RBS 2005 Annual Report Download - page 222

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Notes on the accounts
Notes on the accounts continued
Balance sheet at 1 January 2005 – Company
IFRS prospective adjustments
IFRS Fair IFRS
31 December Debt/ Other Hedging & value Total 1 January
2004 equity IAS 32/39 measurement option adjustments 2005
£m £m £m £m £m £m £m
Assets
Loans and advances to banks 4,106 3,959 91 — — 4,050 8,156
Loans and advances to customers 305 153 95 — — 248 553
Investment in Group undertakings 21,900 (4,004) — — — (4,004) 17,896
Derivatives at fair value — — 101 4 — 105 105
Prepayments, accrued income and other assets 318 — (287) (17) — (304) 14
Total assets 26,629 108 — (13) — 95 26,724
Liabilities
Deposits by banks 174 ————— 174
Debt securities in issue 1,608 — 6 — — 6 1,614
Derivatives at fair value — — 96 — — 96 96
Accruals, deferred income and other liabilities 301 (31) (146) — (45) (222) 79
Subordinated liabilities 5,935 3,219 44 — 45 3,308 9,243
Shareholders’ funds 18,611 (3,080) — (13) — (3,093) 15,518
Total liabilities 26,629 108 — (13) — 95 26,724
Reconciliation of shareholders’ funds Group Company
£m £m
UK GAAP shareholders’ funds at 31 December 2004 31,865 32,277
Standards applicable to all periods:
Valuation of subsidiaries — (14,970)
Proposed dividend 1,308 1,308
Goodwill and other intangibles 865 —
Software development costs 551 —
Leasing (319) —
Share-based payments (20) —
Other (159) (4)
Tax effect on adjustments (77) —
Deferred tax (109) —
Shareholders’ funds under IFRS at 31 December 2004 33,905 18,611
Standards applicable from 1 January 2005:
Non-equity shares reclassified to debt (3,192) (3,192)
Revenue recognition (932) —
Derecognition (170) —
Securities 229 —
Investments in Group undertakings adjusted to historic cost — 108
Other (53) (14)
Tax effect on adjustments 235 5
Shareholders’ funds under IFRS at 1 January 2005 30,022 15,518
Equity – minority interests 951 —
Equity under IFRS at 1 January 2005 30,973 15,518
Group Company
Fair value on Carrying value Fair value on Carrying value
implementation of IAS 39 under UK GAAP implementation of IAS 39 under UK GAAP
As at 1 January 2005 £m £m £m £m
Financial assets
– designated as at fair value through profit or loss 2,579 2,728 — —
– Available-for-sale 40,161 39,718 — —
Financial liabilities
– designated as at fair value through profit or loss 9,976 10,071 — —
45 Transition to IFRS (continued)