Barclays 2006 Annual Report Download - page 165

Consolidated accounts Barclays PLC
Accounting presentation
Barclays PLC
Annual Report 2006 161
Financial statements
3
Changes in Accounting Presentation
In order to provide more relevance to users and to enhance the
comparability of its financial statement presentation, the Group has
reformatted the income statement, the balance sheet, the statement of
cash flows and certain notes to the accounts, including the presentation
of discrete notes that contain information regarding securitisations and
leasing disclosed elsewhere in the accounts for 2005. Where appropriate,
comparative figures have been re-presented to conform with the current
year presentation. Previously reported amounts of assets, liabilities, equity,
profits and changes in cash and cash equivalents have not been affected
by the changes.
Changes in presentation affecting cash flows in 2005 and 2004 have
been disclosed in Note 42.
Future Accounting Developments
IFRS 7 (‘Financial Instruments Disclosures’) and an amendment to IAS 1
(‘Presentation of Financial Statements’) on capital disclosures were
issued by the IASB in August 2005 for application in accounting periods
beginning on or after 1st January 2007 and have been adopted by the
European Commission. The new or revised disclosures will be adopted
by the Group for reporting in 2007.
The following International Financial Reporting Interpretations Committee
(IFRIC) interpretations issued during 2005 and 2006 which first apply to
accounting periods beginning on or after 1st January 2007 are not
expected to result in any changes to the Group’s accounting policies:
•Interpretation 7 – Applying the Restatement Approach under
IAS 29 Financial Reporting in Hyperinflationary Economies
•Interpretation 8 – Scope of IFRS 2
•Interpretation 9 – Reassessment of Embedded Derivatives
•Interpretation 10 – Interim Financial Reporting and Impairment
Consideration will be given during 2007 to the implications, if any, of the
following IFRIC interpretations issued during 2006 which would first
apply to the Group accounting period beginning on 1st January 2008:
•IFRIC 11 IFRS 2 – Group and Treasury Share Transactions
• IFRIC 12 – Service Concession Arrangements
IFRS 8 Operating Segments was issued in November 2006 and would
first be required to be applied to the Group accounting period beginning
on 1st January 2009. The standard replaces IAS 14 Segmental Reporting
and would align operating segmental reporting with segments reported
to senior management as well as requiring amendments and additions
to the existing segmental reporting disclosures. The Group is
considering the advantages that permitted early adoption in 2007
may make to the transparency of the segmental disclosures.
US GAAP
Significant differences exist between accounting principles generally
accepted under IFRS and those generally accepted in the US. The effect
of US GAAP on profit attributable to equity holders of the parent and
shareholders’ equity excluding minority interest for Barclays PLC Group
is set out in Note 60.
Acquisitions
2006: On 1st November 2006, Barclays Bank PLC acquired the US
mortgage servicing business of HomEq Servicing Corporation from
Wachovia Corporation.
2005: On 1st June 2005, Barclays Asset and Sales Finance (BASF)
acquired a 51% share and controlling stake in Fiat’s Iveco Vehicle
Finance Business. The transaction will expand BASF’s commercial
vehicle expertise.
On 30th June 2005, EnterCard, the joint venture between Barclays Bank
PLC and FöreningsSparbanken (also known as Swedbank), which was
announced on 4th February 2005, began operations. Barclays Bank PLC
has a 50% economic interest in the joint venture. EnterCard provides
credit cards in the Nordic market, initially in Sweden and Norway.
On 1st July 2005, Barclays acquired the wealth business of ING
Securities Bank (France) consisting of ING Ferri and ING Private Banking.
On 9th May 2005, Barclays announced the terms of a recommended
acquisition of a majority stake in Absa Group Limited (‘Absa’). Barclays has
consolidated Absa from 27th July 2005.
2004: On 11th March 2004, Barclays purchased the remaining 40%
minority share in Barclays Cairo Bank.
On 1st December 2004, Barclays completed the acquisition of Juniper
Financial Corporation from Canadian Imperial Bank of Commerce.
Disposals
2006: On 1st January 2006, Barclays completed the sale of the Barclays
South African branch business to Absa Group Limited. This consists of
the Barclays Capital South African operations and Corporate and
Business Banking activities previously carried out by the South African
branch of International Retail and Commercial Banking – excluding
Absa, together with the associated assets and liabilities.
On 25th July 2006, Barclays Asset & Sales Finance (BASF) disposed of its
interest in its motor vehicle contract hire business, Appleyard Finance
Holdings Limited.
On 31st August 2006, Barclays disposed of Bankhaus Wolbern which
was formerly part of Absa.
On 22nd December 2006 Barclays disposed of its interest in
FirstCaribbean International Bank to Canadian Imperial Bank of
Commerce.
On 31st December 2006, BA&SF disposed of its European Vendor
Finance business, including Barclays Industrie Bank GmbH and Barclays
Technology Finance Ltd, to CIT Group.
2004: On 7th April 2004, Barclays completed the disposal of its
shareholding in Edotech Limited to Astron, the business process
outsourcing group.
Recent developments
On 19th January 2007, Barclays announced that it had entered into an
agreement to purchase EquiFirst Corporation, the non-prime mortgage
origination business of Regions Financial Corporation. Completion is
expected in the first half of 2007, subject to the receipt of the required
licences and applicable regulatory approval.
On 8th February 2007, Barclays completed the acquisition of Indexchange
Investment AG, Germany’s leading provider of exchange traded funds,
from Bayerische Hypo-und Vereinsbank. The transaction was announced
in November 2006.
On 28th February 2007, Barclays completed the acquisition of
approximately 96% of the share capital of Nile Bank in Uganda.
The transaction was announced in December 2006.