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

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Notes to the accounts For the year ended 31st December 2008 19 Deferred tax The components of deferred taxes disclosed on the balance sheet are as follows: 2008 2007 £m £m Deferred tax liability 304 855 Deferred tax asset 2,668 1,463 Net deferred tax 2,364 608 Deferred taxes are calculated on all temporary differences under the liability method. The movement on the deferred tax account is as follows: Pensions Allowance Fixed Available and other for Tax losses asset timing for sale Cash flow retirement impairment Other carried Share based differences investments hedges benefits on loans provisions forward payments Other Total £m £m £m £m £m £m £m £m £m £m Liabilities (803) (101) (51) – – – – – (771) (1,726) Assets – – 44 491 108 377 215 428 671 2,334 At 1st January 2008 (803) (101) (7) 491 108 377 215 428 (100) 608 Income statement 124 8 5 (90) 223 (10) 598 (215) 227 870 Equity – 103 (161) – – – 750 (33) (13) 646 Acquisitions and disposals (195) – – – – 56 – 75 (211) (275) Exchange and other adjustments 16 1 41 2 25 109 96 87 138 515 (858) 11 (122) 403 356 532 1,659 342 41 2,364 Liabilities (945) (46) (368) – – – – – (1,075) (2,434) Assets 87 57 246 403 356 532 1,659 342 1,116 4,798 At 31st December 2008 (858) 11 (122) 403 356 532 1,659 342 41 2,364 Liabilities (705) (116) – – – – – – (702) (1,523) Assets – – 91 622 69 436 1 380 406 2,005 At 1st January 2007 (705) (116) 91 622 69 436 1 380 (296) 482 Income statement (118) 1 (96) 28 165 214 100 99 393 Equity – 13 (132) – – – – (63) (125) (307) Acquisitions and disposals – – – – – 45 – – (12) 33 Exchange and other adjustments 20 1 34 (35) 11 (269) – 11 234 7 (803) (101) (7) 491 108 377 215 428 (100) 608 Liabilities (803) (101) (51) – – – – – (771) (1,726) Assets – – 44 491 108 377 215 428 671 2,334 At 31st December 2007 (803) (101) (7) 491 108 377 215 428 (100) 608 The amount of deferred tax liability expected to be settled after more than 12 months is £1,949m (2007: £1,468m). The amount of deferred tax asset expected to be recovered after more than 12 months is £4,593m (2007: £1,950m). The deferred tax assets balance includes £2,139m (2007: £450m) which is the excess deferred tax assets over deferred tax liabilities in entities which have suffered a loss in either the current or prior year. This is based on management assessment that it is probable that the relevant entities will have taxable profits against which the temporary differences can be utilised. Deferred tax assets have not been recognised in respect of deductible temporary differences (gross) £9m (2007: £247m), unused tax losses (gross) of £4,083m (2007: £1,683m) and unused tax credits of £46m (2007: £126m). The following tax losses expire: £3,854m in 2028. The other tax losses, tax credits and temporary differences do not expire under current tax legislation. Deferred tax assets have not been recognised in respect of these items because it is not probable that future taxable profit will be available against which the Group can utilise benefits. The unused tax losses include amounts relating to non-UK branches of Barclays Bank PLC where the future tax benefit might be restricted to the amount in excess of the UK rate. The amount of temporary differences associated with investments in subsidiaries, branches, associates and joint ventures for which deferred tax liabilities have not been recognised is £8,429m (2007: £5,722m). 220 Barclays PLC Annual Report 2008 | Find out more at www.barclays.com/annualreport08
20 Investments in associates and joint ventures Share of net assets Associates Joint ventures Total 2008 2007 2008 2007 2008 2007 £m £m £m £m £m £m At beginning of year 90 74 287 154 377 228 Share of results before tax 25 35 (6) 10 19 45 Share of tax (3) (2) (2) (1) (5) (3) Share of post-tax results 22 33 (8) 9 14 42 New investments 6 7 27 8 33 15 Acquisitions 62 56 1 150 63 206 Disposals (20) (47) (117) (72) (137) (119) Exchange and other adjustments 15 (33) (24) 38 (9) 5 At end of year 175 90 166 287 341 377 Goodwill included above: Associates Joint ventures Total 2008 2007 2008 2007 2008 2007 £m £m £m £m £m £m Cost At beginning of year – 1 27 40 27 41 Disposals – (1) – (16) – (17) Exchange and other adjustments – – 4 3 4 3 At end of year – – 31 27 31 27 The Group has investments in two associates listed on the Johannesburg Stock Exchange. The fair value of the Group’s investment in Ambit Properties Limited is £51m (2007: £42m) and in Pinnacle Point Group Limited, acquired during 2008, is £60m. Acquisitions of joint ventures and associates During the year the Group made additional investments in associates and joint ventures for aggregate cash consideration of £96m (2007: £221m), including new associates and joint ventures amounting to £63m (2007: £206m) primarily relating to Pinnacle Point Group Limited. Summarised financial information for the Group’s associates and joint ventures is set out below: 2008 2007 Joint Joint Associates ventures Associates ventures £m £m £m £m Property, plant and equipment 788 104 588 632 Financial investments 124 – 239 8 Loans to banks and customers 271 2,883 516 2,372 Other assets 1,343 418 1,387 314 Total assets 2,526 3,405 2,730 3,326 Deposits from banks and customers 1,376 2,207 1,515 2,189 Other liabilities 985 890 902 458 Shareholders’ equity 165 308 313 679 Total liabilities 2,526 3,405 2,730 3,326 Net income 859 357 528 340 Operating expenses (732) (364) (404) (292) Profit/(loss) before tax 127 (7) 124 48 Profit/(loss) after tax 52 (11) 104 40 3 Financial statements The amounts included above, which include the entire assets, liabilities and net income of the investees, not just the Group’s share, are based on accounts made up to 31st December 2008 with the exception of certain undertakings for which the amounts are based on accounts made up to dates not earlier than three months before the balance sheet date. Associates and joint ventures in 2008 includes £1,651m (2007: £1,728m) of assets, £1,525m (2007: £1,537m) of liabilities and £9m (2007: £18m) of profit after tax in associates and joint ventures within the Absa Group. The Group’s share of commitments and contingencies of its associates and joint ventures is £nil (2007: £6m). Barclays PLC Annual Report 2008 221
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 and 24: 4 Principal transactions 2008 2007
Page 25 and 26: 9 Administration and general expens
Page 27 and 28: 12 Trading portfolio 2008 2007 £m
Page 29 and 30: 14 Derivative financial instruments
Page 31: 16 Available for sale financial inv
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
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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
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Page 65 and 66: 42 Other entities There are a numbe
Page 67 and 68: 43 Related party transactions and D
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48 Market risk (continued) Foreign
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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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