Barclays 2014 Annual Report Download - page 344

342 I Barclays PLC Annual Report 2014 barclays.com/annualreport
Notes to the financial statements
Other disclosure matters
46 Barclays PLC (the Parent Company)
Other income/(expense)
Other income of £275m (2013: £137m expense) includes £250m (2013: nil) of income received from gross coupon payments on Barclays Bank
PLC issued Additional Tier 1 notes.
Non-Current Assets and Liabilities
Investment in subsidiary
The investment in subsidiary of £33,743m (2013: £30,059m) represents investments made into Barclays Bank PLC, including £4,326m (2013:
£2,063m) of Additional Tier 1 (AT1) securities. The increase of £3,684m during the year was due to a £2,263m increased holding in Barclays Bank
PLC issued securities and a further cash contribution of £1,421m.
Loans and advances to subsidiary and debt securities in issue
During the period, Barclays PLC issued £810ma equivalent of Fixed Rate Subordinated Notes (Tier 2) and £2,056ma equivalent of Fixed Rate Senior
Notes accounted for as subordinated liabilities and debt securities in issue respectively. The proceeds raised through these transactions were used,
respectively, to subscribe for £810m equivalent of Fixed Rate Subordinated Notes (Tier 2) issued by Barclays Bank PLC, and to make £2,056m
equivalent of Fixed Rate Senior Loans to Barclays Bank PLC, in each case with a ranking corresponding to the notes issued by Barclays PLC.
Derivative financial instrument
The derivative financial instrument of £313m (2013: £271m) held by the parent company represents Barclays PLC’s right to receive a Capital Note
for no additional consideration, in the event the Barclays PLC consolidated CRD IV Common Equity Tier 1 (CET 1) ratio (FSA October 2012
transitional statement) falls below 7% at which point the notes are automatically assigned by the holders to Barclays PLC.
Current Assets and Liabilities
Other assets
Other assets are £174m (2013: £812m). The movement principally relates to the payment by Barclays Bank PLC of a £739m receivable held by
Barclays PLC. The 2013 receivable arose as a result of shares issued by Barclays PLC to fund share awards for employee share schemes within
Barclays Bank PLC.
Shareholders’ equity
Ordinary shares, share premium, and reserves
Called up share capital and share premium of Barclays PLC (the Parent Company) was £20,809m (2013: £19,887m). Other equity instruments of
£4,326m (2013: £2,063m) comprised of Additional Tier 1 (AT1) securities issued during 2013 and 2014. For further details please refer to Note 31.
As at 31 December 2014, the distributable reserves of Barclays PLC (the Parent Company) were £7,387m (2013: £7,622m).
Note
a Including accrued interest and fee amortisation.