Barclays 2012 Annual Report Download - page 274

20 Finance leases continued
Finance lease liabilities
The Group leases items of property, plant and equipment on terms that meet the definition of finance leases. Finance lease liabilities are included
within accruals, deferred income and other liabilities (Note 26).
As at 31 December 2012, the total future minimum payments under finance leases were £35m (2011: £64m), of which £5m (2011: £10m) was due
within one year. As at 31 December 2012, the carrying amount of assets held under finance leases was £22m (2011: £28m).
21 Reclassification of financial assets held for trading
Accounting for the reclassification of financial assets held for trading
In accordance with IAS 39, where the Group no longer intends to trade in financial assets it may transfer them out of the held for trading
classification and measure them at amortised cost if they meet the definition of a loan. The initial value used for the purposes of establishing
amortised cost is fair value on the date of the transfer.
Prior to 2010, the Group reclassified certain financial assets, originally classified as held for trading but subsequently deemed to be not held for
trading purposes, to loans and receivables.
The carrying value of the securities reclassified into loans and receivables has decreased from £7,652m to £5,188m primarily as a result of sales
and paydowns of the underlying securities offset by increases due to the reversal of the discount on reclassification and FX movements.
Sales of securities from the 16 December 2008 reclassification totalled £151m (2011: £91m) and sales of securities from the 25 November 2009
reclassification totalled £1,316m (2011: £482m).
The following table provides a summary of the assets reclassified from held for trading to loans and receivables.
2012 2011
Carrying
value
£m
Fair
value
£m
Carrying
value
£m
Fair
value
£m
As at 31 December
Trading assets reclassified to loans and receivables
Reclassification 25 November 2009 5,140 4,996 7,434 7,045
Reclassification 16 December 2008 48 50 218 217
Total financial assets reclassified to loans and receivables 5,188 5,046 7,652 7,262
If the reclassifications had not been made, the Group’s income statement for 2012 would have included a net gain on the reclassified trading
assets of £247m (2011: loss of £152m).
22 Reverse repurchase and repurchase agreements including other similar lending and borrowing
Reverse repurchase agreements (and stock borrowing or similar transaction) are a form of secured lending whereby the Group provides a loan or cash
collateral in exchange for the transfer of collateral, generally in the form of marketable securities subject to an agreement to transfer the securities back
at a fixed price in the future. Repurchase agreements are where the Group obtains such loans or cash collateral, in exchange for the transfer of collateral.
Accounting for reverse repurchase and repurchase agreements including other similar lending and borrowing
The Group purchases (a reverse repurchase agreement) or borrows securities subject to a commitment to resell or return them. The securities
are not included on the balance sheet as the Group does not acquire the risks and rewards of ownership. Consideration paid (or cash collateral
provided) is accounted for as a loan asset at amortised cost.
The Group may also sell (a repurchase agreement) or lend securities subject to a commitment to repurchase or redeem them. The securities
are retained on the balance sheet as the Group retains substantially all the risks and rewards of ownership. Consideration received (or cash
collateral provided) is accounted for as a financial liability at amortised cost.
As at 31 December 2012
£m
2011
£m
Assets
Banks 64,616 64,470
Customers 112,340 89,195
Reverse repurchase agreements and other similar secured lending 176,956 153,665
Liabilities
Banks 87,815 69,544
Customers 129,527 137,748
Repurchase agreements and other similar secured borrowing 217,342 207,292
barclays.com/annualreport272 I Barclays PLC Annual Report 2012
Notes to the financial statements
For the year ended 31 December 2012 continued