Barclays 2014 Annual Report Download - page 341

barclays.com/annualreport Barclays PLC Annual Report 2014 I 339
43 Financial risks, liquidity and capital management
To improve transparency and ease of reference, by concentrating related information in one place, and to reduce duplication, disclosures required
under IFRS relating to financial risks and capital resources have been included within the Risk management and governance section as follows:
Q Credit risk, on pages 142 to 173;
Q Market risk, on pages 174 to 183;
Q Capital resources, on pages 184 to 190; and
Q Liquidity risk, on pages 191 to 208.
44 Transition Notes – Changes in accounting policies, comparability and other adjustments
Amendments to IAS 32 Financial Instruments (Offsetting Financial Assets and Financial Liabilities)
In December 2011, the IASB issued amendments to IAS 32 Financial Instruments that provide clarifications on the application of the offsetting
rules and the circumstances in which netting is permitted, in particular what constitutes a currently legally enforceable right of set-off and the
circumstances in which gross settlement systems may be considered equivalent to net settlement.
These amendments do not have any impact on the income statement, statement of comprehensive income and the statement of change in
equity. The impacts on the balance sheet and the cash flow statement are highlighted below.
Impact of IAS 32 Financial Instruments: Presentation (revised) on the balance sheet as at 31 December 2014
The adoption of the IAS 32 amendments resulted in a change of £53.6bn in the balance sheet. This movement is due to the following balance
sheet lines:
Impact of IAS 32 (revised) on consolidated balance sheet
As at 31 December 2014
Pre IAS 32
(revised)
£m
IAS 32
(revised)
impact
£m
Published
£m
Assets
Derivative financial instruments 389,352 50,557 439,909
Loans and advances to banks 42,035 76 42,111
Loans and advances to customers 424,828 2,939 427,767
Total assets 1,304,334 53,572 1,357,906
Liabilities
Deposits from banks 58,405 (15) 58,390
Customer accounts 423,641 4,063 427,704
Derivative financial instruments 389,796 49,524 439,320
Total liabilities 1,238,376 53,572 1,291,948
Movement between the published and restated balance sheet as at 31 December 2012 and 31 December 2013
The adoption of IAS 32 (revised) resulted in total assets and liabilities increasing by £31bn and £24bn for 2013 and 2012 respectively. This was due
to the gross up of financial assets and financial liabilities which were previously offset as shown in the table below:
Consolidated balance sheet – movement between published and restated
2013 2012
As at 31 December Published
£m
IAS 32
(revised)
impact
£m
Restated
£m
Published
£m
IAS 32
(revised)
impact
£m
Restated
£m
Assets
Derivative financial instruments 324,335 25,965 350,300 469,156 15,984 485,140
Loans and advances to banks 37,853 1,569 39,422 40,462 1,337 41,799
Loans and advances to customers 430,410 3,827 434,237 423,906 6,695 430,601
Total assets 1,312,267 31,361 1,343,628 1,488,335 24,016 1,512,351
Liabilities
Deposits from banks 54,834 781 55,615 77,012 333 77,345
Customer accounts 427,902 4,096 431,998 385,411 5,417 390,828
Derivative financial instruments 320,634 26,484 347,118 462,721 18,266 480,987
Total liabilities 1,248,318 31,361 1,279,679 1,428,349 24,016 1,452,365
The Strategic Report Governance Risk review Financial review Financial statements Shareholder information