Barclays 2013 Annual Report Download - page 358

Performance
This section presents information on the Group’s investments in subsidiaries, joint ventures and associates and its interests in structured entities. Detail is also given on securitisation transactions the Group has entered into
and arrangements that are held off-balance sheet.
Note 38: Principal Subsidiaries
Barclays applies IFRS 10 Consolidated Financial Statements. The consolidated financial statements combine the financial statements of
Barclays PLC and all of its subsidiaries. Subsidiaries are entities over which the Group has control. Under IFRS 10, this is when the Group is
exposed or has rights to variable returns from its involvement in the entity and has the ability to affect those returns through its power over the
entity.
The Group reassesses whether it controls an entity if facts and circumstances indicate that there have been changes to its power, its rights to
variable returns or its ability to use its power to affect the amount of its returns.
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 been obtained and they do not result in loss of control.
Barclays adopted IFRS 10 from 1 January 2013. The financial effects of the adoption are set out in Note 46 to these financial statements.
The significant judgements used in applying this policy are set out below.
Accounting for investment in subsidiaries
In the individual financial statements of Barclays PLC, investments in subsidiaries are stated at cost less impairment. Cost includes any directly
attributable costs of the investment.
Principal subsidiaries for the Group are set out below. This includes those subsidiaries that are most significant in the context of the Group’s
business, results or financial position.
Company Name
Principal place of business
or incorporation Nature of business
Percentage
of Voting
rights held
%
Non-
controlling
interests –
proportion of
ownership
interests
%
Non-
controlling
interests –
proportion
of voting
interests
%
Barclays Bank PLC England Banking, holding company 100 12 –
Barclays Capital Securities Limited England Securities dealing 100 – –
Barclays Private Clients International Limited Isle of Man Banking 100* – –
Barclays Securities Japan Limited Japan Securities dealing 100 – –
Absa Bank Limited South Africa Banking 62 38 38
Barclays Bank of Kenya Limited Kenya Banking 43 57 57
Barclays Bank S.A.U. Spain Banking 100* – –
Barclays Capital Inc. United States Securities dealing 100 – –
Barclays Bank Delaware United States Credit card issuer 100 – –
The country of registration or incorporation is also the principal area of operation of each of the above subsidiaries. Investments in subsidiaries
held directly by Barclays Bank PLC are marked *. Information on the Groups subsidiaries, as required by the Companies Act, will be included in the
Annual Return to be filed at the UK Companies House.
Ownership interests are in some cases different to voting interests due to the existence of non-voting equity interests, such as preference shares.
See Note 34, non-controlling interests for more information. The 43% effective voting interest in Barclays Bank of Kenya Limited is derived from
the Group’s 62% interest in Barclays Africa Group Limited which holds a 69% interest in Barclays Bank of Kenya Limited.
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356 Barclays PLC Annual Report 2013
Notes to the financial statements
For the year ended 31 December 2013 continued