RBS 2011 Annual Report Download - page 345

RBS Group 2011 343
Amounts included in the consolidated income statement:
2011
£m
2010
£m
2009
£m
Gains on financial assets/liabilities designated as at fair value through profit or loss 1,761 279 1,441
Gains/(losses) on disposal or settlement of loans and receivables 59 267 (573)
Notes:
(1) Includes items in the course of collection from other banks of £1,470 million (2010 - £1,958 million; 2009 - £2,533 million).
(2) The change in fair value of loans and advances to customers designated as at fair value through profit or loss attributable to changes in credit risk was a £31 million charge for the year and
cumulatively a credit of £71 million (2010 - £20 million charge, cumulative £82 million credit; 2009 - £157 million credit, cumulative £140 million credit).
(3) Includes items in the course of transmission to other banks of £506 million (2010 - £577 million; 2009 - £770 million).
(4) The carrying amount of other customer accounts designated as at fair value through profit or loss is £166 million lower (2010 - £233 million lower; 2009 - £101 million lower) than the principal amount.
No amounts have been recognised in profit or loss for changes in credit risk associated with these liabilities as the changes are immaterial, measured as the change in fair value from movements in
the period in the credit risk premium payable. The amounts include investment contracts with a carrying value of £38 million (2010 - £41 million; 2009 - £5,170 million).
(5) Comprises bonds and medium term notes of £129,780 million (2010 - £154,282 million; 2009 - £164,900 million) and certificates of deposit and other commercial paper of £32,841 million (2010 -
£64,090 million; 2009 - £102,668 million).
(6) During 2009, the Group reclassified financial assets from the held-for-trading category into the loans and receivables category, and during 2008 from the held-for-trading and available-for-sale
categories into the loans and receivables category and from the held-for-trading category into the available-for-sale category (see below).
Reclassification of financial instruments
The Group has 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 tables below show the carrying value, fair value and the effect on
profit or loss of reclassifications undertaken by the Group in 2008 and
2009. There were no reclassifications in 2010 or 2011.
Amount recognised in
income statement
Carrying
value
Fair
value Income
Impairment
releases/
(losses)
Amount
that would
have been
recognised had
reclassification
not occurred
(Increase)/
reduction in
profit or loss
as result of
reclassification
2011 £m £m £m £m £m £m
Reclassified from HFT to LAR
Loans 4,128 3,305 156 18 296 122
Debt securities 2,645 1,930 32 (7) (284) (309)
6,773 5,235 188 11 12 (187)
Reclassified from HFT to AFS (1)
Debt securities 4,176 4,176 (84) (61) (20) 125
Equity securities — — — — 1 1
4,176 4,176 (84) (61) (19) 126
Reclassified from AFS to LAR (2)
Debt securities 248 229 (11) (13) (24) —
11,197 9,640 93 (63) (31) (61)