Barclays 2005 Annual Report Download - page 275

Barclays PLC
Annual Report 2005 273
3.5
63 Differences between IFRS and US GAAP accounting principles (continued)
(d) Deferred tax
In accordance with SFAS No. 109 ‘Accounting for Income Taxes’, the components of US GAAP deferred tax assets and liabilities are as follows:
2005 2004
£m £m
Deferred tax liabilities:
Deferred tax liabilities under IFRS (see Note 24) 700 1,362
In respect of IFRS/US GAAP reconciling items 116 251
Total deferred tax liabilities 816 1,613
Deferred tax assets:
Deferred tax assets under IFRS (see Note 24) 686 1,388
Add: valuation allowance 252 217
In respect of IFRS/US GAAP reconciling items (441) (350)
Total deferred tax assets before valuation allowance 497 1,255
Less: valuation allowance (252) (217)
Deferred tax assets less valuation allowance 245 1,038
The main components of the tax charge attributable to continuing operations are shown in Note 24 to the accounts on pages 172 and 174.
Included in the tax effect on net income of IFRS/US GAAP reconciling items for 2005 is a credit amount of £215m relating to deferred tax
(2004: charge of £2m).
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 more likely than not that they will be utilised.
(e) Earnings per share
2005 2004
Weighted Weighted
average Per-share average Per-share
Income share no. amount Income share no. amount
£m (in millions) pence £m (in millions) pence
Basic earnings per share
US GAAP net income attributable to equity holders of the parent 2,932 6,337 46.3 3,032 6,381 47.5
Dilutive impact of convertible options (32) –
Potential shares 149 99
Diluted earnings per share 2,900 6,486 44.7 3,032 6,480 46.8
Upon adoption of IFRS, the Group amended the methodology for the calculation of potential shares and the dilutive impact of convertible options.
Had this change been reflected in the US GAAP diluted earnings per share for 2004, the impact would have been a 0.4p decrease in diluted earnings
per share for 2004.
(f) Securities
Unlisted investment equity securities are outside the scope of SFAS 115 ‘Accounting for Certain Investments in Debt and Equity Securities’. Where
the securities are held by an investment company within the Group, the securities are carried at fair value.
All investment securities are classified as being ‘available for sale’ unless the Group has a clear intention and ability to hold them to maturity.
Other securities are classified as trading securities.
The following table shows the gross unrealised losses and fair value for available for sale and held-to-maturity securities, aggregated by investment
category and length of time that individual securities have been in a continuous unrealised loss position at 31st December 2005.
Less than 12 months 12 months or more Total
.
Unrealised Unrealised Unrealised
Fair value losses Fair value losses Fair value losses
Description of securities £m £m £m £m £m £m
Other government 5,274 (23) 4,003 (27) 9,277 (50)
Mortgage backed securities 3–––3–
Corporate issuers 3,116 (26) 6,697 (82) 9,813 (108)
Other public bodies 118 (2) – – 118 (2)
Other issuers 342 (7) 2,034 (2) 2,376 (9)
Total 8,853 (58) 12,734 (111) 21,587 (169)