Barclays 2013 Annual Report Download - page 373

Note 46: Transition Notes – Changes in accounting policies, comparability and other adjustments continued
Consolidated income statement – movement between published and restated
For the year ended 31 December 2012 Published
£m
IFRS 10
£m
IAS 19
revised
£m
Othera
£m
Restated
£m
Continuing operations
Interest income 19,199 12 – – 19,211
Interest expense (7,560) 3 – – (7,557)
Net interest income 11,639 15 – – 11,654
Fee and commission income 10,216 (3) – – 10,213
Fee and commission expense (1,634) (43) – – (1,677)
Net fee and commission income 8,582 (46) – – 8,536
Net trading income 3,025 322 – – 3,347
Net investment income 817 27 – – 844
Net premiums from insurance contracts 896 –––896
Other income 332 –––332
Total income 25,291 318 – – 25,609
Net claims and benefits incurred on insurance contracts (600) –––(600)
Total income net of insurance claims 24,691 318 – – 25,009
Credit impairment charges and other provisions (3,596) 256 – – (3,340)
Net operating income 21,095 574 – – 21,669
Staff costs (10,447) (1) (22) (997) (11,467)
Administration and general expenses (6,988) – – 997 (5,991)
Depreciation of property, plant and equipment (669) –––(669)
Amortisation of intangible assets (435) –––(435)
Provision for PPI redress (1,600) –––(1,600)
Provision for interest rate hedging products redress (850) –––(850)
Operating expenses (20,989) (1) (22) – (21,012)
Share of post–tax results of associates and joint ventures 110 –––110
Profit on disposal of subsidiaries, associates and joint ventures 28 –––28
Gain on acquisitions 2 –––2
Profit before tax 246 573 (22) – 797
Taxation (482) (134) – – (616)
(Loss)/profit after tax (236) 439 (22) – 181
Attributable to:
Equity holders of the Parent (1,041) 439 (22) – (624)
Non–controlling interests 805 –––805
(Loss)/profit after tax (236) 439 (22) – 181
Impact of IAS 19 revised standard on the income statement for the year ending 31 December 2013
The impact of the IAS 19 revised standard is an increase in staff costs of £22m and a decrease in tax of £1m. The movement in the staff cost
relates to the replacement of expected return on assets with net interest income/expense using the scheme discount rate resulting in a further
expense of £113m. This is partially offset by amortisation of unrecognised losses £91m no longer being recognised due to the removal of the
corridor approach, with all actuarial losses recognised immediately on the balance sheet.
In addition, the adoption of the IAS 19 revised standard resulted in the basic earnings per share decreasing 0.1p to 3.8p from 3.9p and the diluted
earnings per share decreasing 0.1p to 3.7p from 3.8p.
Movement between the published and restated statement of comprehensive income for 31 December 2011
In the statement of comprehensive income for the year ending 2012, the adoption of the IAS 19 revised standard resulted in the other
comprehensive income increasing by £748m. This is mainly attributable to the movement which relates to actuarial losses on scheme assets and
liabilities no longer being deferred.
Movement between the published and restated statement of comprehensive income for 31 December 2012
In the statement of comprehensive income for the year ending 2012, the adoption of the IAS 19 revised and IFRS 10 standards resulted in the
other comprehensive loss increasing by £787m.
A major part of the reduction of £1,235m can be attributed to the IAS 19 revised standard which impacted the retirement benefit remeasurements.
The movement is as a result of actuarial losses on scheme assets and liabilities no longer being deferred.
Note
a The Group has also realigned outsourcing costs from administration and general expenses to staff costs in order to more appropriately reflect the nature and internal
management of these costs. The net effect of these movements is to reduce administration and general expenses and increase staff costs by £997m.
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