RBS 2005 Annual Report Download - page 211

section
03
Financial
statements
209
Notes on the accounts
Annual Report and Accounts 2005
(a) At 31 December 2005, the amounts outstanding in relation to transactions, arrangements and agreements entered into by
authorised institutions in the Group, as defined by UK Law, were £149,537 in respect of loans to six persons who were
directors of the company (or persons connected with them) at any time during the financial period and £2,055 to one person
who was an officer of the company at any time during the financial period.
(b) For the purposes of IAS 24 ‘Related Party Disclosures’, key management comprise directors of the company and members of
the Group Executive Management Committee. The captions in the Group’s primary financial statements include the following
amounts attributable, in aggregate, to key management:
43 Transactions with directors, officers and others
2005 2004
£000 £000
Loans and advances to customers 3,090 2,497
Customer accounts 12,604 8,021
Key management have banking relationships with Group entities which are entered into in the normal course of business.
Key management had no reportable transactions or balances with the company except for dividends.
(a) Group companies provide development and other types of capital support to businesses in their roles as providers of finance.
These investments are made in the normal course of business and on arm’s-length terms. In some instances, the investment
may extend to ownership or control over 20% or more of the voting rights of the investee company. However, these investments
are not considered to give rise to transactions of a materiality requiring disclosure under IAS 24.
(b) The Group recharges The Royal Bank of Scotland Group Pension Fund with the cost of administration services incurred by it.
The amounts involved are not material to the Group.
(c) In accordance with IAS 24, transactions or balances between Group entities that have been eliminated on consolidation are not
reported.
(d) The captions in the primary financial statements of the parent company include amounts attributable to subsidiaries. These
amounts have been disclosed in aggregate in the relevant notes to the financial statements.
44 Related parties