RBS 2009 Annual Report Download - page 277

Financial statements
Notes on the accounts
275RBS Group Annual Report and Accounts 2009
2009
Reduction in
31 December 2009 After reclassification Amount profit or loss
that would as result of
Carrying Fair Impairment have been reclassi-
value value Income losses recognised fication
£m £m £m £m £m £m
Reclassified from HFT to LAR
Loans
Leveraged finance 2,574 2,257 109 (902) 482 1,275
Corporate and other loans 5,302 4,114 99 (361) (321) (59)
7,876 6,371 208 (1,263) 161 1,216
Debt securities
CDO 21 21 2 — 2 —
RMBS 1,532 1,168 (115) — (25) 90
CMBS 826 596 (44) — 24 68
CLOs 647 536 (43) (16) 39 98
Other ABS 1,145 1,070 (13) — — 13
Other 886 882 34 — 254 220
5,057 4,273 (179) (16) 294 489
Total 12,933 10,644 29 (1,279) 455 1,705
Reclassified from HFT to AFS (1)
Debt securities
CDO 1,170 1,170 35 (226) 40 231
RMBS 3,042 3,042 335 (84) 460 209
CMBS 63 63 (2) — 11 13
CLOs 2,676 2,676 57 — 704 647
Other ABS 508 508 20 — 44 24
Other 142 142 (3) (118) 34 155
7,601 7,601 442 (428) 1,293 1,279
Equity securities 28 28 (1) — — 1
7,629 7,629 441 (428) 1,293 1,280
Reclassified from AFS to LAR: (2)
Debt securities 869 745 21 — 21 —
Total 21,431 19,018 491 (1,707) 1,769 2,985
Notes:
(1) The amount taken to AFS reserves was £1,067 million.
(2) The amount that would have been taken to AFS reserves if reclassification had not occured is £(73) million.
Reclassification of financial instruments
The Group reclassified financial assets from the held-for-trading (HFT)
and available-for-sale (AFS) categories into the loans and receivables
(LAR) category (as permitted by paragraph 50D of IAS 39 as amended)
and from the held-for-trading category into the available-for-sale
category (as permitted by paragraph 50B of IAS 39 as amended).
The turbulence in the financial markets during the second half of 2008
was regarded by management as rare circumstances in the context of
paragraph 50B of IAS 39 as amended.
The table below shows the carrying value and fair value and the effect
on profit or loss of reclassification undertaken by the Group in 2008 and
2009.