Barclays 2014 Annual Report Download - page 266

264 I Barclays PLC Annual Report 2014 barclays.com/annualreport
Notes to the financial statements
For the year ended 31 December 2014
1 Significant accounting policies continued
Adoption is not mandatory until periods beginning on or after 1 January 2018. The standard has not been endorsed by the EU. At this stage, it is
not possible to determine the potential financial impacts of adoption on the Group.
In 2014, the IASB issued IFRS 15 Revenue from Contracts with Customers which will replace IAS 18 Revenue and IAS 11 Construction Contracts.
It applies to all contracts with customers except leases, financial instruments and insurance contracts. The standard will establish a more
systematic approach for revenue measurement and recognition. Adoption is not mandatory until periods beginning on or after 1 January 2017.
The standard has not been endorsed by the EU. Adoption of the standard is not expected to have a significant impact.
In addition, the IASB has indicated that it will issue a new standard on accounting for leases. Under the proposals, lessees would be required to
recognise assets and liabilities arising from both operating and finance leases on the balance sheet. The IASB also plans to issue a new standard
on insurance contracts. The Group will consider the financial impacts of these new standards as they are finalised.
Critical accounting estimates and judgements
The preparation of financial statements in accordance with IFRS requires the use of estimates. It also requires management to exercise
judgement in applying the accounting policies. The key areas involving a higher degree of judgement or complexity, or areas where
assumptions are significant to the consolidated and individual financial statements are highlighted under the relevant note. Critical accounting
estimates and judgements are disclosed in:
Page Page
Credit impairment charges and other provisions 268 Fair value of financial instruments 280
Income taxes 271 Provisions 303
Available for sale assets 279 Retirement benefit obligations 323
7. Other disclosures
To improve transparency and ease of reference, by concentrating related information in one place, and to reduce duplication, certain
disclosures required under IFRS have been included within the Risk management section as follows:
Q Segmental reporting on pages 229 to 242;
Q Credit risk management, on pages 128 and 129, including exposures to selected countries;
Q Market risk, on pages 130 and 131;
Q Funding risk – capital, on pages 132 and 133; and
Q Funding risk – liquidity, on page 134.
These are covered by the Audit opinion included on pages 247 to 253.