Setting new standards - Friends Life
Setting new standards - Friends Life
Setting new standards - Friends Life
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FINANCIAL STATEMENTS<br />
IFRS FINANCIAL STATEMENTS<br />
EEV SUPPLEMENTARY INFORMATION<br />
Notes to the parent company accounts continued<br />
3. Convertible bonds and loan notes<br />
The convertible bonds are carried at £283m (2005: £276m).<br />
Details of the convertible bonds are set out in note 32 to the Group’s consolidated financial statements.<br />
The loan notes were issued as part consideration for Lombard (see note 41(a) to the Group’s consolidated financial statements).<br />
4. Provisions<br />
Future consideration Share<br />
for Lombard entitlements Total<br />
£m £m £m<br />
At 1 January 2005 - 10 10<br />
Acquisition for the year 146 - 146<br />
Utilised in the year - (1) (1)<br />
At 31 December 2005 146 9 155<br />
Adjustment to consideration (12) - (12)<br />
Utilised in the year (59) - (59)<br />
At 31 December 2006 75 9 84<br />
Future consideration for Lombard includes future earn-out payments (see note 41(a) to the Group’s consolidated financial statements).<br />
The share entitlement provision represents expected future claims on share entitlements not claimed following demutualisation.<br />
Total creditors amounts to £402m (2005: £443m).<br />
5. Share capital and share premium<br />
Details of the Company’s share capital and share premium are set out in note 37 to the Group’s consolidated financial statements.<br />
6. Other equity<br />
2003 STICS 2005 STICS Total<br />
£m £m £m<br />
At 1 January 2006 299 511 810<br />
Interest due on STICS 21 31 52<br />
Interest paid on STICS (21) (31) (52)<br />
At 31 December 2006 299 511 810<br />
Other equity consists of Step-up Tier one Insurance Capital Securities (STICS) of £810m (2005: £810m) that were issued in 2003 and 2005.<br />
Details of the Company’s STICS are set out in note 39 to the Group’s consolidated financial statements.<br />
188 <strong>Friends</strong> Provident Annual Report & Accounts 2006