Barclays 2003 Annual Report Download - page 186

Notes to the Accounts
For the Year Ended 31st December 2003
184
61 Differences between UK GAAP and US GAAP accounting principles (continued)
SFAS 132: Employers’ disclosures about pensions and other post-retirement benefits
In December 2003, the FASB issued SFAS No. 132 (revised 2003), ‘Employers’ Disclosures about Pensions and Other Post-retirement Benefits.’
SFAS No. 132 revises employers’ disclosures about pension plans and other post-retirement benefits by requiring additional disclosures such as
descriptions of the types of plan assets, investment strategies, measurement dates, plan obligations, cash flows and components of net periodic
benefit costs recognised during interim periods. The statement does not change the measurement or recognition of the plans.
The additional disclosures for plans established in the UK are generally required for the year ended 31st December 2003 and are included in Note
61(c) below. The remaining disclosures including those in respect of foreign plans are required for years ending after 15th June 2004 and therefore
will be adopted by the Group during the year ended 31st December 2004.
SFAS 150: Accounting for certain financial instruments with characteristics of both liability and equity
In May 2003, the FASB issued SFAS No. 150, ‘Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity’. The
statement changes the accounting for certain financial instruments that, under previous guidance, issuers could account for as equity and requires
that these instruments be classified as liabilities in the statement of financial position. The statement is effective prospectively for financial
instruments entered into or modified after 31st May 2003 and otherwise is effective at the beginning of the first interim period beginning after
15th June 2003.
The Group has adopted the applicable provisions of SFAS No. 150 to all financial instruments entered into or modified after 31st May 2003 during the
year ended 31st December 2003. Adoption did not have a material effect on the Group’s financial condition or results of operations as determined
under US GAAP. The Group will adopt the Standard for other financial instruments during the six months ending 30th June 2004. Management does
not expect adoption to have a material effect on the firm’s financial condition or results of operations as determined under US GAAP.
SOP 03-3: Accounting for Certain Loans or Debt Securities Acquired in a Transfer
The SOP addresses accounting for differences between the contractual cash flows and cash flows expected to be collected from an investor’s initial
investment in loans or debt securities acquired in a transfer if those differences are attributable to credit quality. This SOP is effective for loans
acquired in accounting periods beginning after 15th December 2004. Barclays is currently assessing the impact of this SOP on its US GAAP
reconciliations.
International Financial Reporting Standards (IFRS)
The European Parliament and Council of the European Union issued a regulation in 2002 that will require all EU listed companies to prepare their
consolidated accounts in accordance with IFRS rather than the existing national GAAP. The regulation takes effect from 2005 and consequently the
accounting framework under which the Group reports will change. The Group will produce its consolidated accounts in accordance with IFRS for the
year ended 31st December 2005. Barclays is currently assessing the impact of this change on its US GAAP reconciliations. For further details on the
conversion to IFRS, see pages 118 to 119.