RBS 2005 Annual Report Download - page 183

section
03
Financial
statements
181
Notes on the accounts
Annual Report and Accounts 2005
UK law prescribes that only reserves of the company are taken into account for the purpose of making distributions and the permissible
applications of the share premium account. The merger reserve arose on the acquisition of NatWest under UK GAAP accounting.
The Group optimises capital efficiency by maintaining reserves in subsidiaries, including regulated entities. Certain preference shares
and subordinated debt are also included within regulatory capital. The remittance of reserves to the parent or the redemption of shares
or subordinated capital by regulated entities may be subject to maintaining the capital resources required by the relevant regulator.
At 31 December 2005, 680,966 (2004 – 707,247) ordinary shares of 25p each of the company were held by the 1992 Employee
Share Trust and 91,951 (2004 – 63,098) ordinary shares of 25p each were held by the 2001 Employee Share Trust in respect of
options under the executive option scheme and awards under the medium term performance plan.
32 Leases
Minimum amounts receivable and payable under non-cancellable leases Group
Year in which receipt or payment will occur
After 1 year
Within 1 but within After 5
year 5 years years Total
2005 £m £m £m £m
Finance lease assets:
Amounts receivable 1,297 4,733 11,604 17,634
Present value adjustment (462) (1,857) (3,628) (5,947)
Other movements (26) (136) (231) (393)
Present value amounts receivable 809 2,740 7,745 11,294
Operating lease assets:
Amounts receivable 954 2,757 2,241 5,952
Operating lease obligations:
Amounts payable:
Premises 310 1,103 1,700 3,113
Equipment 10 11 — 21
320 1,114 1,700 3,134
2004
Finance lease assets:
Amounts receivable 1,382 4,110 10,901 16,393
Present value adjustment (515) (2,127) (4,362) (7,004)
Other movements (50) (170) (446) (666)
Present value amounts receivable 817 1,813 6,093 8,723
Operating lease assets:
Amounts receivable 833 1,895 2,493 5,221
Operating lease obligations:
Amounts payable:
Premises 316 1,114 2,246 3,676
Equipment 12 18 — 30
328 1,132 2,246 3,706