Barclays 2004 Annual Report Download - page 211

Barclays PLC Annual Report 2004
209
52 Differences between UK GAAP and US GAAP accounting principles (continued)
(c) Pensions and post-retirement benefits (continued)
The weighted-average assumptions used to determine net periodic benefit cost for pensions are as follows:
2004 2003 2002
%%%
Discount rate 5.4 5.3 6.0
Rate of compensation increase 4.1 3.8 4.0
Expected long-term return on plan assets 6.8 6.8 7.5
The weighted-average assumptions used to determine benefit obligations for pensions are as follows:
As at 31st December
2004 2003 2002
%%%
Discount rate 5.6 5.4 5.3
Rate of compensation increase 4.3 4.1 3.8
Details of the post-retirement health care expense under UK GAAP are given in Note 49 to the accounts.
The accounting for the post-retirement benefits charge assumed a discount rate of 6.25% (2003: 6.25%, 2002: 6.75%) for US benefits and 5.6%
(2003: 5.4%, 2002: 5.3%) for UK benefits on a weighted average basis.
The additional pensions cost of £180m (2003: £139m, 2002: £187m) includes a £8m credit (2003: £8m, 2002: £8m) relating to amortisation of
an additional fair value adjustment under US GAAP. This is being amortised over the expected life of the relevant pension liability.
(d) Deferred tax
In accordance with SFAS No. 109 ‘Accounting for Income Taxes’, the components of the net US GAAP deferred tax liability are as follows:
2004 2003
£m £m
Deferred tax liabilities:
Leasing transactions (759) (739)
In respect of UK/US GAAP reconciling items (224) (336)
Other (630) (592)
Total deferred tax liabilities (1,613) (1,667)
Deferred tax assets:
Specific allowances 26 25
General allowance 226 252
Tax losses 299 236
Capital allowances 107 90
In respect of UK/US GAAP reconciling items 387 311
Other 210 224
Total deferred tax assets before valuation allowance 1,255 1,138
Less: valuation allowance (217) (107)
Deferred tax assets less valuation allowance 1,038 1,031
Net deferred tax liability under US GAAP (575) (636)
The main components of the tax charge attributable to continuing operations are shown in Note 8 to the accounts on pages 143 and 144.
Included in the tax effect on net income of UK/US GAAP reconciling items for 2004 is a credit amount of £19m relating to deferred tax
(2003: £4m, 2002: £59m).
The valuation allowance relates to the Group’s capital losses and unrelieved overseas tax losses. These assets will be recognised in the future
when it becomes likely that they will be utilised.