Barclays 2011 Annual Report Download - page 221

Assets and liabilities held at fair value
This section presents information regarding assets and liabilities the Group holds and recognises
at fair value. Fair value refers to the price that would be received to sell an asset or the price that
would be paid to transfer a liability in an arms length transaction with a willing counterparty which
may be an observable market price or, where there is no quoted price for the instrument, may be
estimated based on available market data. Detail regarding the Group’s approach to managing
market risk can be found on pages 121 to 129.
15 Trading portfolio
Accounting for trading portfolio assets and liabilities
In accordance with IAS 39, all assets and liabilities held for trading purposes are held at fair value with gains and losses arising from changes in fair
value taken to the income statement in net trading income (Note 5).
2011
£m
2010
£m
Debt securities and other eligible bills 123,364 139,240
Equity securities 24,861 25,613
Traded loans 1,374 2,170
Commodities 2,584 1,844
Trading portfolio assets 152,183 168,867
Debt securities and other eligible bills (35,063) (64,607)
Equity Securities (10,741) (7,568)
Commodities (83) (518)
Trading portfolio liabilities (45,887) (72,693)
16 Financial assets designated at fair value
Accounting for financial assets designated at fair value
In accordance with IAS 39, financial assets may be designated at fair value, with gains and losses taken to the income statement in net trading
income (Note 5) and net investment income (Note 6). The Group has the ability to do this when holding the instruments at fair value reduces an
accounting mismatch (caused by an offsetting liability or asset being held at fair value), is managed by the Group on the basis of its fair value, or
includes terms that have substantive derivative characteristics (Note 17 Derivative financial instruments).
2011
£m
2010
£m
Loans and advances 21,960 22,352
Debt securities 2,095 1,918
Equity securities 4,018 5,685
Reverse repurchase agreements 5,779 7,559
Customers’ assets held under investment contracts 1,302 1,429
Other financial assets 1,795 2,542
Financial assets designated at fair value 36,949 41,485
The total portfolio of linked liabilities to customers under investment contracts also includes £379m (2010: £518m) reported within cash and balances
at central banks. The carrying value of the total portfolio assets equals the carrying value of liabilities to customers under investment contracts shown in
Note 19. Any change in the value of assets results in an equal but opposite change in the value of amounts due to the policyholders. Therefore, the
Group is not exposed to the financial risks inherent in the investments.
Barclays PLC Annual Report 2011 www.barclays.com/annualreport 219
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