RBS 2011 Annual Report Download - page 426

424 RBS Group 2011
1Presentation of accounts
The accounts are prepared on a going concern basis (see page 300 of the Report of the directors) and in accordance with International Financial
Reporting Standards issued by the International Accounting Standards Board (IASB) and interpretations issued by the IFRS Interpretations Committee
of the IASB as adopted by the European Union (EU) (together IFRS). The company's financial statements are prepared in accordance with IFRS as
issued by the IASB and are presented in accordance with the Companies Act 2006.
The company is incorporated in the UK and registered in Scotland. The accounts are prepared on the historical cost basis except that the following
assets and liabilities are stated at their fair value: derivative financial instruments, held-for-trading financial assets and financial liabilities, financial assets
and financial liabilities that are designated as at fair value through profit or loss, available-for-sale financial assets and investment property. Recognised
financial assets and financial liabilities in fair value hedges are adjusted for changes in fair value in respect of the risk that is hedged.
The accounting policies that are applicable to the company are included in the Group accounting polices which are set out on pages 314 to 326 of the
Group financial statements, except that it has no policy regarding ‘Basis of consolidation’ and that the company’s investment in its subsidiaries are
stated at cost less any impairment.
2Profit dealt with in the accounts of the company
As permitted by section 408(3) of the Companies Act 2006, the primary financial statements of the company do not include an income statement or
statement of comprehensive income. Condensed information is set out below.
Income statement 2011
£m
2010
£m
2009
£m
Dividends received from banking subsidiary 58 60 2,523
Dividends received from other subsidiaries 12 24 408
Gain on redemption of own debt — 53 238
Total income 70 137 3,169
Interest receivable from subsidiaries 1,019 1,042 997
Interest payable to subsidiaries (262) (263) (251)
Other net interest payable and operating expenses (291) (263) (62)
Write-down of investments in subsidiaries (570) (5,124) (5,139)
Operating loss before tax (34) (4,471) (1,286)
Tax (73) (83) (217)
Loss for the year (107) (4,554) (1,503)
Statement of comprehensive income 2011
£m
2010
£m
2009
£m
Loss for the year (107) (4,554) (1,503)
Other comprehensive income
Cash flow hedges —1 3
Total comprehensive loss for the year (107) (4,553) (1,500)
Total comprehensive loss is attributable to:
Preference shareholders —105 878
Paid-in equity holders —19 57
Ordinary and B shareholders (107) (4,677) (2,435)
(107) (4,553) (1,500)
The company did not pay an ordinary dividend in 2011, 2010 or 2009.
.
Parent company financial statement and notes continued