Annual report and accounts 2009 (PDF) - Coventry Building Society

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NOTES TO THE ACCOUNTS(continued)41. RELATED PARTY TRANSACTIONS (continued)TRANSACTIONS WITH KEY MANAGEMENT PERSONNELTransactions with key management personnel are on the same terms and conditions applicable to members and otheremployees within the Society.In accordance with Section 68 of the Act, the Society maintains a register of loans falling within Section 65 made to directorsand connected persons. A statement containing requisite particulars of such transactions may be inspected by members atthe Society’s AGM or at the Registered Office of the Society during the period 15 days prior to the AGM.The directors are considered to be the only ‘key management’ for the purposes of the related party transactions disclosuresunder IAS 24.TRANSACTIONS WITH GROUP COMPANIESTransactions with Group companies arise in the normal course of business. Interest on outstanding loans and depositsaccrues at a transfer price rate agreed between the Society and its subsidiaries.The Society has made unsecured loans of £702.8 million (2008 - £1,041.2 million) to its wholly owned operating subsidiaryGodiva Mortgages Limited during the year. Total loans to this subsidiary amounted to £2,671.2 million (2008 - £1,968.4million) at the year end, on which £95.9 million (2008 - £88.8 million) interest was earned. Management recharges totalled£1.7 million (2008 - £1.6 million).The Society also had loans repaid of £158.8 million (2008 – loans made of £2,801.1 million) from its subsidiary CoventryBuilding Society Covered Bonds LLP (see note 23) during the year. Total loans to this subsidiary amounted to £2,642.3million (2008 - £2,801.1 million) at the year end, on which £109.0 million (2008 – £58.9 million) interest was earned.74
42. NOTES TO THE CASH FLOW STATEMENTSGroup Society Group Society2009 2009 2008 2008£m £m £m £mNon-cash items included in profit before taxNet increase in impairment provisions 19.9 14.3 32.3 30.2Depreciation and amortisation 6.7 6.7 6.0 6.0Interest on subordinated liabilities 4.0 4.0 4.0 4.0Interest on subscribed capital 12.2 12.2 12.2 12.2Increase in fair value adjustment of hedged risk 119.1 119.3 (70.4) (70.2)Other non-cash movements 2.1 2.1 (21.4) (15.1)164.0 158.6 (37.3) (32.9)Changes in operating assetsDecrease in loans to creditinstitutions and other liquid assets 54.3 54.3 1,678.8 1,678.8Increase in loans and advances to customers (921.8) (208.6) (1,356.8) (318.6)Decrease/(increase) in prepayments and accrued income 3.6 3.6 (2.8) (2.7)Increase in other assets (1.3) (1.3) (1.6) (1.6)(865.2) (152.0) 317.6 1,355.9Changes in operating liabilitiesIncrease in shares 973.5 973.5 2,039.9 2,039.9Decrease in deposits and other borrowings (341.7) (341.7) (731.5) (731.5)Increase/(decrease) in debt securities in issue 206.5 206.5 (555.3) (555.3)(Decrease)/increase in accruals and deferred income (149.7) (149.7) 6.6 6.7Increase in other liabilities 2.5 2.3 2.7 2.7691.1 690.9 762.4 762.5Cash and cash equivalentsCash and balances with the Bank of England (note 18) 287.6 285.4 232.5 230.6Due from other banks (note 19) 40.5 40.5 128.0 128.0328.1 325.9 360.5 358.6Cash and cash equivalents excludes the balance which the Society is required to maintain with the Bank of England which, at 31December 2009, amounted to £14.6 million (2008 - £14.5 million).75
Page 1 and 2:
ANNUAL REPORT & ACCOUNTS 2009
Page 3:
ChairmanDavid HardingDeputy Chairma
Page 11 and 12:
DIRECTORS’ REPORTBUSINESS OBJECTI
Page 13 and 14:
Financial performanceThe Society ac
Page 15 and 16:
ASSETSThe assets of the Group incre
Page 17 and 18:
KEY PERFORMANCE INDICATORSNET MORTG
Page 19 and 20:
Remuneration CommitteeConsisting of
Page 21 and 22:
RISK MANAGEMENT REPORTPRINCIPAL RIS
Page 23 and 24:
CORPORATE GOVERNANCEThe board is ac
Page 25 and 26: APPOINTMENTS TO THE BOARDThe appoin
Page 27 and 28: DIRECTORS’ REMUNERATION REPORTINT
Page 29 and 30: STATEMENT OF DIRECTORS’RESPONSIBI
Page 31 and 32: OPINIONIn our opinion:the Annual Ac
Page 33 and 34: BALANCE SHEETSas at 31 December 200
Page 35 and 36: CASH FLOW STATEMENTSfor the year en
Page 37 and 38: Improvements to IFRSThe improvement
Page 39 and 40: FINANCIAL LIABILITIESFinancial liab
Page 41 and 42: PENSION COSTSThe Society operates b
Page 43 and 44: Loan impairment and other provision
Page 45 and 46: 7. OTHER OPERATING INCOMEGroup Soci
Page 47 and 48: 11. DIRECTORS’ EMOLUMENTS (contin
Page 49 and 50: 12. PENSION SCHEME (continued)2009
Page 51 and 52: 13. IMPAIRMENT PROVISIONS ON LOANS
Page 53 and 54: 14. PROVISION FOR FSCS LEVIESAll de
Page 55 and 56: 20. DEBT SECURITIESGroup Society Gr
Page 57 and 58: 21. DERIVATIVES AND OTHER FINANCIAL
Page 59 and 60: 24. INTANGIBLE FIXED ASSETSGroup So
Page 61 and 62: 26. DEFERRED TAXDeferred tax assets
Page 63 and 64: 32. OTHER LIABILITIESGroup Society
Page 65 and 66: 38. FINANCIAL COMMITMENTSGroup Soci
Page 67 and 68: 40. FINANCIAL INSTRUMENTS (continue
Page 75: 41. RELATED PARTY TRANSACTIONSULTIM
Page 79 and 80: 2. OTHER PERCENTAGES2009 2008% %As
Page 81 and 82: 3. INFORMATION RELATING TO DIRECTOR
Page 84: www.thecoventry.co.ukCoventry Build
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Annual report and accounts 2009 (PDF) - Coventry Building Society

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