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

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Notes to the accounts For the year ended 31st December 2008 43 Related party transactions and Directors’ remuneration (a) Related party transactions Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operation decisions, or one other party controls both. The definition includes subsidiaries, associates, joint ventures and the Group’s pension schemes, as well as other persons. Subsidiaries Transactions between Barclays PLC and subsidiaries also meet the definition of related party transactions. Where these are eliminated on consolidation, they are not disclosed in the Group financial statements. Transactions between Barclays PLC and its subsidiary, Barclays Bank PLC are fully disclosed directly in its balance sheet and income statement. A list of the Group’s principal subsidiaries is shown in Note 41. Associates, joint ventures and other entities The Group provides banking services to its associates, joint ventures, the Group pension funds (principally the UK Retirement Fund) and to entities under common directorships, providing loans, overdrafts, interest and non-interest bearing deposits and current accounts to these entities as well as other services. Group companies, principally within Barclays Global Investors, also provide investment management and custodian services to the Group pension schemes. The Group also provides banking services for unit trusts and investment funds managed by Group companies and are not individually material. All of these transactions are conducted on the same terms as third-party transactions. Amounts included in the accounts, in aggregate, by category of related party entity are as follows: For the year ended and as at 31st December 2008 Pension Entities funds unit under trusts and Joint common investment Associates ventures directorships funds Total £m £m £m £m £m Income statement: Interest received – 105 3 – 108 Interest paid – (73) – – (73) Fees received for services rendered (including investment management and custody and commissions) – 15 – 5 20 Fees paid for services provided (44) (146) – – (190) Principal transactions 8 59 60 (25) 102 Assets: Loans and advances to banks and customers 110 954 34 – 1,098 Derivative transactions – 9 311 15 335 Other assets 67 276 – 3 346 Liabilities: Deposits from banks – 592 – – 592 Customer accounts – 167 74 10 251 Derivative transactions – – 111 41 152 Other liabilities 3 18 – 28 49 254 Barclays PLC Annual Report 2008 | Find out more at www.barclays.com/annualreport08
43 Related party transactions and Directors’ remuneration (continued) For the year ended and as at 31st December 2007 a Pension Entities funds unit under trusts and Joint common investment Associates ventures directorships funds Total £m £m £m £m £m Income statement: Interest received 5 88 1 – 94 Interest paid (1) (58) (1) – (60) Fees received for services rendered (including investment management and custody and commissions) 1 34 – 26 61 Fees paid for services provided (52) (78) – – (130) Principal transactions (27) 45 (16) – 2 Assets: Loans and advances to banks and customers 142 1,285 40 – 1,467 Derivative transactions – 4 36 – 40 Other assets 213 106 – 14 333 Liabilities: Deposits from banks 11 – – – 11 Customer accounts – 61 33 12 106 Derivative transactions – 10 50 – 60 Other liabilities 4 125 – – 129 For the year ended and as at 31st December 2006 a Pension Entities funds unit under trusts and Joint common investment Associates ventures directorships funds Total £m £m £m £m £m Income statement: Interest received 45 38 – 2 85 Interest paid (31) (57) – – (88) Fees received for services rendered (including investment management and custody and commissions) 14 7 – 28 49 Fees paid for services provided (115) (51) – (1) (167) Principal transactions 3 – (2) – 1 3 Assets: Loans and advances to banks and customers 784 146 65 – 995 Derivative transactions – – – – – Other assets 19 3 – 17 39 Liabilities: Deposits from banks 9 – – 3 12 Customer accounts 19 18 5 34 76 Derivative transactions – – 2 – 2 Other liabilities 13 8 – – 21 Financial statements No guarantees, pledges or commitments have been given or received in respect of these transactions in 2008, 2007 or 2006. Derivatives transacted on behalf of the Pensions Funds Unit Trusts and Investment Funds amounted to £318m (2007: £22m, 2006: £1,209m). In 2008 Barclays paid £12m (2007: £18m) of its charitable donations through the Charities Aid Foundation, a registered charitable organisation, in which a Director of the Company is a Trustee. Note a The amounts reported in prior periods have been restated to reflect new related parties. Barclays PLC Annual Report 2008 255
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Financial statements Presentation o
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Independent Auditors’ report Inde
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Consolidated accounts Barclays PLC
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) financial assets, loans to custom
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11. Collateral and netting The Grou
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17. Issued debt and equity securiti
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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 and 64: 39 Acquisitions (continued) (c) Exp
Page 65: 42 Other entities There are a numbe
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
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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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