Barclays 2006 Annual Report Download - page 265

Barclays PLC
Annual Report 2006 261
Financial statements
3
60 Differences between IFRS and US GAAP accounting principles (continued)
Core Licences
deposit Customer and other Other
intangible Brand lists contracts software 2005
2005 £m £m £m £m £m £m
Cost or valuation
At beginning of year 513 33 313 57 12 928
Acquisitions/disposals as a result of business combinations 186 110 338 2 17 653
Additions – – 8 76 3 87
Fully amortised assets written off – (25) – – – (25)
Exchange/other 7 3 33 2 – 45
Cost carried forward 706 121 692 137 32 1,688
Accumulated amortisation and impairment
At beginning of year (284) (29) (129) (6) (4) (452)
Amortisation charge for year (80) (7) (58) (9) (6) (160)
Impairment charge – – – (1) – (1)
Fully amortised assets written off – 25 – – – 25
Exchange/other 5 2 (5) (1) – 1
Amortisation carried forward (359) (9) (192) (17) (10) (587)
Net book value 2005 347 112 500 120 22 1,101
Weighted average amortisation period for additions (months) 334 127 332 78 36 –
The amortisation expense for the net carrying amount of intangible assets is estimated to be £214m in 2007, £98m in 2008, £74m in 2009, £63m in
2010 and £49m in 2011.
(c) Pensions and post-retirement benefits
The US GAAP pension disclosures below reflect the following Group pension schemes; the UK Retirement Fund (UKRF), Barclays Capital Staff
Pension Plan and Barclays Capital Pension Restoration Plan (Barclays Capital schemes). Together these schemes make up approximately 93% of all
the Group’s schemes in terms of assets and actuarial liabilities. The UKRF is composed of the 1964 Pension Scheme, Retirement Investment Scheme,
Pension Investment Plan, afterwork and the Career Average Section.
The provisions of US GAAP have been applied to the UKRF and certain post-retirement benefit schemes based on a measurement date of
30th September, and to the remaining schemes based on a measurement date of 31st December. The impact of the £350m contribution made to
the UKRF in the fourth quarter of 2006 (£350m in the fourth quarter 2005) on the funded status of the Group’s pension schemes is shown below.
The components of the pension and post-retirements expense (where an actuarial basis is appropriate) which arise under US GAAP are as follows:
2006 2005 2004
Post- Post- Post-
retirement retirement retirement
Pensions benefits Pensions benefits Pensions benefits
£m £m £m £m £m £m
Components of net periodic benefit cost (defined benefit schemes)
Service cost 403 1 361 2 319 1
Interest cost 851 7 808 6 692 5
Expected return on plan assets (926) – (818) – (738) –
Amortisation of transition adjustment –1–1––
Termination benefits(a) 21 – 51 – – –
Recognised net actuarial loss 24 4 40 2 27 2
Prior service cost 1–––––
Net periodic benefit cost 374 13 442 11 300 8
Note
(a) Termination benefits relate to costs incurred to the UKRF when members are made redundant and are permitted to take enhanced benefits in exchange for a reduced
redundancy lump sum.