Barclays 2004 Annual Report Download - page 207

Barclays PLC Annual Report 2004
205
52 Differences between UK GAAP and US GAAP accounting principles (continued)
The following table provides the Group’s balance sheet on a UK presentation, incorporating only those adjustments required under US GAAP that
are discussed on pages 196 to 202.
2004 2003
£m £m
Cash and balances at central banks 48,855 50,518
Items in course of collection from other banks 1,772 2,006
Treasury bills and other eligible bills 5,002 5,359
Loans and advances to banks 57,380 48,830
Loans and advances to customers 279,438 229,562
Debt and equity securities 151,242 112,450
Interests in associated undertakings and joint ventures 448 428
Intangible and tangible fixed assets 6,537 6,377
Other assets (including prepayments and accrued income) 35,128 29,263
Retail life-fund assets attributable to policyholders 68,778 57,176
Total assets 654,580 541,969
Deposits by banks 139,461 127,591
Customer accounts 235,599 188,218
Items in course of collection to other banks 1,205 1,286
Debt securities in issue 78,989 54,647
Other liabilities (including accruals and deferred income) 97,826 81,637
Provisions for liabilities and charges
– deferred taxation 575 636
– other provisions for liabilities and charges 1,750 1,380
Subordinated liabilities 10,693 10,634
Minority interests – equity and non-equity 2,751 1,934
Shareholders’ equity 16,953 16,830
Retail life-fund liabilities attributable to policyholders 68,778 57,176
Total liabilities and shareholders’ funds 654,580 541,969
Segmental analysis of the Group is provided in Note 48, Segmental analysis. The significant differences for each segment under US GAAP are
in respect of netting adjustments as disclosed in Note 52(w), the treatment of insurance products, the consolidation of certain entities and
securitisation adjustment. The impact of these adjustments is to increase the total assets of Barclays Capital by £46,750m (2003: £29,672m), increase
the total assets of Barclays Global Investors by £68,534m (2003: £58,062m) and decrease the total assets of Barclaycard by £3,122m (2003: £2,350m).
(a) Goodwill
During the year, the Group has reviewed the carrying value of its goodwill based on expected future earnings and considered that there was no
impairment to be recognised, with the following exceptions. Goodwill recorded by the Group under US GAAP includes amounts related to interests
acquired following the restructuring of businesses to which the Group had previously advanced funds. During 2004, the Group identified an excess in the
carrying value of the reporting units over their implied fair value and recorded an impairment charge of £56m (2003: £nil). The impairment was based
on revised cash flow projections which were lower than forecasted due to going concern issues within these businesses. Further, a partial write-down of
£12m (2003: £nil) was recorded in relation to a Group entity acquired prior to 1st January 1998 in respect of which the goodwill has been written off to
reserves under UK GAAP. The impairment was due to achieved cash flows being lower than those required to support the carrying value of goodwill.
The current carrying value of goodwill for US GAAP purposes has been allocated to the reportable business clusters of the Group:
Reallocation
At beginning between Exchange
of year clusters Additions Disposals Impairment and other 2004
£m £m £m £m £m £m £m
UK Retail Banking 2,692 –––––2,692
UK Business Banking 63 – 17 (1) (17) – 62
Private Clients 546 – 2 – – – 548
International 461 8 16 – (12) (19) 454
Barclaycard 245 – 90 – – 1 336
Barclays Capital 81 – – – (39) – 42
Barclays Global Investors 80 (8) 47 – – (3) 116
Head office functions and other operations 10 –––––10
4,178 – 172 (1) (68) (21) 4,260