Barclays 2009 Annual Report Download - page 230

228 Barclays PLC Annual Report 2009 www.barclays.com/annualreport09
Notes to the accounts
For the year ended 31st December 2009
continued
24 Financial liabilities designated at fair value
2009 2008
Contractual Contractual
amount amount
due on due on
Fair value maturity Fair value maturity
£m £m £m £m
Debt securities 72,191 77,636 61,297 69,197
Deposits 6,275 6,544 10,518 10,109
Other 7,736 8,811 5,077 6,761
Financial liabilities designated at fair value 86,202 92,991 76,892 86,067
At 31st December 2009, the own credit adjustment arose from the fair valuation of £61.5bn of Barclays Capital structured notes (2008: £54.5bn).
The movement in Barclays credit spreads in the year affected the fair value of these notes and as a result revaluation losses of £1,820m were recognised
in trading income (2008: £1,663m gains).
The cumulative own credit net gain that has been recognised on issued notes is £501m at 31st December 2009 (2008: £2,321m).
25 Other liabilities
2009 2008
£m £m
Accruals and deferred income 6,007 6,495
Sundry creditors 5,972 6,049
Obligations under finance leases (Note 37) 122 96
Other liabilities 12,101 12,640
Included in the above are balances of £10,966m (2008: £11,068m) expected to be settled within no more than 12 months after the balance sheet date;
and balances of £1,135m (2008: £1,572m) expected to be settled more than 12 months after the balance sheet date.
Accruals and deferred income includes £108m (2008: £101m) for the Group’s estimated share of levies that will be raised by the Financial Services
Compensation Scheme (FSCS). The provision is based on estimates of the Group’s market participation in the relevant charging periods and the interest
FSCS will pay on the facilities provided by HM Treasury in support of its obligations to depositors of banks declared in default. The total of these facilities
is understood to be some £20bn.
While it is anticipated that the substantial majority of these facilities will be repaid wholly from recoveries from the institutions concerned, there is the risk
of shortfall, such that the FSCS may place additional levies on FSCS participants. It is not currently possible to estimate the amount of potential additional
levies, or the Group’s share, which is expected to be based on a future level of market participation, or the effect that such levies may have upon operating
results in any particular financial period.
26 Insurance assets and liabilities
Insurance assets
Reinsurance assets are £92m (2008: £123m) and relate principally to the Group’s long-term business. Reinsurers’ share of provisions relating to the Group’s
short-term business are £7m (2008: £32m). The reinsurance assets expected to be recovered after more than one year are £85m (2008: £91m).
Insurance contract liabilities including unit-linked liabilities
Insurance liabilities comprise the following:
2009 2008
£m £m
Insurance contract liabilities:
– linked liabilities 139 125
– non-linked liabilities 1,886 1,908
Provision for claims 115 119
Insurance contract liabilities including unit-linked liabilities 2,140 2,152
Insurance contract liabilities relate principally to the Group’s long-term business. Insurance contract liabilities associated with the Group’s short-term non-life
business are £132m (2008: £73m).