Barclays 2014 Annual Report Download - page 343

barclays.com/annualreport Barclays PLC Annual Report 2014 I 341
45 Non-current assets held for sale and associated liabilities
Accounting for non-current assets held for sale and associated liabilities
The Group applies IFRS 5 Non-current Assets Held for Sale and Discontinued Operations.
Non-current assets (or disposal groups) are classified as held for sale when their carrying amount is to be recovered principally through a sale
transaction rather than continuing use. In order to be classified as held for sale, the asset must be available for immediate sale in its present
condition subject only to terms that are usual and customary and the sale must be highly probable. Non-current assets (or disposal groups)
held for sale are measured at the lower of carrying amount and fair value less cost to sell.
Assets classified as held for sale
Spanish
Business Other Total Total
2014
£m
2014
£m
2014
£m
2013
£m
Available for sale financial instruments 10 152 162 –
Loans and advances to customers 13,177 1,766 14,943 –
Property, plant and equipment – 92 92 280
Deferred tax assets 291 – 291 –
Other assets 439 118 557 215
Total 13,917 2,128 16,045 495
Balance of impairment unallocated under IFRS 5 (471) – (471) –
Total agreed to consolidated balance sheet 13,446 2,128 15,574 495
Liabilities classified as held for sale
Spanish
Business Other Total Total
2014
£m
2014
£m
2014
£m
2013
£m
Deposits from banks (4,312) (1) (4,313) –
Customer accounts (6,612) (215) (6,827) –
Repurchase agreements and other similar secured borrowing (77) – (77) –
Other liabilities (1,839) (59) (1,898) –
Total (12,840) (275) (13,115) –
Sale of the Spanish business
The disposal group includes all assets and liabilities of Barclays Bank S.A.U. and its subsidiaries. These were disposed of as part of the
rationalisation of the Non-Core segment of the Group, announced in the Strategy Update on 8 May 2014.
The sale, initially announced to the market on 31 August 2014, was completed on 2 January 2015. A write down to fair value less costs to sell of
£734m is recognised on the disposal group, of which £263m was allocated against the carrying amount of individual assets within the scope of
measurement requirements of IFRS 5 and £471m has been allocated to the disposal group as a whole.
A loss of £446m has been recognised in the income statement within (loss)/profit on disposal of subsidiaries, associates and joint ventures. This
reflects the net impact of the write down of assets in line with IFRS 5 of £734m and other transaction related costs of £27m, partially offset by the
gain on related hedging instruments of £315m. Accumulated currency translation reserve losses of £100m will be recognised in the income
statement on completion of the sale.
Sale of Barclaycard Loan Portfolio
Other assets includes £1.7bn relating to a customer loan book, intended for sale during the first half of 2015 as part of the strategy to wind down
the Non-Core segment of the Group.
No write down is recognised under IFRS 5 as the fair value less costs to sell is expected to exceed the current carrying value.
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