Barclays 2013 Annual Report Download - page 286

This section describes Barclays significant accounting policies and critical accounting estimates that relate to
the financial statements and notes as a whole. If an accounting policy or a critical accounting estimate relates to
a specific note, the applicable accounting policy and/or critical accounting estimate is contained within the
relevant note.
Note 1: Significant accounting policies
1. Reporting entity
These financial statements are prepared for Barclays PLC and its subsidiaries (the Barclays PLC Group or the Group) under Section 399 of the
Companies Act 2006. The Group is a major global financial services provider engaged in retail banking, credit cards, wholesale banking,
investment banking, wealth management and investment management services. In addition, individual financial statements have been
presented for the holding company.
2. Compliance with International Financial Reporting Standards
The consolidated financial statements of the Group, and the individual financial statements of Barclays PLC, have been prepared in accordance
with International Financial Reporting Standards (IFRS) and interpretations (IFRICs) issued by the Interpretations Committee, as published by
the International Accounting Standards Board (IASB). They are also in accordance with IFRS and IFRIC interpretations endorsed by the
European Union. The principal accounting policies applied in the preparation of the consolidated and individual financial statements are
set out below, and in the relevant notes to the financial statements. These policies have been consistently applied.
3. Basis of preparation
The consolidated and individual financial statements have been prepared under the historical cost convention modified to include the fair
valuation of investment property and particular financial instruments to the extent required or permitted under IFRS as set out in the relevant
accounting policies. They are stated in millions of pounds Sterling (£m), the functional currency of Barclays PLC.
4. Accounting policies
The Group’s significant accounting policies relating to specific financial statement items, together with a description of the accounting
estimates and judgements that were critical to preparing them, are set out under the relevant notes. Accounting policies that affect the
financial statements as a whole are set out below.
(i) Consolidation
Barclays applies IFRS 10 Consolidated Financial Statements.
The consolidated financial statements combine the financial statements of Barclays PLC and all its subsidiaries. Subsidiaries are entities over
which Barclays PLC has control. The Group has control over another entity when the Group has all of the following:
1) power over the relevant activities of the investee, for example through voting or other rights;
2) exposure to, or rights to, variable returns from its involvement with the investee; and
3) the ability to affect those returns through its power over the investee.
The assessment of control is based on the consideration of all facts and circumstances. The Group reassesses whether it controls an investee if
facts and circumstances indicate that there are changes to one or more of the three elements of control.
Intra-group transactions and balances are eliminated on consolidation and consistent accounting policies are used throughout the Group for
the purposes of the consolidation.
Changes in ownership interests in subsidiaries are accounted for as equity transactions if they occur after control has already been obtained
and they do not result in loss of control.
Details of the principal subsidiaries are given in Note 38.
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284 Barclays PLC Annual Report 2013
Notes to the financial statements
For the year ended 31 December 2013