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

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Notes to the accounts For the year ended 31st December 2008 40 Investment in subsidiaries The investment in Barclays Bank PLC is stated in the balance sheet of Barclays PLC at a cost of £15,340m (2007: £10,186m). The increase of £5,154m (2007: £1,545m) during the year represents the cost of additional shares of £16m (2007: £111m), capital contributions of £4,362m (2007: £1,434m), and a non-cash capital contribution of £776m. The investment in Barclays Investments (Netherlands) N.V. was liquidated in September 2008. The investment was stated in the balance sheet of Barclays PLC at a cost of £205m in 2007. The investment in Odysseus Jersey (No. 1) Limited was liquidated in September 2008. The investment was stated in the balance sheet of Barclays PLC at a cost of £0.1m in 2007. 41 Principal subsidiaries Percentage of equity Country of registration capital held or incorporation Company name Nature of business % Botswana Barclays Bank of Botswana Limited Banking 74.9 Egypt Barclays Bank Egypt SAE Banking 100 England Barclays Bank PLC Banking, holding company 100* England Barclays Mercantile Business Finance Limited Loans and advances including leases to customers 100* England Barclays Global Investors UK Holdings Limited Holding company 95.5 England Barclays Global Investors Limited Investment management 95.5* England Barclays Bank Trust Company Limited Banking, securities industries and trust services 100* England Barclays Stockbrokers Limited Stockbroking 100* England Barclays Capital Securities Limited Securities dealing 100* England Barclays Global Investors Pensions Management Limited Investment management 95.5* England FIRSTPLUS Financial Group PLC Secured loan provider 100 England Gerrard Investment Management Limited Investment management 100* Ghana Barclays Bank of Ghana Limited Banking 100 Ireland Barclays Insurance (Dublin) Limited Insurance provider 100* Ireland Barclays Assurance (Dublin) Limited Insurance provider 100* Isle of Man Barclays Private Clients International Limited a Banking 100* Japan Barclays Capital Japan Limited Securities dealing 100* Jersey Barclays Private Bank & Trust Limited Banking, trust company 100* Kenya Barclays Bank of Kenya Limited Banking 68.5 Russia Barclays Bank LLC Banking 100* South Africa Absa Group Limited Banking 58.6 Spain Barclays Bank SA Banking 99.7 Switzerland Barclays Bank (Suisse) S.A. Banking and trust services 100 USA Barclays Capital Inc. Securities dealing 100* USA Barclays Financial Corporation Holding company for US credit card issuer 100* USA Barclays Global Investors, National Association Investment management and securities industry 95.5* USA Barclays Group USA Inc. Holding company 100 Zimbabwe Barclays Bank of Zimbabwe Limited Banking 67.8* In accordance with Section 231(5) of the Companies Act 1985, the above information is provided solely in relation to principal subsidiaries. The country of registration or incorporation is also the principal area of operation of each of the above subsidiaries. Investments in these subsidiaries are held directly by Barclays Bank PLC except where marked *. Full information of all subsidiaries will be included in the Annual Return to be filed at Companies House. Note a BBPLC is the beneficial owner of 38.1% of shares and Barclays Holdings (Isle of Man) Limited is the beneficial owner of 61.9% of shares. 252 Barclays PLC Annual Report 2008 | Find out more at www.barclays.com/annualreport08
42 Other entities There are a number of entities that do not qualify as subsidiaries under UK Law but which are consolidated when the substance of the relationship between the Group and the entity (usually a Special Purpose Entity (SPE)) indicates that the entity is controlled by the Group. Such entities are deemed to be controlled by the Group when relationships with such entities gives rise to benefits that are in substance no different from those that would arise were the entity a subsidiary. The consolidation of such entities may be appropriate in a number of situations, but primarily when: – the operating and financial policies of the entity are closely defined from the outset (i.e. it operates on an ‘autopilot’ basis) with such policies being largely determined by the Group; – the Group has rights to obtain the majority of the benefits of the entity and/or retains the majority of the residual or ownership risks related to the entity; or – the activities of the entity are being conducted largely on behalf of the Group according to its specific business objectives. Such entities are created for a variety of purposes including securitisation, structuring, asset realisation, intermediation and management. Entities may have a different reporting date from that of the parent of 31st December. Dates may differ for a variety of reasons including local reporting regulations or tax laws. In accordance with our accounting policies, for the purpose of inclusion in the consolidated financial statements of Barclays PLC, entities with different reporting dates are made up until 31st December. Entities may have restrictions placed on their ability to transfer funds, including payment of dividends and repayment of loans, to their parent entity. Reasons for the restrictions include: – Central bank restrictions relating to local exchange control laws. – Central bank capital adequacy requirements. – Company law restrictions relating to treatment of the entities as going concerns. Although the Group’s interest in the equity voting rights in certain entities exceeds 50%, or it may have the power to appoint a majority of their Boards of Directors, they are excluded from consolidation because the Group either does not direct the financial and operating policies of these entities, or on the grounds that another entity has a superior economic interest in them. Consequently, these entities are not deemed to be controlled by Barclays. The table below includes information in relation to such entities as required by the Companies Act 1985, Section 231(5). Equity Retained Percentage of share- loss ordinary share holders’ for the Country of registration capital held funds year or incorporation Name % £m £m UK Oak Dedicated Limited 100 (4) (1) UK Oak Dedicated Two Limited 100 (4) – UK Oak Dedicated Three Limited 100 1 – UK Fitzroy Finance Limited 100 – – Cayman Islands St James Fleet Investments Two Limited 100 2 – Cayman Islands BNY BT NewCo Limited – – – 3 Financial statements Barclays PLC Annual Report 2008 253
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 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: 39 Acquisitions (continued) (c) Exp
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)
Page 77 and 78: 47 Credit risk (continued) Whilst t
Page 79 and 80: 47 Credit risk (continued) Credit r
Page 81 and 82: 47 Credit risk (continued) Credit r
Page 83 and 84: 47 Credit risk (continued) All loan
Page 85 and 86: 47 Credit risk (continued) Loans an
Page 87 and 88: 47 Credit risk (continued) Renegoti
Page 89 and 90: 47 Credit risk (continued) Reverse
Page 91 and 92: 48 Market risk (continued) To furth
Page 93 and 94: 48 Market risk (continued) Foreign
Page 95 and 96: 49 Liquidity risk (continued) Year-
Page 97 and 98: 49 Liquidity risk (continued) At 31
Page 99 and 100: 50 Fair value of financial instrume
Page 105 and 106: 52 Capital Management (continued) R
Page 107 and 108: 53 Segmental reporting (continued)
Page 109 and 110: 53 Segmental reporting (continued)
Page 111 and 112: Barclays Bank PLC data Consolidated
Page 113 and 114: Barclays Bank PLC data Consolidated
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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
Page 121 and 122:
k Called up share capital (continue
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l Reserves Other reserves Available
Page 125 and 126:
Barclays Bank PLC data Financial Da
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Barclays plc - Annual Report 2008 - Financial statements - The Group

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