IBRC annual report for 2011 - Irish Bank Resolution Corporation ...

Irish Bank Resolution Corporation LimitedAnnual Report & Accounts 201112. Auditor's remuneration 2011 2010€m €mFees payable to Deloitte & Touche in Ireland:Audit of Group and Bank financial statements 0.7 0.6Other assurance services 0.3 0.3Tax advisory services - 0.1Other non-audit services 0.1 0.21.1 1.2Fees payable to other Deloitte & Touche firms outside of Ireland:Audit of Group and Bank financial statements 0.2 0.3Other assurance services 0.1 0.1Other non-audit services 0.1 -0.4 0.4Total 1.5 1.6All amounts are stated exclusive of VAT.The Audit Committee has reviewed the level of fees and is satisfied that it has not affected the independence of the auditor.Auditor's remuneration is included within administrative expenses.13. Loss on transfer of assets and liabilities 2011 2010€m €mNet consideration received 3,719 -Net carrying value of assets and liabilities transferred (3,933) -Total loss on transfer (214) -On 24 February 2011, under powers granted by CISA, the Minister for Finance, in consultation with the Governor of the CentralBank of Ireland, announced the immediate transfer by way of the AIB Transfer Order (note 1.1) of the majority of the Bank'sIrish and UK deposits and €12.2bn nominal of NAMA senior bonds at a price of 98.5% from the Bank (i) to AIB in the case ofthe Irish deposits and NAMA senior bonds, and (ii) to its UK subsidiary, AIB UK in the case of the UK deposits. The Bank's sharesin its Isle of Man subsidiary, Anglo Irish Bank Corporation (International) PLC, were also transferred to AIB at the same time atapproximately net asset value.In return for transferring its Irish and UK deposits the Bank was required to pay the AIB Group €1.6bn in excess of book value.The AIB Transfer Order followed on from the Direction Order, which directed the Bank to begin an auction process, operatedby the NTMA, to transfer deposits and certain assets held by the Bank to a third-party financial institution or institutions.A Transfer Support Agreement (‘TSA’) was concluded between the Bank, AIB and AIB UK at the time of the AIB Transfer Order.Under the terms of the TSA, the Bank provided AIB and AIB UK with an indemnity, subject to certain exclusions from liability, inrespect of certain direct liabilities which could arise in connection with the deposits, assets or entity which transferred(note 48).The TSA also defined the services to be provided by the Bank to AIB and AIB UK, and by AIB and AIB UK to the Bank, until themigration of the transferred deposits and staff from the Bank's systems and premises is complete. The services are widerangingand include business, infrastructure and administrative support. The service levels applicable to the relevant services aredesigned to ensure that the transferred assets and liabilities will be maintained to the same level of service as they had beenmaintained by the Bank, or its third party service providers, in the twelve months prior to the date of transfer. As the terms ofthe TSA were, by necessity due to the short time-frame between the identification of the transferee and the time of the AIBTransfer Order, quite high-level, the TSA provided for a more detailed transitional services agreement to be entered intobetween the parties post-Transfer Order. The TSA was signed on 1 July 2011.67