Barclays 2003 Annual Report Download - page 204

Notes to the Accounts
For the Year Ended 31st December 2003
202
61 Differences between UK GAAP and US GAAP accounting principles (continued)
(v) Total assets (continued)
Netting
Certain transactions have been netted in the UK as required under FRS 5. To the extent these arrangements do not satisfy the requirement of FIN 39
and FIN 41, total assets have been increased by £45,277m (2002: £43,216m).
2003 2002
£m £m
Repurchase and reverse repurchase agreements 9,684 10,041
Securities lending and borrowing agreements 18,743 17,259
Receivables and payables in respect of unsettled trades (6,030) (2,420)
Cash collateral held against derivatives 7,964 5,750
Loans and deposits 14,916 12,586
Total 45,277 43,216
Gross assets and liabilities have been increased by £49,099m (2002: £36,541m) due to inclusion of certain BGI insurance products. The legal form of
these products is similar to insurance contracts, which are accounted for in accordance with SFAS 97. Accordingly, the assets and liabilities associated
with these products are recorded on the balance sheet.
The inclusion of acceptances resulted in an increase in total assets under US GAAP of £654m (2002: £2,588m).
(w) Profit and loss account presentation
There are certain differences in the presentation of the profit and loss account between UK GAAP and US GAAP. Profits or losses on disposal of
Group undertakings (2003: £4m profit, 2002: £3m loss, 2001: £4m loss) would be classified as operating income or expense under US GAAP rather
than being shown separately. Under US GAAP, net interest received (2003: £68m, 2002: £75m, 2001: £387m paid) relating to trading activities
would be shown within net interest revenue, rather than included in dealing profits. Reconciling differences arising from associated undertakings
(2003: £7m profit, 2002: £6m profit, 2001: £nil) would be included within a single component of net income.
(x) Changes in UK GAAP
During 2003, Barclays restated the 2002 shareholders’ funds under UK GAAP in respect of changes of accounting policy for the purchase and sales
of own shares, as required by UITF 37, as described on page 118. The restatement had no impact on net income. There has been no effect on the
reported US GAAP figures.
Shareholders’ funds Original Restated
reconciliation Prior year reconciliation
item adjustment item
£m £m £m
2002
Own shares (59) 4 (55)
Total affected reconciling items (59) 4 (55)
62 Consolidated statement of cash flows
Interest paid in the year, including amounts relating to trading activities, was £10,768m (2002: £10,167m, 2001: £13,319m).
For the purposes for the US GAAP cash flow, cash and cash equivalents are defined as short-term highly liquid investments which are readily
convertible into known amounts of cash with original maturity of three months.
Set out below, for illustrative purposes, is a summary consolidated statement of cash flows presented on a US GAAP basis:
2003 2002 2001
£m £m £m
Net cash provided by operating activities 13,367 15,267 6,440
Net cash used in investing activities (30,683) (46,968) (32,413)
Net cash provided by financing activities 16,846 34,977 36,223
Effect of exchange rate changes on cash and due from banks 750 990 143
Net increase/(decrease) in cash and cash equivalents 280 4,266 10,393
Cash and cash equivalents at beginning of year 50,238 45,972 35,579
Cash and cash equivalents at end of year 50,518 50,238 45,972