RBS 2011 Annual Report Download - page 346

344 RBS Group 2011
10 Financial instruments - classification continued
Amount recognised in
income statement
Carrying
value
Fair
value Income
Impairment
(losses)/
releases
Amount
that would
have been
recognised had
reclassification
not occurred
Reduction in
profit or loss
as result of
reclassification
2010 £m £m £m £m £m £m
Reclassified from HFT to LAR
Loans 5,378 4,428 234 (146) 491 403
Debt securities 3,530 3,121 48 (17) 424 393
8,908 7,549 282 (163) 915 796
Reclassified from HFT to AFS (1)
Debt securities 6,446 6,446 441 53 765 271
Equity securities 1 1 29 — 38 9
6,447 6,447 470 53 803 280
Reclassified from AFS to LAR (2)
Debt securities 422 380 (31) (50) (81) —
15,777 14,376 721 (160) 1,637 1,076
2009
Reclassified from HFT to LAR
Loans 7,876 6,371 208 (1,263) 161 1,216
Debt securities 5,057 4,273 (179) (16) 294 489
12,933 10,644 29
(1,279) 455 1,705
Reclassified from HFT to AFS (1)
Debt securities 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 —
21,431 19,018 491
(1,707) 1,769 2,985
Notes:
(1) The amount taken to AFS reserves was £152 million (2010 - £326 million; 2009 - £1,067 million).
(2) The amount that would have been taken to AFS reserves if reclassification had not occurred is £24 million (2010 - £98 million; 2009 - £(73) million).
The following table provides information for reclassifications made in 2009.
2009 2008
2009 - on reclassification 31 December 2009 After reclassification
Carrying
value
Effective
interest
rate
Expected
cash flows
Carrying
value
Fair
value
Losses
up to the
date of
reclassification Income
Impairment
losses
Amount
that would
have been
recognised had
reclassification
not occurred
Reduction in
profit or loss
as result of
reclassification
Losses
recognised in
the income
statement
in prior
period
£m % £m £m £m £m £m £m £m £m £m
Reclassified from HFT to LAR
Loans 1,740 5.9 2,640 887 924 (103) (44) (251) (256) 39 (62)
Debt securities 255 5.5 349 190 188 (33) — — (2) (2) (39)
1,995 2,989 1,077 1,112 (136) (44) (251) (258) 37 (101)
Notes on the consolidated accounts continued