Barclays 2013 Annual Report Download - page 299

Note 10: Tax continued
Critical accounting estimates and judgements
The Group is subject to income taxes in numerous jurisdictions and the calculation of the Group’s tax charge and worldwide provisions for income
taxes necessarily involves a degree of estimation and judgement. There are many transactions and calculations for which the ultimate tax
treatment is uncertain and cannot be determined until resolution has been reached with the relevant tax authority. The Group has a number of
open tax returns with various tax authorities to whom we are in active dialogue. Liabilities relating to these open and judgemental matters are
based on estimates of whether additional taxes will be due after taking into account external advice where appropriate. Where the final tax
outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current and deferred income
tax assets and liabilities in the period in which such determination is made. These risks are managed in accordance with the Group’s Tax
Risk Framework.
Deferred tax assets have been recognised based on business profit forecasts. Further detail on the recognition of deferred tax assets is
provided on page 295 in the deferred tax assets and liabilities section of this tax note.
Note 11: Earnings per share
2013
£m
2012
£m
2011
£m
Profit/(loss) attributable to equity holders of parent from continuing operations 540 (624) 2,924
Dilutive impact of convertible options 1 – –
Profit/(loss) attributable to equity holders of parent from continuing operations
including dilutive impact of convertible options 541 (624) 2,924
2013
million
2012
million
2011
million
Basic weighted average number of shares in issuea 14,308 13,045 12,792
Number of potential ordinary shares 360 389 538
Diluted weighted average number of shares 14,668 13,434 13,330
Basic earnings per share Diluted earnings per shareb
2013
p
2012
p
2011
p
2013
p
2012
p
2011
p
Earnings/(loss) per ordinary share from continuing operations 3.8 (4.8) 22.9 3.7 (4.8) 21.9
The calculation of basic earnings per share is based on the profit attributable to equity holders of the parent and the number of basic weighted
average number of shares excluding treasury shares held in employee benefit trusts or held for trading. When calculating the diluted earnings per
share, the weighted average number of shares in issue is adjusted for the effects of all dilutive potential ordinary shares held in respect of Barclays
PLC, totalling 360 million (2012: 389 million) shares. In addition, the profit attributable to equity holders of the parent is adjusted for the dilutive
impact of the potential conversion of outstanding options held in respect of Barclays Africa Group Limited. The decrease in the number of
potential ordinary shares is primarily driven by the impact of the increase in the average share price to £2.73 (2012: £2.14) on the 756 million
(2012: 820 million) outstanding options granted under employee share schemes, which have strike prices ranging from £1.30 to £4.59 with an
average of £2.60 (2012: £3.28).
Of the total number of employee share options and share awards at 31 December 2013, 16 million were anti-dilutive (2012: 145 million).
Note 12: Dividends on ordinary shares
The Directors have approved a final dividend in respect of 2013 of 3.5p per ordinary share of 25p each which will be paid on 28 March 2014 to
shareholders on the Share Register on 21 February 2014. At this date ordinary shares in issue were 16,351m (2012: 12,624m). The financial
statements for the year ended 31 December 2013 do not reflect this dividend, which will be accounted for in shareholders’ equity as an
appropriation of retained profits in the year ending 31 December 2014. The 2013 financial statements include the 2013 interim dividends of £418m
(2012: £367m) and final dividend declared in relation to 2012 of £441m (2011: £366m).
Notes
a The basic weighted average number of shares excludes Treasury shares held in employee benefit trusts or held for trading. The rights issue in October 2013 resulted in the issue
of an additional 3,219m shares. In accordance with IAS 33, a retrospective adjustment has been applied to the basic weighted average number of shares in issue for the prior
periods which has resulted in a movement from a loss per share of 5.1p to a loss per share of 4.8p in 2012 and from an earnings per share of 24.4p to an earnings per share of
22.9p in 2011.
b Potential ordinary shares shall be treated as dilutive when, and only when, their conversion to ordinary shares would increase loss per share.
barclays.com/annualreport Barclays PLC Annual Report 2013 297
The Strategic Report Governance Risk review Financial review Financial statements Shareholder informationRisk management