RBS 2012 Annual Report Download - page 481

RBS GROUP 2012
479
1 Presentation of accounts
The accounts are prepared on a going concern basis (see the Report of the directors, page 347) 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 derivative
financial instruments are stated at fair value. 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 360 to 371 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.
2 Profit 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 2012
£m
2011
£m
2010
£m
Dividends received from banking subsidiary 58 58 60
Dividends received from other subsidiaries 1,978 12 24
Gain on redemption of own debt — — 53
Profit on disposal of investment in subsidiaries 157 — —
2,193 70 137
Interest receivable from subsidiaries 1,097 1,019 1,042
Interest payable to subsidiaries (378) (262) (263)
Other net interest payable, non-interest income and operating expenses (247) (291) (263)
Write-down of investments in subsidiaries (1,785) (570) (5,124)
Impairment of loans to Group entities (1,409) — —
Operating loss before tax (529) (34) (4,471)
Tax (155) (73) (83)
Loss for the year (684) (107) (4,554)
Statement of comprehensive income 2012
£m
2011
£m
2010
£m
Loss for the year (684) (107) (4,554)
Other comprehensive income
Cash flow hedges — — 1
Total comprehensive loss for the year (684) (107) (4,553)
Total comprehensive loss is attributable to:
Preference shareholders 273 — 105
Paid-in equity holders 15 — 19
Ordinary and B shareholders (972) (107) (4,677)
(684) (107) (4,553)
The company did not pay an ordinary dividend in 2012, 2011 or 2010.