
Page 47 and 48: 30 Retirement benefit obligations (
Page 53 and 54: 31 Ordinary shares, share premium,
Page 55 and 56: 32 Reserves (continued) Retained ea
Page 57 and 58: 34 Contingent liabilities and commi
Page 59 and 60: 37 Leasing The Group is both lessor
Page 61 and 62: 39 Acquisitions The Group made the
Page 63 and 64: 39 Acquisitions (continued) (c) Exp
Page 65 and 66: 42 Other entities There are a numbe
Page 67 and 68: 43 Related party transactions and D
Page 69 and 70: 43 Related party transactions and D
Page 71 and 72: 45 Share-based payments (continued)
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45 Share-based payments (continued)
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47 Credit risk (continued) Whilst t
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47 Credit risk (continued) Credit r
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47 Credit risk (continued) Credit r
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47 Credit risk (continued) All loan
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47 Credit risk (continued) Loans an
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47 Credit risk (continued) Renegoti
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47 Credit risk (continued) Reverse
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48 Market risk (continued) To furth
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48 Market risk (continued) Foreign
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49 Liquidity risk (continued) Year-
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49 Liquidity risk (continued) At 31
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50 Fair value of financial instrume
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52 Capital Management (continued) R
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53 Segmental reporting (continued)
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53 Segmental reporting (continued)
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Barclays Bank PLC data Consolidated
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c Principal transactions (continued
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f Other income 2008 2007 2006 £m
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k Called up share capital (continue
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l Reserves Other reserves Available
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Barclays Bank PLC data Financial Da
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Barclays plc - Annual Report 2008 - Financial statements - The Group

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