4.3.2 Barclays Bank Plc.
Presentation Of Financial
Statements
Barclays annual reports and accounts are composed of the
traditional consolidated profit and loss account, a statement of total
recognized gains and losses for the financial year, consolidated balance
sheets, consolidated statement of change in reserves, consolidated cash flow
statements, directors reports and notes to the accounts. The parents company's
account is also provided.
Measurement Practice
During the year 2000, accounts are prepared under the
historical cost convention as modified by the revaluations of certain
properties and investments. The bank uses the applicable accounting standards
of the Accounting Standards Board, the pronouncements of its Urgent Issues
Task Force (UITF), and the Statements of Recommended Accounting Practice (SORP)
issued by the British bankers association.
Goodwill arising from the acquisition of subsidiaries and
associated undertakings and joint ventures has been capitalized as an
intangible asset and amortized against profit over its estimated useful life
normally 20 years. Interest in associated undertakings and joint ventures are
included in the consolidated balance sheets at the group's share of the book
values of the net tangible assets of the undertakings concerned.
An associated undertaking is defined as generally one in which
the group owns more than 20 percent of shares, and also exercising significant
influence over the entity's operational and financial policies. A joint venture
is one where the group holds an interest on a long term basis and which is
jointly controlled by the group.
Depreciation of tangible fixed assets is provided on a
straight line basis at an annual rate of 2 % for freehold buildings and long
leasehold property, leasehold property, over the remaining life of the lease,
equipment installed in freehold and leasehold property, 10%, computers and
similar equipment, 20-33 % fixtures and fittings and 20% of other equipments.
Consolidation Accounting
The consolidation accounts have been prepared in compliance
with sections the Company's Act of 1985. The profit and loss accounts and the
balance sheets have been prepared in compliance with section 226 of schedule 4
in to the Company Act of 1985. The consolidated accounts included the accounts
of Barclays PLC and its subsidiaries up to the 31st of December. Interest in
subsidiaries and joint ventures are included in the consolidated balance sheets
at the group's share of book values of the net tangible assets.
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