Barclays 2014 Annual Report Download - page 338

336 I Barclays PLC Annual Report 2014 barclays.com/annualreport
Notes to the financial statements
41 Related party transactions and Directors’ remuneration
Related party transactions
Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in
making financial or operational decisions, or one other party controls both. The definition includes subsidiaries, associates, joint ventures and the
Group’s pension schemes.
Subsidiaries
Transactions between Barclays PLC and its subsidiaries also meet the definition of related party transactions. Where these are eliminated on
consolidation, they are not disclosed in the Group financial statements. Transactions between Barclays PLC and its subsidiary, Barclays Bank PLC
are fully disclosed in Barclays PLC’s balance sheet and income statement. A list of the Group’s principal subsidiaries is shown in Note 36.
Associates, joint ventures and other entities
The Group provides banking services to its associates, joint ventures, the Group pension funds (principally the UK Retirement Fund) and to entities
under common directorships, providing loans, overdrafts, interest and non-interest bearing deposits and current accounts to these entities as well
as other services. Group companies also provide investment management and custodian services to the Group pension schemes. The Group also
provides banking services for unit trusts and investment funds managed by Group companies, which are not individually material. All of these
transactions are conducted on the same terms as third-party transactions. Summarised financial information for the Group’s investments in
associates and joint ventures is set out in Note 38.
Entities under common directorships
The Group enters into normal commercial relationships with entities for which members of the Group’s Board also serve as Directors. The
amounts included in the Group’s financial statements relating to such entities that are not publicly listed are shown in the table below under
Entities under common directorships.
Amounts included in the Group’s financial statements, in aggregate, by category of related party entity are as follows:
Associates
£m
Joint
ventures
£m
Entities
under
common
directorships
£m
Pension
funds, unit
trusts and
investment
funds
£m
For the year ended and as at 31 December 2014
Income (5) 9 51 4
Impairment – (1) – –
Total assets 130 1,558 219 –
Total liabilities 264 188 36 149
For the year ended and as at 31 December 2013
Income (10) 24 1 3
Impairment (3) (4) – –
Total assets 116 1,521 33 5
Total liabilities 278 185 73 207
For the year ended and as at 31 December 2012
Income (3) 38 1 20
Impairment – (5) – –
Total assets 137 1,657 198 –
Total liabilities 18 585 94 152
Guarantees, pledges or commitments given in respect of these transactions in the year were £911m (2013: £961m) predominantly relating to joint
ventures. No guarantees, pledges or commitments were received in the year. Derivatives transacted on behalf of the pensions funds, unit trusts
and investment funds were £587m (2013: £613m).
Key Management Personnel
The Group’s Key Management Personnel, and persons connected with them, are also considered to be related parties for disclosure purposes. Key
Management Personnel are defined as those persons having authority and responsibility for planning, directing and controlling the activities of
Barclays PLC (directly or indirectly) and comprise the Directors of Barclays PLC and the Officers of the Group, certain direct reports of the Chief
Executive and the heads of major business units and functions.
There were no material related party transactions with entities under common directorship where a Director or other member of Key Management
Personnel (or any connected person) is also a Director or other member of Key Management Personnel (or any connected person) of Barclays.
Other disclosure matters
The notes included in this section focus on related party transactions, auditors’ remuneration and directors’
remuneration. Related parties include any subsidiaries, associates, joint ventures, entities under common directorships
and Key Management Personnel.