Barclays 2004 Annual Report Download - page 204

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Notes to the accounts
For the year ended 31st December 2004
52 Differences between UK GAAP and US GAAP accounting principles (continued)
UK GAAP
Own shares
The number of own shares held in the ESOP trust, which are included
in the Group’s accounts, is reduced to the extent that the shares have
vested in accordance with GAAP.
The number of shares which have vested under the ESAS plan has
been reduced for the anticipated level of forfeitures.
Cash flow statement
The cash flow statement is prepared according to the requirements of
FRS 1 (revised). It defines cash as cash and balances at central banks
and loans and advances to banks repayable on demand.
US GAAP
Under SFAS 123, the basic awards under ESAS are fully vested at the
date of grant, and no adjustment is made for forfeitures. Consequently,
the number of own shares held in the ESOP trust which are included in
the Group’s accounts is lower.
The cash flow statement for US GAAP is prepared under SFAS 95,
as amended by SFAS 104. This defines cash as inclusive of cash
equivalents which are short-term highly liquid investments that are
both readily convertible into known amounts of cash and are so
near maturity that they present insignificant risk of changes in value
because of changes in interest rates. Generally only investments
with original maturities of three months or less are included as
cash equivalents.
The two statements differ with regard to the classification of items
within the cash flow statement and with regard to the definition of cash.
Classification Classification
under FRS 1 (revised) under SFAS 95/104
Dividends received Returns on investment Operating activities
and servicing of finance
Dividends paid – equity Equity dividends paid Financing activities
Tax paid Taxation Operating activities
Net change in loans and advances, including finance lease receivables Operating activities Investing activities
Net change in deposits and debt securities in issue Operating activities Financing activities