RBS 2005 Annual Report Download - page 151

section
03
Financial
statements
149
Notes on the accounts
Annual Report and Accounts 2005
Notes on the accounts
Introduction
IAS 32 ‘Financial Instruments: Disclosure and Presentation’, IAS 39 ‘Financial Instruments: Recognition and Measurement’ and IFRS 4
‘Insurance Contracts’ were implemented by the Group on 1 January 2005 and applied prospectively from that date and, as permitted
by IFRS, without restating comparatives. Consequently, in the notes on the accounts affected by these standards, comparative data
for 2004 in accordance with previous GAAP have been presented.
1 Income from trading activities Group
2005 2004
£m £m
Foreign exchange(1) 683 616
Securities
– equities(2) 39 36
– debt(3) 1,023 811
Interest rate derivatives(4) 598 525
2,343 1,988
Notes:
(1) Includes spot and forward foreign exchange contracts and currency swaps, futures and options and related hedges and funding.
(2) Includes equities, equity derivatives, commodity contracts and related hedges and funding.
(3) Includes debt securities and related hedges and funding.
(4) Includes interest rate swaps, forward rate agreements, interest rate options, interest rate futures and credit derivatives and related hedges and funding.
2 Operating expenses Group
2005 2004
£m £m
Administrative expenses
Staff costs
Wages, salaries and other staff costs 5,084 4,421
Social security costs 354 295
Share-based compensation 44 36
Pension costs (see note 3)
– defined benefit schemes 462 397
– defined contribution schemes 48 39
5,992 5,188
Premises and equipment 1,313 1,177
Other 2,816 2,323
10,121 8,688
Depreciation and amortisation
Property plant and equipment (see note 18) 1,326 1,155
Intangible assets (see note 17) 499 519
11,946 10,362
The average number of persons employed by the Group during the year, excluding temporary staff, was 144,900 (2004 – 133,300).