Barclays 2005 Annual Report Download - page 283

Barclays PLC
Annual Report 2005 281
3.5
63 Differences between IFRS and US GAAP accounting principles (continued)
(n) Asset retirement obligation
The Group recognises a liability for an asset retirement obligation and capitalises an amount for asset retirement cost. The entity estimates the initial
fair value of the liability using an expected present value technique.
2005 2004
£m £m
Asset retirement obligations at beginning of year 40 4
Liability incurred in the period –36
Asset retirement obligations at end of year 40 40
This is to cover Barclays legal obligation associated with the retirement of certain operating leases.
(o) Total assets
Netting
Differences between the netting requirements of IFRS and US GAAP (FIN 39) result in a net reduction in total assets reported for US purposes of
£85,297m. In 2004 there was an increase in total assets for US purposes of £59,969m reflecting the fact that the IFRS 2004 comparatives do not
include the impact of IAS 32 and IAS 39.
2005 2004
£m £m
Derivatives (104,662) n/a
Securities (2,491) n/a
Receivables and payables in respect of unsettled trades (8,292) (7,250)
Loans and deposits 9,567 17,572
Repurchase and reverse repurchase agreements n/a 18,572
Cash collateral held against derivatives n/a 14,787
Securities lending and borrowing agreements n/a 1,603
Non-cash collateral on stock lending 20,581 14,685
Total (85,297) 59,969
Additionally in 2004, gross assets and liabilities under US GAAP increased by £60,400m due to the inclusion of certain BGI insurance products.
These products are accounted for in accordance with SFAS 97, and accordingly, the assets and liabilities associated with these products are recorded
on the balance sheet. From 1st January 2005, these assets and liabilities are stated gross on the balance sheet under both IFRS and US GAAP.
The inclusion of acceptances resulted in an increase in total assets under US GAAP of £253m (2004: £263m).