RBS 2007 Annual Report Download - page 214

Financial statements
RBS Group • Annual Report and Accounts 2007
212
Notes on the accounts continued
2007 2006
£000 £000
Loans and advances to customers 2,023 2,188
Customer accounts 13,309 18,575
Key management have banking relationships with Group entities which are entered into in the normal course of business and on
substantially the same terms, including interest rates and security, as for comparable transactions with other persons of a similar
standing or, where applicable, with other employees. These transactions did not involve more than the normal risk of repayment or
present other unfavourable features.
Key management had no reportable transactions or balances with the company except for dividends.
(a) At 31 December 2007, the amounts outstanding in relation
to transactions, arrangements and agreements entered into
by authorised institutions in the Group, as defined in UK
legislation, were £527,021 in respect of loans to 15
persons who were directors of the company (or persons
connected with them) 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:
41 Transactions with directors, officers and others
(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.
43 Post balance sheet events
There have been no significant events between the year end
and the date of approval of these accounts which would
require a change to or disclosure in the accounts.
42 Related parties