RBS 2012 Annual Report Download - page 393

RBS GROUP 2012
391
Amounts included in the consolidated income statement:
2012
£m
2011
£m
2010
£m
(Losses)/gains on financial assets/liabilities designated as at fair value through profit or loss (2,612)1,761 279
(Losses)/gains on disposal or settlement of loans and receivables (76)59 267
Notes:
(1) Includes items in the course of collection from other banks of £1,531 million (2011 - £1,470 million; 2010 - £1,958 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 £22 million credit for the year and
cumulatively a credit of £44 million (2011 - £31 million charge, cumulative £71 million credit; 2010 - £20 million charge, cumulative £82 million credit).
(3) Includes items in the course of transmission to other banks of £521 million (2011 - £506 million; 2010 - £577 million).
(4) The carrying amount of other customer accounts designated as at fair value through profit or loss is £305 million (2011 - £166 million; 2010 - £233 million) higher 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 nil (2011 - £38 million; 2010 - £41 million).
(5) Comprises bonds and medium term notes of £88,723 million (2011 - £129,780 million; 2010 - £154,282 million) and certificates of deposit and other commercial paper of £5,869 million (2011 -
£32,841 million; 2010 - £64,090 million).
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, 2011 or 2012.
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 a result of
reclassification
2012 £m £m £m £m £m £m
Reclassified from HFT to LAR
Loans 2,892 2,546 42 15 517 460
Debt securities 1,671 1,333 (120) (6)251 377
4,563 3,879 (78) 9 768 837
Reclassified from HFT to AFS (1)
Debt securities 1,548 1,548 (158) (20)25 203
Reclassified from AFS to LAR (2)
Debt securities 167 90 7 — 7 —
6,278 5,517 (229) (11)800 1,040
For the notes to this table refer to page 392.