Barclays 2015 Annual Report Download - page 298

296 I Barclays PLC Annual Report 2015 home.barclays/annualreport
Notes to the financial statements
Financial instruments held at amortised cost
21 Finance leases continued
Finance lease liabilities
The Group leases items of property, plant and equipment on terms that meet the definition of finance leases. Finance lease liabilities are included
within Note 26 Accruals, deferred income and other liabilities.
As at 31 December 2015, the total future minimum payments under finance leases were nil (2014: £14m). The carrying amount of assets held under
finance leases was nil (2014: £31m).
22 Reverse repurchase and repurchase agreements including other similar lending and borrowing
Reverse repurchase agreements (and stock borrowing or similar transaction) are a form of secured lending whereby the Group provides a loan or
cash collateral in exchange for the transfer of collateral, generally in the form of marketable securities subject to an agreement to transfer the
securities back at a fixed price in the future. Repurchase agreements are where the Group obtains such loans or cash collateral, in exchange for the
transfer of collateral.
Accounting for reverse repurchase and repurchase agreements including other similar lending and borrowing
The Group purchases (a reverse repurchase agreement) or borrows securities subject to a commitment to resell or return them. The securities are
not included in the balance sheet as the Group does not acquire the risks and rewards of ownership. Consideration paid (or cash collateral
provided) is accounted for as a loan asset at amortised cost, unless it is designated at fair value through profit and loss.
The Group may also sell (a repurchase agreement) or lend securities subject to a commitment to repurchase or redeem them. The securities are
retained on the balance sheet as the Group retains substantially all the risks and rewards of ownership. Consideration received (or cash collateral
provided) is accounted for as a financial liability at amortised cost, unless it is designated at fair value through profit and loss.
2015
£m
2014
£m
Assets
Banks 8,954 39,528
Customers 19,233 92,225
Reverse repurchase agreements and other similar secured lendinga28,187 131,753
Liabilities
Banks 13,951 49,940
Customers 11,084 74,539
Repurchase agreements and other similar secured borrowinga25,035 124,479
Note
a During 2015, new reverse repurchase and repurchase agreements including other similar secured lending and borrowing in certain businesses have been designated at fair value to
better align to the way the business manages the portfolio’s risk and performance (see Notes 14 and 17 for further detail).