RBS 2009 Annual Report Download - page 53

51RBS Group Annual Report and Accounts 2009
Business review
Pro forma results
Pro forma results have been prepared that include only those business
units of ABN AMRO that will be retained by RBS. The financial review
and divisional performance in the Business review include the pro forma
results. The basis of preparation of the pro forma results is detailed on
page 113.
Given the significant write-down of goodwill and other intangible assets
in 2008, and in order to provide a basis for comparison of underlying
performance, these write-downs and other one-off items are shown
separately in the pro forma income statement.
Statutory results
RFS Holdings is jointly owned by the consortium members. It is
controlled by the company and is therefore fully consolidated in its
financial statements. Consequently, the statutory results of the Group
include the results of ABN AMRO. The interests of Fortis, and its
successor the State of the Netherlands, and Santander in RFS Holdings
are included in minority interests.
Restatements
Divisional results for 2008 have been restated to reflect the Group’s new
organisational structure that includes a Non-Core division comprising
individual assets, portfolios and lines of business that the Group intends
to run off or dispose. The Non-Core division is reported separately from
the divisions which form the Core Group. In addition, separate reporting
of Business Services (formerly Group Manufacturing) and Centre results
has changed and, with the exception of certain items of a one off
nature, costs incurred are now allocated to the customer-facing
divisions and included in the measurement of the returns which they
generate. The changes do not affect the Group’s results. Comparatives
have been restated accordingly.
IAS 1 (Revised 2007) ‘Presentation of Financial Statements’ has required
the Group to present a third balance sheet (31 December 2007) as a
result of the restatement of the Group’s income statement following the
implementation of IFRS 2 (see below). A fourth balance sheet
(31 December 2006) has not been presented as there is no material
impact on that period.
The pro forma and statutory results for 2008 have been restated for the
amendment to IFRS 2 ‘Share-based Payment’. This has resulted in an
increase in staff costs amounting to £169 million for 2008 with no
material effect on earlier periods.
Glossary
A glossary of terms is detailed on pages 383 to 387.