IFRS Transition Report-Part 3

Barclays PLC
11 May 2005

     SPECIAL PURPOSE AUDIT REPORT OF PRICEWATERHOUSECOOPERS LLP TO BARCLAYS PLC
    ('THE COMPANY') ON ITS INTERNATIONAL FINANCIAL REPORTING STANDARDS ('IFRS')
                               FINANCIAL INFORMATION

    We have audited the accompanying consolidated IFRS balance sheets of
    Barclays PLC and its subsidiaries ('the Group') as at 1st January 2004 and
    31st December 2004, the related consolidated IFRS income statement for the
    year ended 31st December 2004, the 1st January 2005 balance sheet and
    transition adjustment relating to the adoption of IAS 32, IAS 39 and IFRS 4,
    set out on pages 7, 8 and 9 and the associated IFRS 1 reconciliations set
    out on pages on 61 to 79 prepared in accordance with the basis of
    preparation and the provisional accounting policies set out on pages 40 to
    59 (hereinafter referred to as 'the IFRS financial information').

    In addition to the above noted opening and year end balance sheets, full
    year income statement and associated IFRS reconciliations, included with the
    financial information set out on pages 7, 8, 9 and 61 to 79 are the
    half-year balance sheet, half-year income statements and associated IFRS
    reconciliations. We have not audited the half-year balance sheet, half-year
    income statements and associated IFRS reconciliations and these are not
    covered by this opinion and do not form part of the above defined IFRS
    financial information.

    The IFRS financial information has been prepared by the Group as part of its
    transition to IFRS and as described on pages 40 to 42 to establish the
    financial position, and results of operations of the Group to provide the
    comparative financial information expected to be included in the first
    complete set of consolidated IFRS financial statements of the Group for the
    year ended 31st December 2005.

    Respective responsibilities of Directors and PricewaterhouseCoopers LLP

    The Directors of the Company are responsible for the preparation of the
    consolidated IFRS financial information which has been prepared as part of
    the Group's transition to IFRS. Our responsibilities, as independent
    auditors, are established in the United Kingdom by the Auditing Practices
    Board, our profession's ethical guidance and the terms of our engagement.
    Under the terms of engagement we are required to report to you our opinion
    as to whether the IFRS financial information has been prepared, in all
    material respects, in accordance with the basis of preparation and
    provisional accounting policies set out on pages 40 to 59.

    This report, including the opinion, has been prepared for, and only for, the
    Company for the purposes of assisting with the Group's transition to IFRS
    and for no other purpose. To the fullest extent permitted by law, we do not,
    in giving this opinion, accept or assume responsibility for any other
    purpose or to any other person to whom this report is shown or into whose
    hands it may come save where expressly agreed by our prior consent in
    writing.

    We read the other information contained in this Transition Report and
    consider its implications for our report if we became aware of any apparent
    misstatements or material inconsistencies with the above defined IFRS
    financial information.

    Basis of audit opinion

    We conducted our audit in accordance with Auditing Standards issued by the
    UK Auditing Practices Board. An audit includes examination, on a test basis,
    of evidence relevant to the amounts and disclosures in the IFRS financial
    information. It also includes an assessment of the significant estimates and
    judgements made by the directors in the preparation of the IFRS financial
    information, and of whether the accounting policies are appropriate to the
    Group's circumstances and adequately disclosed.



    We planned and performed our audit so as to obtain all the information and
    explanations which we considered necessary in order to provide us with
    sufficient evidence to give reasonable assurance that the IFRS financial
    information is free from material misstatement, whether caused by fraud or
    other irregularity or error. In forming our opinion we also evaluated the
    overall adequacy of the presentation of information in the IFRS financial
    information.

    Emphasis of matter

    Without qualifying our opinion, we draw your attention to the fact that the
    IFRS financial information may require adjustment before its inclusion as
    comparative information in the Group's first set of IFRS financial
    statements for the year ended 31st December 2005. This is because Standards
    currently in issue and adopted by the EU are subject to interpretation
    issued from time to time by the International Financial Reporting
    Interpretations Committee (IFRIC) and further Standards may be issued by the
    International Accounting Standards Board (IASB) that will be adopted for
    financial years beginning on or after 1st January 2005.

    Additionally, without qualifying our opinion, IFRS is currently being
    applied in the United Kingdom and in a large number of other countries
    simultaneously for the first time. Furthermore, due to a number of new and
    revised Standards included within the body of Standards that comprise IFRS,
    there is not yet a significant body of established practice on which to draw
    in forming opinions regarding interpretation and application. Accordingly,
    practice is continuing to evolve. At this preliminary stage, therefore, the
    full financial effect of reporting under IFRS as it will be applied and
    reported on in the Group's first IFRS financial statements for the year
    ended 31st December 2005 may be subject to change.

    Opinion

    In our opinion, the accompanying IFRS financial information comprising of
    the consolidated IFRS balance sheets as at 1st January 2004 and 31st
    December 2004, the related consolidated IFRS income statement for the year
    ended 31st December 2004, the 1st January 2005 balance sheet and transition
    adjustment relating to the adoption of IAS 32, IAS 39 and IFRS 4, set out on
    pages 7, 8 and 9 and the associated IFRS 1 reconciliations set out on pages
    on 61 to 79, have been prepared, in all material respects, in accordance
    with the basis of preparation and the provisional accounting polices set out
    on pages 40 to 59, which describes how IFRS have been applied under IFRS 1,
    including the assumptions made by the directors of the Company about the
    standards and interpretations expected to be effective, and the policies
    expected to be adopted, when they prepare the first complete set of IFRS
    financial statements of the Group for the year ended 31st December 2005.


    PricewaterhouseCoopers LLP
    Chartered Accountants
    London
    10th May 2005


                                    BARCLAYS PLC
    Basis of preparation

    First Time Adoption of International Financial Reporting Standards (IFRS)

    The Group will adopt the requirements of International Financial Reporting
    Standards and International Accounting Standards (collectively, IFRS) for
    the first time for the purpose of preparing financial statements for the
    year ending 31st December 2005. The standards applied will be those issued
    by the International Accounting Standards Board and endorsed (or where there
    is a reasonable expectation of endorsement) by the European Union (EU) as at
    31st December 2005. In all respects, this is also expected to be in
    accordance with IFRS, including the interpretations issued by the
    International Financial Reporting Interpretations Committee (IFRIC) as
    applicable to Barclays.

    With the exception of the fair value option discussed below, the financial
    information in this document has been prepared on the basis of the Group's
    expectation of the standards that will be applicable as at 31st December
    2005.

    Further standards and interpretations may be issued that could be applicable
    for financial years beginning on or after 1st January 2005 or that are
    applicable to later accounting periods but with the option for companies to
    adopt for earlier periods. The Group's first annual financial statements
    prepared under IFRS may, therefore, be prepared in accordance with different
    accounting policies to those used in the preparation of the financial
    information in this document. In addition, IFRS is currently being applied
    in the European Union and other countries for the first time and contains
    many new and revised standards. Therefore practice on which to draw in
    applying the standards may develop. At this preliminary stage, before the
    Group's first annual financial statements prepared under IFRS are completed,
    it should be noted that the financial information in this document could be
    subject to change.

    In accordance with the transitional provisions set out in IFRS 1,
    'First-time Adoption of International Financial Reporting Standards' and
    other relevant standards, the Group has applied IFRS expected to be in force
    as at 31st December 2005 in its financial reporting with effect from 1st
    January 2004, with the exception of the standards relating to financial
    instruments and insurance contracts which were applied with effect from 1st
    January 2005, as described on page 41. Therefore the impacts of adopting IAS
    32, IAS 39 and IFRS 4 are not included in the 2004 comparatives in
    accordance with IFRS 1. Previously, the Group followed UK accounting
    standards issued by the UK Accounting Standards Board and the pronouncements
    of its Urgent Issues Task Force, relevant Statements of Recommended Practice
    and the Companies Act, 1985 (collectively, UK GAAP).

    At present, the EU-endorsed version of IAS 39 'Financial Instruments:
    Recognition and Measurement' does not permit non-trading financial
    liabilities to be designated as 'at fair value through profit or loss'.
    However, it is expected that proposed amendments to IAS 39 will result in
    the EU endorsing a revised version of the standard that would permit such
    designation in certain circumstances ('the fair value option'). It is
    anticipated that the relevant transitional arrangements would permit
    designation as at 1st January 2005 for companies adopting IFRS from that
    date. Should this option be available, the Group would consider making use
    of the proposals where appropriate. The main area where the option could be
    applied is to designate certain issued structured notes containing embedded
    derivatives as being measured at fair value through profit or loss. This
    would result in an increase estimated to be around £70m in opening
    shareholders' equity as at 1st January 2005, in comparison to the financial
    information included in this document. This increase would reflect the fact
    that observable profit arising on structured notes issued before 2005 would
    have been recognised in prior periods under IFRS, if the whole instruments
    had been measured on a fair value basis, rather than through bifurcating and
    measuring the embedded derivatives at fair value.

    The Group has used the provisions of IFRS 1 in arriving at appropriate
    opening balances for the purposes of these financial statements, as follows:

    Goodwill

    The Group has not applied IFRS 3, 'Business Combinations' retrospectively to
    business combinations prior to the date of transition. The carrying amount
    of goodwill in the UK GAAP balance sheet as at 31st December 2003 has
    accordingly been brought forward without adjustment.

    Property, plant and equipment

    The Group has adopted the carrying values of all items of property, plant
    and equipment on the date of transition under UK GAAP as their deemed cost,
    rather than either reverting to historical cost or carrying out a valuation
    at the date of transition as permitted by IFRS 1.

    Cumulative foreign currency difference

    The Group has brought forward a nil opening balance on the cumulative
    foreign currency translation adjustment arising from the re-translation of
    foreign operations, which is shown as a separate item in shareholders'
    equity at the date of transition in accordance with IAS 21 'The Effects of
    Changes in Foreign Exchange Rates'.

    Employee benefits

    For defined benefit pension schemes and other post retirement benefits, the
    Group has recognised all cumulative actuarial gains and losses at the date
    of transition.

    Derecognition of financial assets and liabilities

    The Group has elected not to re-recognise financial assets and liabilities
    derecognised before 1st January 2004.

    First time application of IFRS relating to financial instruments and
    insurance contracts

    In addition to the options described above, IFRS 1 also includes specific
    transitional provisions for International Accounting Standard 32, 'Financial
    Instruments: Disclosure and Presentation', International Accounting Standard
    39, 'Financial Instruments: Recognition and Measurement' and International
    Financial Reporting Standard 4, 'Insurance Contracts'. The Group has decided
    to take advantage of these provisions and therefore has not applied these
    standards to the 2004 comparatives. The impact of these standards is
    reflected through further adjustments to shareholders' equity as at 1st
    January 2005. In the 2004 comparatives, financial instruments and insurance
    contracts are included using the measurement bases and the disclosure
    requirements of UK GAAP relating to financial instruments and insurance
    contracts.

    Effects of the transition to IFRS

    A description of the differences between UK GAAP and IFRS accounting
    policies is set out on pages 80 to 91. Reconciliations of balance sheets
    prepared under UK GAAP and IFRS at 1st January 2004, 30th June 2004 and 31st
    December 2004 are included on pages 65 to 79. Reconciliations of the profit
    and loss account prepared in accordance with UK GAAP and prepared in
    accordance with IFRS for the periods ending 30th June 2004 and 31st December
    2004 are included on pages 61 to 64. In addition, a reconciliation of the
    amount of shareholders' equity at 1st January 2005, before and after the
    application of IAS 32, IAS 39 and IFRS 4, and an explanation of the effects
    of their application on the opening 2005 balance sheet, is presented on
    pages 65 to 70.

    Provisional accounting policies expected to be applied from 1st January 2005
    and used in the preparation of this document

    1.  Consolidation

    Subsidiaries

    The consolidated financial statements combine the financial statements of
    Barclays PLC and all its subsidiaries, including certain special purpose
    entities where appropriate, made up to 31st December. Entities qualify as
    subsidiaries where the Group has the power to exercise control over the
    financial and operating policies of the entity. In particular, entities
    qualify as subsidiaries where the Group has the power to govern the
    financial and operating policies of the entity, generally accompanying a
    shareholding of more than one half of the voting rights. The existence and
    effect of potential voting rights that are currently exercisable or
    convertible are considered in assessing whether the Group controls another
    entity.

    Subsidiaries are consolidated from the date on which control is transferred
    to the Group and cease to be consolidated from the date that control ceases.

    The acquisition method of accounting is used to account for the purchase of
    subsidiaries. The cost of an acquisition is measured at the fair value of
    the assets given, equity instruments issued and liabilities incurred or
    assumed, plus any costs directly related to the acquisition. The excess of
    the cost of an acquisition over the Group's share of the fair value of the
    identifiable net assets acquired is recorded as goodwill. See 11 on page 53
    for the accounting policy for goodwill. Intra-group transactions and
    balances are eliminated on consolidation and consistent accounting policies
    are used throughout the Group for the purposes of the consolidation.

    Associates and joint ventures

    An associate is an entity in which the Group has significant influence, but
    not control over, the operating and financial management policy decisions.
    This is generally demonstrated by the Group holding in excess of 20%, but no
    more than 50%, of the voting rights.

    A joint venture is a venture in which the Group has a contractual
    arrangement with one or more parties to undertake activities typically,
    though not necessarily, through entities which are subject to joint control.

    The Group's investment in associates and joint ventures is initially
    recorded at cost and increased (or decreased) each year by the Group's share
    of the post acquisition net income (or loss), or other movements reflected
    directly in the equity of the associated or jointly controlled entity.
    Goodwill arising on the acquisition of an associate or joint venture is
    included in the cost of the investment (net of any accumulated impairment
    loss). When the Group's share of losses in an associate or joint venture
    equals or exceeds the recorded interest, including any other unsecured
    receivables, the Group does not recognise further losses, unless it has
    incurred obligations or made payments on behalf of the entity.

    The Group's share of the results of associates and joint ventures after tax
    is based on financial statements made up to a date not earlier than three
    months before the balance sheet date, adjusted to conform with the
    accounting polices of the Group. Unrealised gains on transactions are
    eliminated to the extent of the Group's interest in the investee. Unrealised
    losses are also eliminated unless the transaction provides evidence of
    impairment in the asset transferred.

    2.  Foreign currency translation

    The consolidated financial statements are presented in sterling, which is
    the functional currency of the parent company.

    Items included in the financial statements of each of the Group's entities
    are measured using their functional currency, being the currency of the
    primary economic environment in which the entity operates.

    Foreign currency transactions are translated into the appropriate functional
    currency using the exchange rates prevailing at the dates of the
    transactions. Balances denominated in foreign currencies are retranslated at
    the rate prevailing at the period end. Foreign exchange gains and losses
    resulting from the retranslation and settlement of these items are
    recognised in the income statement except for qualifying cash flow hedges or
    hedges of net investments. See 9 on page 50 for the policies on hedge
    accounting.

    Non-monetary assets that are measured at fair value are translated using the
    exchange rate at the date that the fair value was determined. Exchange
    differences on equities and similar non-monetary items held at fair value
    through profit or loss, are reported as part of the fair value gain or loss.
    Translation differences on equities classified as available-for-sale
    financial assets and non-monetary items, are included directly in equity.

    For the purposes of translation into the reporting currency, assets,
    liabilities and equity of foreign operations are translated at the closing
    rate, and items of income and expense are translated into sterling at the
    rates prevailing on the dates of the transactions, or average rates of
    exchange where these approximate to actual rates.

    The exchange differences arising on the translation of a foreign operation
    are included in cumulative translation reserves within shareholders' equity
    and included in the profit or loss on disposal or partial disposal of the
    operation.

    Goodwill and fair value adjustments arising on the acquisition of foreign
    subsidiaries are maintained in foreign currency, translated at the closing
    rate and are included in hedges of net investments where appropriate.

    3.  Interest, fees and commissions and other income

    Interest

    Interest income is recognised in interest receivable in the income statement
    for all interest-bearing financial instruments classified as held to
    maturity, available for sale or other loans and advances using the effective
    interest method.

    The effective interest method is a method of calculating the amortised cost
    of a financial asset or liability (or group of assets and liabilities) and
    of allocating the interest income or interest expense over the relevant
    period. The effective interest rate is the rate that exactly discounts the
    expected future cash payments or receipts through the expected life of the
    financial instrument, or when appropriate, a shorter period, to the net
    carrying amount of the instrument. The application of the method has the
    effect of recognising income (and expense) receivable (or payable) on the
    instrument evenly in proportion to the amount outstanding over the period to
    maturity or repayment.

    In calculating effective interest, the Group estimates cash flows (using
    projections based on its experience of customers' behaviour) considering all
    contractual terms of the financial instrument but excluding future credit
    losses. Fees, including those for early redemption, are included in the
    calculation to the extent that they can be measured and are considered to be
    an integral part of the effective interest rate. Cash flows arising from the
    direct and incremental costs of issuing financial instruments are also taken
    into account in the calculation. Where it is not possible to otherwise
    estimate reliably the cash flows or the expected life of a financial
    instrument, the Group has reference to the payments or receipts specified in
    the contract, and the full contractual term.

    Fees and commissions

    Unless included in the effective interest calculation, fees and commissions
    are recognised on an accruals basis when the service has been provided. Fees
    and commissions not integral to effective interest arising from negotiating,
    or participating in the negotiation of a transaction with a third party,
    such as the acquisition of loans, shares or other securities or the purchase
    or sale of businesses, are recognised on completion of the underlying
    transaction. Portfolio and other management advisory and service fees are
    recognised based on the applicable service contracts. Asset management fees
    related to investment funds are recognised over the period the service is
    provided. The same principle is applied to the recognition of income from
    wealth management, financial planning and custody services that are
    continuously provided over an extended period of time.

    Commitment fees, together with related direct costs, for loan facilities
    where draw down is probable are deferred and recognised as an adjustment to
    the effective interest on the loan once drawn. Commitment fees in relation
    to facilities where draw down is not probable are recognised over the term
    of the commitment.

    Mortgage indemnity premiums

    Mortgage indemnity premiums received are included in the effective interest
    rate on the associated loan.

    Insurance premiums

    Insurance premiums are recognised in the period earned.

    Net trading income

    Income arises from the margins which are achieved through market making and
    customer business and from changes in market value caused by movements in
    interest and exchange rates, equity prices and other market variables.
    Trading positions are held at fair value and the resulting gains and losses
    are included in the income statement, together with interest and dividends
    arising from long and short positions.

    Lending related fees and commissions payable and incentives

    Fees and commissions payable to introducers in respect of obtaining lending
    business, where these are direct and incremental costs related to the issue
    of a financial instrument, are included in interest income as part of the
    effective interest rate.

    4.  Financial assets and liabilities

    The Group classifies its financial assets in the following categories:
    financial assets at fair value through profit or loss; loans and
    receivables; held to maturity investments and available for sale financial
    assets. Management determines the classification of financial assets and
    liabilities at initial recognition.

    Financial assets at fair value through profit or loss

    A financial asset classified in this category is acquired primarily for the
    purpose of selling in the short term (held for trading) or if so designated
    by management (designated under the fair value option). Derivatives are fair
    valued through profit or loss unless they are designated as cash flow hedges
    or hedges of net investments. The assets may be either held for trading or
    otherwise designated as held at fair value on inception. The assets are
    recognised initially at fair value and transaction costs are taken directly
    to the income statement. Gains and losses arising from changes in fair value
    are included directly in the income statement. The assets are derecognised
    when the rights to receive cash flows have expired or the Group has
    transferred substantially all the risks and rewards of ownership.

    Purchases and sales of investments are recognised on trade date, being the
    date on which the Group commits to purchase or sell the asset.

    Loans and receivables

    Loans and receivables are non-derivative financial assets with fixed or
    determinable payments that are not quoted in an active market and which are
    not classified as available for sale. They arise when the Group provides
    money or services directly to a customer with no intention of trading the
    loan. Loans and receivables are initially recognised at fair value including
    direct and incremental transaction costs. They are subsequently valued at
    amortised cost, using the effective interest method (see 3 on page 44). They
    are derecognised when the rights to receive cash flows have expired or the
    Group has transferred substantially all the risks and rewards of ownership.

    Held to maturity

    Held to maturity investments are non-derivative financial assets with fixed
    or determinable payments that the Group's management has the intention and
    ability to hold to maturity. They are initially recognised at fair value
    including direct and incremental transaction costs. They are subsequently
    valued at amortised cost, using the effective interest method (see 3 on page
    44). They are derecognised when the rights to receive cash flows have
    expired or the Group has transferred substantially all the risks and rewards
    of ownership.

    Available for sale

    Available for sale investments are non-derivative financial investments that
    are designated as available for sale and are not categorised into any of the
    other categories described above. They are initially recognised at fair
    value including direct and incremental transaction costs. They are
    subsequently held at fair value. Gains and losses arising from changes in
    fair value are included as a separate component of equity until sale when
    the cumulative gain or loss is transferred to the income statement. Interest
    determined using the effective interest method (see 3 on page 44),
    impairment losses and translation differences on monetary items are
    recognised in the income statement. The investments are derecognised when
    the rights to receive cash flows have expired or the Group has transferred
    substantially all the risks and rewards of ownership.

    Where the classification of an asset requires it to be stated at fair value,
    this is determined by reference to the quoted bid value in an active market
    wherever possible. Where no such active market exists for the particular
    asset, the Group uses a valuation technique to arrive at the fair value,
    including the use of prices obtained in recent arms' length transactions,
    discounted cash flow analysis, option pricing models and other valuation
    techniques commonly used by market participants.

    Financial liabilities

    Financial liabilities are measured at amortised cost, except for trading
    liabilities, which are held at fair value through profit or loss. As noted
    on page 40, the Group will consider applying the fair value option to
    certain financial liabilities when this is permitted.

    5.  Impairment of financial assets

    The Group assesses at each balance sheet date whether there is objective
    evidence that a financial asset or a portfolio of financial assets is
    impaired. A financial asset or portfolio of financial assets is impaired and
    impairment losses are incurred if, and only if, there is objective evidence
    of impairment as a result of one or more loss events that occurred after the
    initial recognition of the asset and prior to the balance sheet date ('a
    loss event') and that loss event or events has had an impact on the
    estimated future cash flows of the financial asset or the portfolio that can
    be reliably estimated. Objective evidence that a financial asset or a
    portfolio is impaired includes observable data that comes to the attention
    of the Group about the following loss events:

    a)      significant financial difficulty of the issuer or obligor;
    b)      a breach of contract, such as a default or delinquency in interest
            or principal payments;
    c)      the lender, for economic or legal reasons relating to the
            borrower's financial difficulty, granting to the borrower a 
            concession that the lender would not otherwise consider;
    d)      it becomes probable that the borrower will enter bankruptcy or other
            financial reorganisation;
    e)      the disappearance of an active market for that financial asset
            because of financial difficulties; or
    f)      observable data indicating that there is a measurable decrease in
            the estimated future cash flows from a portfolio of financial assets 
            since the initial recognition of those assets, although the decrease 
            cannot yet be identified with the individual financial assets in the 
            portfolio, including:

    (i) adverse changes in the payment status of borrowers in the portfolio;
    (ii) national or local economic conditions that correlate with defaults on
    the assets in the portfolio.

    The Group first assesses whether objective evidence of impairment exists
    individually for financial assets that are individually significant, and
    individually or collectively for financial assets that are not individually
    significant. If the Group determines that no objective evidence of
    impairment exists for an individually assessed financial asset, whether
    significant or not, it includes the asset in a group of financial assets
    with similar credit risk characteristics and collectively assesses them for
    impairment. Assets that are individually assessed for impairment and for
    which an impairment loss is or continues to be recognised are not included
    in a collective assessment of impairment.

    For loans and receivables and assets held to maturity, the amount of
    impairment loss is measured as the difference between the asset's carrying
    amount and the present value of estimated future cash flows discounted at
    the asset's original effective interest rate. The amount of the loss is
    recognised using an allowance account and the amount of the loss is included
    in the income statement.

    The calculation of the present value of the estimated future cash flows of a
    collateralised financial asset reflect the cash flows that may result from
    foreclosure costs for obtaining and selling the collateral, whether or not
    foreclosure is probable.

    For the purposes of a collective evaluation of impairment, financial assets
    are grouped on the basis of similar risk characteristics, taking into
    account asset type, industry, geographical location, collateral type,
    past-due status and other relevant factors. These characteristics are
    relevant to the estimation of future cash flows for groups of such assets by
    being indicative of the counterparty's ability to pay all amounts due
    according to the contractual terms of the assets being evaluated.

    Future cash flows in a group of financial assets that are collectively
    evaluated for impairment are estimated on the basis of the contractual cash
    flows of the assets in the group and historical loss experience for assets
    with credit risk characteristics similar to those in the group. Historical
    loss experience is adjusted on the basis of current observable data to
    reflect the effects of current conditions that did not affect the period on
    which the historical loss experience is based and to remove the effects of
    conditions in the historical period that do not currently exist.

    The methodology and assumptions used for estimating future cash flows are
    reviewed regularly to reduce any differences between loss estimates and
    actual loss experience.

    Following impairment, interest income is recognised using the original
    effective rate of interest which was used to discount the future cash flows
    for the purpose of measuring the impairment loss.

    When a loan is uncollectable, it is written off against the related
    provision for loan impairment. Such loans are written off after all the
    necessary procedures have been completed and the amount of the loss has been
    determined. Subsequent recoveries of amounts previously written off decrease
    the amount of the provision for loan impairment in the income statement.

    If, in a subsequent period, the amount of the impairment loss decreases and
    the decrease can be related objectively to an event occurring after the
    impairment was recognised, the previously recognised impairment loss is
    reversed by adjusting the allowance account. The amount of the reversal is
    recognised in the income statement.

    Assets acquired in exchange for loans and advances in order to achieve an
    orderly realisation are accounted for as a disposal of the loan and an
    acquisition of an asset. Where control is obtained over an entity as a
    result of the transaction, the entity is consolidated. Any further
    impairment of the assets or business acquired is treated as an impairment of
    the relevant asset or business and not as an impairment of the original
    instrument.

    In the case of equity instruments classified as available for sale, a
    significant or prolonged decline in the fair value of the security below its
    cost is considered in determining whether impairment exists. Where such
    evidence exists, the cumulative net loss that has been previously recognised
    directly in equity is removed from equity and recognised in the income
    statement. In the case of debt instruments classified as available for sale,
    impairment is assessed based on the same criteria as all other financial
    assets. Reversals of impairment of debt securities are recognised in the
    income statement. Reversals of impairment of equity shares are not
    recognised in the income statement, increases in the fair value of equity
    shares after impairment are recognised directly in equity.

    6.  Sale and repurchase agreements (including stock borrowing and lending)

    Investment and other securities may be lent or sold subject to a commitment
    to repurchase them (a 'repo'). Such securities are retained on the balance
    sheet when substantially all the risks and rewards of ownership remain with
    the Group, and the counterparty liability is included separately on the
    balance sheet as appropriate.

    Similarly, where the Group borrows or purchases securities subject to a
    commitment to resell them (a 'reverse repo') but does not acquire the risks
    and rewards of ownership, the transactions are treated as collateralised
    loans, and the securities are not included in the balance sheet.

    The difference between sale and repurchase price is accrued over the life of
    the agreements using the effective interest method. Securities lent to
    counterparties are also retained in the financial statements.

    Securities borrowed are not recognised in the financial statements, unless
    these are sold to third parties, at which point the obligation to repurchase
    the securities is recorded as a trading liability at fair value and any
    subsequent gain or loss included in Net trading income.

    7.  Securitisation transactions

    Certain Group undertakings have issued debt securities or have entered into
    funding arrangements with lenders in order to finance specific loans and
    advances to customers.

    All such financial instruments continue to be held on the Group balance
    sheet, and a liability recognised for the proceeds of the funding
    transaction, unless:

    a) a fully proportional share of all or specifically identified cash flows
    are transferred to the lender, in which case, that proportion of the asset
    is derecognised;
    b) substantially all the risks and returns associated with the financial
    instruments have been transferred, in which case, the assets are
    derecognised in full; or
    c) if a significant portion, but not all, of the risks and rewards have been
    transferred, the asset is derecognised entirely if the transferee has the
    practical ability to sell the financial asset or recognised only to the
    extent of the Group's continuing involvement in the asset.

    Transactions undertaken prior to 1st January 2004 that were accounted for on
    the basis of linked presentation under UK GAAP have been represented by
    separate recognition of the gross assets and the related funding from that
    date.

    8.  Collateral and netting

    The Group enters into master netting agreements with counterparties whenever
    possible and, when appropriate, obtains collateral. Master agreements
    provide that, if an event of default occurs, all outstanding transactions
    with the counterparty will fall due and all amounts outstanding will be
    settled on a net basis.

    Collateral

    The Group obtains collateral in respect of customer liabilities where this
    is considered appropriate. The collateral normally takes the form of a lien
    over the customer's assets and gives the Group a claim on these assets for
    both existing and future liabilities.

    The Group also receives collateral in the form of cash or securities in
    respect of other credit instruments, such as stock borrowing contracts, and
    derivative contracts in order to reduce credit risk. Collateral received in
    the form of securities is not recorded on the balance sheet. Collateral
    received in the form of cash is recorded on the balance sheet with a
    corresponding liability or asset. These items are assigned to deposits
    received from banks or other counterparties in the case of cash collateral
    received, and to loans and advances to banks or customers in the case of
    cash collateral paid away. Any interest payable or receivable arising is
    recorded as interest payable or interest income respectively.

    Netting

    Financial assets and liabilities are offset and the net amount reported in
    the balance sheet if, and only if, there is a currently enforceable legal
    right to set off the recognised amounts and there is an intention to settle
    on a net basis, or to realise an asset and settle the liability
    simultaneously. This is not generally the case with master agreements, and
    the related assets and liabilities are presented gross in the balance sheet.

    9.  Derivatives and hedge accounting

    Derivatives are used to hedge interest rate, exchange rate, commodity, and
    equity exposures and exposures to certain indices such as house price
    indices and retail price indices related to non-trading positions. In
    addition, the use of derivatives and their sale to customers as risk
    management products is an integral part of the Group's trading activities.
    Derivatives entered into for hedging purposes and for trading purposes
    include foreign exchange, interest rate, credit, equity and commodity
    derivatives mainly in the form of swaps, forwards, options and combinations
    of these instrument types.

    Derivatives

    Derivatives are measured initially at fair value and subsequently remeasured
    to fair value. Fair values are obtained from quoted prices prevailing in
    active markets, including recent market transactions, and valuation
    techniques, including discounted cash flow models and options pricing models
    as appropriate. All derivatives are included in assets when their fair value
    is positive, and liabilities when their fair value is negative, unless there
    is the legal ability and intention to settle net.

    Profits or losses are only recognised on initial recognition of derivatives
    when there are observable current market transactions or valuation
    techniques are based on observable market inputs.

    Embedded derivatives

    Some hybrid contracts contain both a derivative and a non-derivative
    component. In such cases, the derivative component is termed an embedded
    derivative. Where the economic characteristics and risks of embedded
    derivatives are not closely related to those of the host contract, and the
    hybrid contract itself is not carried at fair value, the embedded derivative
    is bifurcated and reported at fair value with gains and losses being
    recognised in the income statement.

    Hedge accounting

    Where derivatives are held for risk management purposes, and when
    transactions meet the criteria specified in IAS 39, the Group applies fair
    value hedge accounting, cash flow hedge accounting, or hedging of a net
    investment in a foreign operation as appropriate to the risks being hedged.

    When a financial instrument is designated as a hedge, the Group formally
    documents the relationship between the hedging instrument and hedged item as
    well as its risk management objectives and its strategy for undertaking the
    various hedging transactions. The Group also documents its assessment, both
    at hedge inception and on an ongoing basis, of whether the derivatives that
    are used in hedging transactions are highly effective in offsetting changes
    in fair values or cash flows of hedged items.

    The Group discontinues hedge accounting when:

    a)      it is determined that a derivative is not, or has ceased to be,
            highly effective as a hedge;
    b)      the derivative expires, or is sold, terminated, or exercised;
    c)      the hedged item matures or is sold or repaid; or
    d)      a forecast transaction is no longer deemed highly probable.

    In certain circumstances, the Group may decide to cease hedge accounting
    even though the hedge relationship continues to be highly effective by no
    longer designating the financial instrument as a hedge.

    To the extent that the changes in the fair value of the hedging derivative
    differ from changes in the fair value of the hedged risk in the hedged item;
    or the cumulative change in the fair value of the hedging derivative differs
    from the cumulative change in the fair value of expected future cash flows
    of the hedged item, the hedge is deemed ineffective. The amount of
    ineffectiveness, (taking into account the timing of the expected cash flows,
    where relevant) provided it is not so great as to disqualify the entire
    hedge for hedge accounting, is recorded in the income statement.

    Fair value hedge accounting

    Changes in fair value of derivatives that qualify and are designated as fair
    value hedges are recorded in the income statement, together with changes in
    the fair value of the hedged asset or liability that are attributable to the
    hedged risk.

    If the hedge no longer meets the criteria for hedge accounting, the fair
    value hedging adjustment cumulatively made to the carrying value of the
    hedged item is, for items carried at amortised cost, amortised over the
    period to maturity of the previously designated hedge relationship using the
    effective interest method. For available for sale items this fair value
    hedging adjustment remains in equity until the hedged item affects profit or
    loss.

    If the hedged item is sold or repaid, the unamortised fair value adjustment
    is recognised immediately in the income statement.

    Cash flow hedge accounting

    For qualifying cash flow hedges, the fair value gain or loss associated with
    the effective portion of the cash flow hedge is recognised initially
    directly in shareholders' equity, and recycled to the income statement in
    the periods when the hedged item will affect profit or loss. Any ineffective
    portion of the gain or loss on the hedging instrument is recognised in the
    income statement immediately.

    When a hedging instrument expires or is sold, or when a hedge no longer
    meets the criteria for hedge accounting, any cumulative gain or loss
    existing in equity at that time remains in equity and is recognised when the
    forecast transaction is ultimately recognised in the income statement. When
    a forecast transaction is no longer expected to occur, the cumulative gain
    or loss that was recognised in equity is immediately transferred to the
    income statement.

    Hedges of net investments

    Hedges of net investments in foreign operations, including monetary items
    that are accounted for as part of the net investment, are accounted for
    similarly to cash flow hedges; the effective portion of the gain or loss on
    the hedging instrument is recognised directly in equity and the ineffective
    portion is recognised immediately in the income statement. The cumulative
    gain or loss previously recognised in equity is recognised in the income
    statement on the disposal or partial disposal of the foreign operation.

    Hedges of net investments may include non-derivative liabilities as well as
    derivative financial instruments.

    Derivatives that do not qualify for hedge accounting

    Derivative contracts entered into as economic hedges that do not qualify for
    hedge accounting are held at fair value through profit or loss.

    Hedge accounting is not generally applied to credit derivatives that are
    purchased to reduce credit risk for large portfolios of originated loans but
    is used in specific circumstances where the hedge accounting requirements
    are met.

    10.  Property, plant and equipment

    Property and equipment is stated at cost less accumulated depreciation and
    provisions for impairment, if any. Additions and subsequent expenditures are
    capitalised only to the extent that they enhance the future economic
    benefits expected to be derived from the assets.

    Depreciation is provided on the depreciable amount of items of property and
    equipment on a straightline basis over their estimated useful lives. The
    depreciable amount is the gross carrying amount, less the estimated residual
    value at the end of its economic life.

    The Group generally uses the following annual rates in calculating
    depreciation:

    Freehold buildings and long-leasehold property                          2%
    (more than 50 years to run)
    Leasehold property                                      Over the remaining
    (less than 50 years to run)                             life of the leases
    Costs of adaptation of freehold and leasehold property*                10%
    Equipment installed in freehold and leasehold property*                10%
    Computers and similar equipment                                     20-33%
    Fixtures and fittings and other equipment                              20%

    *Where leasehold property has a remaining useful life of less than 10 years,
    costs of adaptation and installed equipment are depreciated over the
    remaining life of the lease.

    Depreciation rates, methods and the residual values underlying the
    calculation of depreciation of items of property, plant and equipment are
    kept under review to take account of any change in circumstances.

    When deciding on depreciation rates and methods, the principal factors that
    the Group takes into account are the expected rate of technological
    developments and expected market requirements for, and the expected pattern
    of usage of, the assets. When reviewing residual values, the Group estimates
    the amount that it would currently obtain for the disposal of the asset,
    after deducting the estimated cost of disposal if the asset were already of
    the age and condition expected at the end of its useful life.

    No depreciation is provided on freehold land, although, in common with all
    long-lived assets, it is subject to impairment testing, if deemed
    appropriate.

    11.  Intangible assets

    Goodwill

    Goodwill arises on the acquisition of subsidiary and associated entities and
    joint ventures, and represents the excess of the fair value of the purchase
    consideration and direct costs of making the acquisition, over the fair
    value of the Group's share of the assets acquired and the liabilities and
    contingent liabilities assumed on the date of the acquisition.

    For the purpose of calculating goodwill, fair values of acquired assets,
    liabilities and contingent liabilities are determined by reference to market
    values or by discounting expected future cash flows to present value. This
    discounting is either performed using market rates or by using risk-free
    rates and risk adjusted expected future cash flows.

    Goodwill is capitalised and reviewed annually for impairment, or more
    frequently when there are indications that impairment may have occurred.
    Goodwill is allocated to cash-generating units for the purpose of impairment
    testing. Goodwill on the acquisitions of associates and joint ventures is
    included in the amount of the investments. Gains and losses on the disposal
    of an entity include the carrying amount of the goodwill relating to the
    entity sold.

    Computer software

    Computer software is stated at cost, less amortisation and provisions for
    impairment, if any.

    The identifiable and directly associated external and internal costs of
    acquiring and developing software are capitalised where the software is
    controlled by the Group, and where it is probable that future economic
    benefits that exceed its cost will flow from its use over more than one
    year. Costs associated with maintaining software are recognised as an
    expense when incurred.

    Capitalised computer software is amortised over 3 to 5 years.

    12.  Impairment of property, plant and equipment and intangible assets

    At each balance sheet date, or more frequently where events or changes in
    circumstances dictate, property, plant and equipment and intangible assets,
    are assessed for indications of impairment. If indications are present,
    these assets are subject to an impairment review. Goodwill is subject to an
    impairment review as at the balance sheet date each year. The impairment
    review comprises a comparison of the carrying amount of the asset with its
    recoverable amount: the higher of the asset's or the cash-generating unit's
    net selling price and its value in use. Net selling price is calculated by
    reference to the amount at which the asset could be disposed of in a binding
    sale agreement in an arm's length transaction evidenced by an active market
    or recent transactions for similar assets. Value in use is calculated by
    discounting the expected future cash flows obtainable as a result of the
    asset's continued use, including those resulting from its ultimate disposal,
    at a market-based discount rate on a pre-tax basis.

    The carrying values of fixed assets and goodwill are written down by the
    amount of any impairment and this loss is recognised in the income statement
    in the period in which it occurs. A previously recognised impairment loss
    relating to a fixed asset may be reversed in part or in full when a change
    in circumstances leads to a change in the estimates used to determine the
    fixed asset's recoverable amount. The carrying amount of the fixed asset
    will only be increased up to the amount that it would have been had the
    original impairment not been recognised. Impairment losses on goodwill are
    not reversed. For the purpose of conducting impairment reviews,
    cash-generating units are the lowest level at which management monitors the
    return on investment on assets.

    13.  Financial guarantees

    Financial guarantees are given to banks, financial institutions and other
    bodies on behalf of customers to secure loans, overdrafts and other banking
    facilities ('facility guarantees'), and to other parties in connection with
    the performance of customers under obligations related to contracts, advance
    payments made by other parties, tenders, retentions and the payment of
    import duties.

    Financial guarantees are initially recognised in the financial statements at
    fair value on the date that the guarantee was given. Subsequent to initial
    recognition, the bank's liabilities under such guarantees are measured at
    the higher of the initial measurement, less amortisation calculated to
    recognise in the income statement the fee income earned over the period, and
    the best estimate of the expenditure required to settle any financial
    obligation arising as a result of the guarantees at the balance sheet date.

    Any increase in the liability relating to guarantees is taken to the income
    statement in Provisions for undrawn contractually committed facilities and
    guarantees. Any liability remaining is recognised in the income statement
    when the guarantee is discharged, cancelled or expires.

    This represents a change in accounting policy from 1st January 2004, from
    that applied under UK GAAP and results in financial guarantees being
    recognised and measured in accordance with the principles set out in the
    proposed amendments to IAS 39 on financial guarantees. This change in policy
    has had an immaterial impact on the 2004 income statement and earnings per
    share, and has reduced retained earnings by £34m as at 1st January 2004.

    14.  Issued debt and equity securities

    Issued financial instruments or their components are classified as
    liabilities where the substance of the contractual arrangement results in
    the Group having a present obligation to either deliver cash or another
    financial asset to the holder, to exchange financial instruments on terms
    that are potentially unfavourable or to satisfy the obligation otherwise
    than by the exchange of a fixed amount of cash or another financial asset
    for a fixed number of equity shares. Issued financial instruments, or their
    components, are classified as equity where they meet the definition of
    equity and confer on the holder a residual interest in the assets of the
    Group. The components of issued financial instruments that contain both
    liability and equity elements are accounted for separately with the equity
    component being assigned the residual amount after deducting from the
    instrument as a whole the amount separately determined as the fair value of
    the liability component.

    Financial liabilities are carried at amortised cost using the effective
    interest method (see 3 above). Derivatives embedded in financial liabilities
    are accounted for as set out in 9 above.

    Equity instruments, including share capital, are initially recognised at net
    proceeds, after deducting transaction costs and any related income tax.
    Dividend and other payments to equity holders are deducted from equity, net
    of any related income tax.

    15.  Share capital

    Share issue costs

    Incremental costs directly attributable to the issue of new shares or
    options or the acquisition of a business are shown in equity as a deduction,
    net of tax, from the proceeds.

    Dividends on ordinary shares

    Dividends on ordinary shares are recognised in equity in the period in which
    they are approved by the Barclays PLC (the Company) shareholders.

    Treasury shares

    Where the Company or any member of the Group purchases the Company's share
    capital, the consideration paid is deducted from shareholders' equity as
    treasury shares until they are cancelled. Where such shares are subsequently
    sold or reissued, any consideration received is included in shareholders'
    equity.

    16.  Insurance and investment contracts

    The Group has allocated its wealth management products into insurance
    contracts and investment contracts depending on the level of insurance risk
    in the products. The Group has applied IFRS 4, 'Insurance Contracts' to its
    insurance contracts. Financial assets and liabilities relating to investment
    contracts, and assets backing insurance contracts are classified and
    measured as appropriate under IAS 39, 'Financial Instruments: Recognition
    and Measurement'. IFRS 4 permits insurance contracts to be accounted for in
    accordance with UK GAAP accounting polices. However, from 1st January 2004
    the Group has chosen to change its accounting policy in relation to
    insurance contracts to use the Modified Statutory Solvency Basis rather than
    the Embedded Value basis to account for insurance polices in the UK. This
    change will result in insurance contracts and investment contracts being
    accounted for on a similar basis and represents the most appropriate
    accounting policy in the circumstances. This change in policy has reduced
    other operating income by £47m in 2004 and has reduced retained earnings by
    £592m as at 1st January 2004. The impact on earnings per share is
    immaterial. Overseas wealth management products have also been allocated
    between insurance contracts and investment contracts. Overseas insurance
    contract liabilities are measured on an actuarial basis in accordance with
    the requirements in the countries concerned and as permitted by IFRS 4.

    The significant policies comprising the Modified Statutory Solvency Basis
    are as follows:

    Claims

    Claims and surrenders are accounted for when notified. Maturities on the
    policy maturity date and regular withdrawals are accounted for when due.

    Long term business provision

    The long term business provision is determined by the appointed actuary
    following his investigation of the long term fund and is calculated annually
    on a statutory solvency basis to comply with UK and other regulatory
    requirements. The calculation uses a cash flow method for unit linked
    insurance policies for determining mortality and expense reserves. For
    conventional policies a gross premium valuation is used.

    Reinsurance

    Long-term insurance business is ceded to reinsurers under contracts to
    transfer part or all of one or more of the following risks: mortality,
    investment, persistency and expenses. Such contracts are accounted for as
    insurance contracts.

    17.  Leases

    Lessor

    Assets leased to customers under agreements which transfer substantially all
    the risks and rewards of ownership, with or without ultimate legal title,
    are classified as finance leases. When assets are held subject to a finance
    lease, the present value of the lease payments, discounted at the rate of
    interest implicit in the lease, is recognised as a receivable. The
    difference between the total payments receivable under the lease and the
    present value of the receivable is recognised as unearned finance income,
    which is allocated to accounting periods under the pre-tax net investment
    method to reflect a constant periodic rate of return.

    Assets leased to customers under agreements which do not transfer
    substantially all the risks and rewards of ownership are classified as
    operating leases. The leased assets are included within property, plant and
    equipment on the Group's balance sheet and depreciation is provided on the
    depreciable amount of these assets on a systematic basis over their
    estimated useful lives. Lease income is recognised on a straight-line basis
    over the period of the lease unless another systematic basis is more
    appropriate.

    Lessee

    Operating lease rentals payable are recognised as an expense in the income
    statement on a straight-line basis over the lease term unless another
    systematic basis is more appropriate.

    18.  Employee benefits

    The Group provides employees worldwide with post retirement benefits mainly
    in the form of pensions. The Group operates a number of pension schemes
    which may be funded or unfunded and of a defined contribution or defined
    benefit nature. In addition, the Group contributes, according to local law
    in the various countries in which it operates, to Governmental and other
    plans which have the characteristics of defined contribution plans.

    For defined benefit schemes, actuarial valuation of each of the scheme's
    obligations using the projected unit credit method and the fair valuation of
    each of the scheme's assets are performed annually using consistent
    assumptions. The difference between the fair value of the plan assets and
    the present value of the defined benefit obligation at the balance sheet
    date, together with adjustments for any unrecognised actuarial losses and
    past service cost, is recognised as a liability in the balance sheet. An
    asset, arising for example, as a result of past over funding or the
    performance of the plan investments, is recognised to the extent that it
    does not exceed the present value of future contribution holidays or refunds
    of contributions.

    Cumulative actuarial gains and losses in excess of the greater of 10% of the
    assets or 10% of the obligations of the plan are recognised in the income
    statement over the remaining average service lives of the employees of the
    related plan on a straight-line basis.

    For defined contribution schemes, the Group recognises contributions due in
    respect of the accounting period in the income statement. Any contributions
    unpaid at the balance sheet date are included as a liability.

    The Group also provides healthcare to certain retired employees, which are
    accrued as a liability in the financial statements over the period of
    employment, using a methodology similar to that for defined benefit pension
    plans.

    Short-term employee benefits, such as salaries, paid absences, and other
    benefits, are accounted for on an accruals basis over the period which
    employees have provided services in the year. Bonuses are recognised to the
    extent that the Group has a present obligation to its employees that can be
    measured reliably.

    All expenses related to employee benefits are recognised in the income
    statement in staff costs, which is included within operating expenses.

    19.  Share-based payments to employees

    The Group engages in equity settled share-based payment transactions in
    respect of services received from certain of its employees. The fair value
    of the services received is measured by reference to the fair value of the
    shares or share options granted on the date of the grant. The cost of the
    employee services received in respect of the shares or share options granted
    is recognised in the income statement over the period that the services are
    received, which is the vesting period. The fair value of the options granted
    is determined using option pricing models, which take into account the
    exercise price of the option, the current share price, the risk free
    interest rate, the expected volatility of the Barclays PLC share price over
    the life of the option and other relevant factors. Except for those which
    include terms related to market conditions, vesting conditions included in
    the terms of the grant are not taken into account in estimating fair value.
    Non-market vesting conditions are taken into account by adjusting the number
    of shares or share options included in the measurement of the cost of
    employee services so that ultimately, the amount recognised in the income
    statement reflects the number of vested shares or share options. Where
    vesting conditions are related to market conditions, the charges for the
    services received are recognised regardless of whether or not the market
    related vesting condition is met, provided that the non-market vesting
    conditions are met.

    20.  Provisions

    Provisions are recognised for present obligations arising as consequences of
    past events where it is more likely than not that a transfer of economic
    benefit will be necessary to settle the obligation, and it can be reliably
    estimated.

    When a leasehold property ceases to be used in the business, provision is
    made, where the unavoidable costs of the future obligations relating to the
    lease are expected to exceed anticipated rental income. The net costs are
    discounted using market rates of interest to reflect the long-term nature of
    the cash flows.

    Provision is made for the anticipated cost of restructuring, including
    redundancy costs, when an obligation exists. An obligation exists when the
    Group has a detailed formal plan for restructuring a business and has raised
    valid expectations in those affected by the restructuring by starting to
    implement the plan or announcing its main features. The provision raised is
    normally utilised within nine months.

    Contingent liabilities are possible obligations whose existence will be
    confirmed only by uncertain future events or present obligations where the
    transfer of economic benefit is uncertain or cannot be reliably measured.
    Contingent liabilities are not recognised but are disclosed unless they are
    remote.

    21.  Income taxes, including deferred income taxes

    Income tax payable on taxable profits ('current tax') is recognised as an
    expense in the period in which the profits arise. Income tax recoverable on
    tax allowable losses is recognised as an asset only to the extent that it is
    regarded as recoverable by offset against current or future taxable profits.

    Deferred income tax is provided in full, using the liability method, on
    temporary timing differences arising from the tax bases of assets and
    liabilities and their carrying amounts in the consolidated financial
    statements. Deferred income tax is determined using tax rates and
    legislation enacted or substantially enacted by the balance sheet date and
    are expected to apply when the deferred tax asset is realised or the
    deferred tax liability is settled.

    Deferred and current tax assets and liabilities are only offset when they
    arise in the same tax reporting group and where there is both the legal
    right and the intention to settle on a net basis or to realise the asset and
    settle the liability simultaneously.

    22.  Segment reporting

    Business segments are distinguishable components of the Group that provide
    products or services that are subject to risks and rewards that are
    different to those of other business segments. Geographical segments provide
    products or services within a particular economic environment that is
    subject to different risks and rewards that are different to those of
    components operating in other economic environments. Business segments are
    the primary reporting segments.

    23.  Cash and cash equivalents

    For the purposes of the cash flow statement, cash comprises cash on hand and
    demand deposits, and cash equivalents comprise highly liquid investments
    that are convertible into cash with an insignificant risk of changes in
    value with original maturities of less than 3 months.

    24.  Trust activities

    The Group commonly acts as trustees and in other fiduciary capacities that
    result in the holding or placing of assets on behalf of individuals, trusts,
    retirement benefit plans and other institutions. These assets and income
    arising thereon are excluded from the financial statements, as they are not
    assets of the Group.


                              DETAILED RECONCILIATIONS

    The pages that follow contain detailed reconciliations of UK GAAP to IFRS in
    accordance with IFRS 1. The reconciliations contain two columns for each
    period as well as the UK GAAP and IFRS results. The reclassify column
    includes re-classification and re-analysis of amounts from their UK GAAP
    profit and loss account and balance sheet lines to the appropriate IFRS
    income statement and balance sheet lines. The remeasure column sets out the
    effects of the recognition and measurement changes required by the
    transition to IFRS. The remeasure columns are further analysed into the type
    of adjustment.

    Differences between UK GAAP and IFRS on pages 80 to 91 provide more
    information on each type of adjustment and are referenced in the remeasure
    analysis.

                                                                           
    Income statements
    Full-year ended 31st December 2004                                     
    Half-year ended 31st December 2004                                     
    Half-year ended 30th June 2004                                         
    Remeasure analysis
    Full-year ended 31st December 2004                                     
    Half-year ended 31st December 2004                                     
    Half-year ended 30th June 2004                                         
    Balance sheets
    As at 1st January 2005 - assets                                        
    As at 31st December 2004 - assets                                      
    As at 30th June 2004 - assets                                          
    As at 1st January 2004 - assets                                        
    As at 1st January 2005 - liabilities                                   
    As at 31st December 2004 - liabilities                                 
    As at 30th June 2004 - liabilities                                     
    As at 1st January 2004 - liabilities                                   
    As at 1st January 2005 - shareholders' equity                          
    As at 31st December 2004 - shareholders' equity                        
    As at 30th June 2004 - shareholders' equity                            
    As at 1st January 2004 - shareholders' equity                          
    Remeasure analysis
    As at 1st January 2005 - assets                                        
    As at 1st January 2005 - liabilities                                   
    As at 1st January 2005 - shareholders' equity                          
    As at 31st December 2004 -assets                                       
    As at 31st December 2004 - liabilities                                 
    As at 31st December 2004 - shareholders' equity                        
    As at 30th June 2004 - assets                                          
    As at 30th June 2004 - liabilities                                     
    As at 30th June 2004 - shareholders' equity                            
    As at 1st January 2004 - assets                                        
    As at 1st January 2004 - liabilities                                   
    As at 1st January 2004 - shareholders' equity                          



                                    BARCLAYS PLC

    Income statement reconciliations for periods ending in 2004.

                            Full-year ended 31st December 2004

                        UK GAAP   Reclassify   Remeasure           IFRS
                            £m            £m          £m             £m
Interest income         13,665             -         215         13,880
Interest expense        (6,823)            -        (224)        (7,047)
                      --------      --------      ------        -------
Net interest             
income                   6,842             -          (9)         6,833
                      --------      --------      ------        -------
Fee and                  
commission
income                   5,672             -        (112)         5,560
Fee and                   
commission
expense                   (706)            -          44           (662)
                      --------      --------      ------        -------
Net fee and              
commission
income                   4,966             -         (68)         4,898
                      --------      --------      ------        -------
Dealing profits          1,493        (1,493)          -              -
Net trading                  
income                       -         1,493          (6)         1,487
Net investment               
income                       -           308         740          1,048
                      --------      --------      ------        -------
Principal                    -         1,801         734          2,535
transactions
Net premiums                 
from insurance
contracts                    -           211         831          1,042
                      --------      --------      ------        -------
Other operating            
income                     644          (519)        (15)           110
Total operating         
income                  13,945             -       1,473         15,418
                      --------      --------      ------        -------
Impairment loss         
on loans and
advances and
other credit
risk provisions         (1,091)           (2)          -         (1,093)
Provisions for              
contingent
liabilities and
commitments                 (2)            2           -              -
                      --------      --------      ------        -------
Net operating           
income                  12,852             -       1,473         14,325
                      --------      --------      ------        -------
Net claims and               
benefits on
insurance
contracts                    -             -      (1,310)        (1,310)
Operating                    
expenses                     -        (8,350)       (186)        (8,536)
Administrative          
expenses-staff
costs                   (4,998)        4,998           -              -
Administrative          
expenses-other          (2,758)        2,758           -              -
Depreciation and          
goodwill
amortisation              (594)          594           -              -
Share of results            
of associates
and
joint ventures              56           (10)         10             56
Exceptional                 
items                       45           (45)          -              -
Profit on                    
disposal of
associates and
joint ventures               -            45           -             45
                      --------      --------      ------        -------
Profit before            
tax                      4,603           (10)        (13)         4,580
                      --------      --------      ------        -------
Tax                     (1,289)           10           -         (1,279)
Dividends               (1,538)            -       1,538              -
                      --------      --------      ------        -------
Profit for the           
year                     1,776             -       1,525          3,301
                      --------      --------      ------        -------
Profit                      
attributable to
minority
interests                   46             -           1             47
Profit                  
attributable to
shareholders             1,730             -       1,524          3,254
                      --------      --------      ------        -------
                         1,776             -       1,525          3,301
                      --------      --------      ------        -------

                         Half-year ended 31st December 2004                     Half-year ended 30th June 2004
                  

                   UK GAAP     Reclassify     Remeasure      IFRS     UK GAAP     Reclassify    Remeasure      IFRS
                        £m            £m             £m        £m          £m             £m           £m        £m

Interest income      7,202             -            113     7,315       6,463              -          102     6,565
Interest expense    (3,701)            -           (114)   (3,815)     (3,122)             -         (110)   (3,232)
                   -------        ------          -----   -------    --------          -----      -------   -------
Net interest         
income               3,501             -             (1)    3,500       3,341              -           (8)    3,333
                   -------        ------          -----   -------    --------          -----      -------   -------
Fee and commission   
income               2,952             -            (65)    2,887       2,720              -          (47)    2,673
Fee and commission    
expense               (364)            -             35      (329)       (342)             -            9      (333)
                   -------        ------          -----   -------    --------          -----      -------   -------
Net fee and          
commission income    2,588             -            (30)    2,558       2,378              -          (38)    2,340
                   -------        ------          -----   -------    --------          -----      -------   -------
Dealing profits        687          (687)             -         -         806           (806)           -         -
Net trading income       -           687             (3)      684           -            806           (3)      803
Net investment           
income                   -           131            594       725           -            177          146       323
                   -------        ------          -----   -------    --------          -----      -------   -------
Principal                
transactions             -           818            591     1,409           -            983          143     1,126
                   -------        ------          -----   -------    --------          -----      -------   -------
Net premiums from        
insurance
contracts                -            84            422       506           -            127          409       536
Other operating        
income                 317          (215)           (38)       64         327           (304)          23        46
                   -------        ------          -----   -------    --------          -----      -------   -------
Total operating      
income               7,093             -            944     8,037       6,852              -          529     7,381
                   -------        ------          -----   -------    --------          -----      -------   -------
Impairment loss on    
loans and advances
and other credit
risk provisions       (502)           (2)             -      (504)       (589)             -            -      (589)
Provisions for          
contingent
liabilities and
commitments             (2)            2              -         -           -              -            -         -
                   -------        ------          -----   -------    --------          -----      -------   -------
Net operating        
income               6,589             -            944     7,533       6,263              -          529     6,792
                   -------        ------          -----   -------    --------          -----      -------   -------
Net claims and           
benefits on
insurance
contracts                -             -           (896)     (896)          -              -         (414)     (414)
Operating expenses       -        (4,439)          (123)   (4,562)          -         (3,911)         (63)   (3,974)
Administrative      
expenses-staff
costs               (2,601)        2,601              -         -      (2,397)         2,397           -          -
Administrative      
expenses-other      (1,532)        1,532              -         -      (1,226)         1,226           -          -
Depreciation and      
goodwill
amortisation          (306)          306              -         -        (288)           288           -          -
Share of results        
of associates and
joint ventures          42            (6)             6        42          14             (4)          4         14
Exceptional items        -             -              -         -          45            (45)          -          -
Profit on disposal       -             -              -         -           -             45           -         45
of associates and
joint ventures
                   -------        ------          -----   -------    --------          -----      -------   -------
Profit before tax    2,192            (6)           (69)    2,117       2,411             (4)         56      2,463
                   -------        ------          -----   -------    --------          -----      -------   -------
Tax                   (614)            6            (26)     (634)       (675)             4          26       (645)
Dividends           (1,010)            -          1,010         -        (528)             -         528          -
                   -------        ------          -----   -------    --------          -----      -------   -------
Profit for the         
year                   568             -            915     1,483       1,208              -         610      1,818
                   -------        ------          -----   -------    --------          -----      -------   -------
Profit                  
attributable to
minority interests      26             -              1        27          20              -           -         20
Profit                 
attributable to
shareholders           542             -            914     1,456       1,188              -         610      1,798
                   -------        ------          -----   -------    --------          -----      -------   -------
                       568             -            915     1,483       1,208              -         610      1,818
                   -------        ------          -----   -------    --------          -----      -------   -------


                                    BARCLAYS PLC

    Analysis of remeasure column in income statement reconciliation for
    full-year to 31st December 2004.

                                                     Full-year 31st December 2004

                   Consolidation        Life   Goodwill     Share    Pensions Intangible   Financial  Leasing Dividends
                                   assurance                based                 assets  guarantees
                                                         payments
Notes                        (a)          (b)       (d)        (e)        (f)        (g)          (h)      (i)      (j)

                             £m           £m        £m         £m         £m         £m           £m       £m       £m

Interest income             228            -         -          -          -          -           18      (31)       -
Interest expense           (219)           -         -          -          -          -            -       (5)       -
                         ------       ------      ----      -----      -----     ------       ------     ----   ------
Net interest                  
income                        9            -         -          -          -          -           18      (36)       -
                         ------       ------      ----      -----      -----     ------       ------     ----   ------
Fee and commission          
income                      (90)           -         -          -          -          -          (17)      (5)       -
Fee and commission           
expense                      44            -         -          -          -          -            -        -        -
                         ------       ------      ----      -----      -----     ------       ------     ----   ------
Net fee and                 
commission income           (46)           -         -          -          -          -          (17)      (5)       -
                         ------       ------      ----      -----      -----     ------       ------     ----   ------
Dealing profits               -            -         -          -          -          -            -        -        -
Net trading income           (6)           -         -          -          -          -            -        -        -
Net investment                
income                        4          717         -          -          -          -            -       21        -
                         ------       ------      ----      -----      -----     ------       ------     ----   ------
Principal                    
transactions                 (2)         717         -          -          -          -            -       21        -
                         ------       ------      ----      -----      -----     ------       ------     ----   ------
Net premiums from           
insurance
contracts                   151          680         -          -          -          -            -        -        -
Other operating              
income                       14          (47)        -          -          -          -            -       18        -
                         ------       ------      ----      -----      -----     ------       ------     ----   ------
Total operating             
income                      126        1,350         -          -          -          -            1       (2)       -
                         ------       ------      ----      -----      -----     ------       ------     ----   ------
Impairment loss on            
loans and advances
and other
credit risk
provisions                    -            -         -          -          -          -            -        -        -
Provisions for                
contingent
liabilities and
commitments                   -            -         -          -          -          -            -        -        -
                         ------       ------      ----      -----      -----     ------       ------     ----   ------
Net operating               
income                      126        1,350         -          -          -          -            1       (2)       -
                         ------       ------      ----      -----      -----     ------       ------     ----   ------
Net claims and              
benefits on
insurance
contracts                   (51)      (1,259)        -          -          -          -            -        -        -
Operating expenses          (74)        (142)      293        (49)      (174)       (31)           -       (9)       -
Administrative                
expenses-staff
costs                         -            -         -          -          -          -            -        -        -
Administrative                
expenses-other                -            -         -          -          -          -            -        -        -
Depreciation and              
goodwill
amortisation                  -            -         -          -          -          -            -        -        -
Share of results              
of associates and
joint ventures                -            -         7          -          -          -            -        -        -
Exceptional items             -            -         -          -          -          -            -        -        -
Profit on disposal            
of associates and
joint ventures                -            -         -          -          -          -            -        -        -
                         ------       ------      ----      -----      -----     ------       ------     ----   ------
Profit before tax             1          (51)      300        (49)      (174)       (31)           1      (11)       -
                         ------       ------      ----      -----      -----     ------       ------     ----   ------
Tax                           -          (64)        -          -         52          9            -        3        -
Dividends                     -            -         -          -          -          -            -        -    1,538
                         ------       ------      ----      -----      -----     ------       ------     ----   ------
Profit for the                
year                          1         (115)      300        (49)      (122)       (22)           1       (8)   1,538
                         ------       ------      ----      -----      -----     ------       ------     ----   ------
Profit                        
attributable to
minority interests            1            -         -          -          -          -            -        -        -
Profit                        
attributable to
shareholders                  -         (115)      300        (49)      (122)       (22)           1       (8)   1,538
                         ------       ------      ----      -----      -----     ------       ------     ----   ------
                              1         (115)      300        (49)      (122)       (22)           1       (8)   1,538
                         ------       ------      ----      -----      -----     ------       ------     ----   ------

                            Other      Total
                                   remeasure
Notes                          £m         £m

                               
Interest income                 -        215
Interest expense                -       (224)
                           ------    -------
Net interest income             -         (9)
                           ------    -------
Fee and commission income       -       (112)
Fee and commission expense      -         44
                           ------    -------
Net fee and commission          
income                          -        (68)
                           ------    -------
Dealing profits                 -          -
Net trading income              -         (6)
Net investment income          (2)       740
                           ------    -------
Principal transactions         (2)       734
                           ------    -------
Net premiums from insurance     
contracts                       -        831
Other operating income          -        (15)
                           ------    -------
Total operating income         (2)     1,473
                           ------    -------
Impairment loss on loans        
and advances and other
credit risk provisions          -          -
Provisions for contingent       
liabilities and commitments     -          -
                           ------    -------
Net operating income           (2)     1,473
                           ------    -------
Net claims and benefits on      
insurance contracts             -     (1,310)
Operating expenses              -       (186)
Administrative                  
expenses-staff costs            -          -
Administrative                  
expenses-other                  -          -
Depreciation and goodwill       
amortisation                    -          -
Share of results of             
associates and joint
ventures                        3         10
Exceptional items               -          -
Profit on disposal of           
associates and joint
ventures                        -          -
                           ------    -------
Profit before tax               1        (13)
                           ------    -------
Tax                             -          -
Dividends                       -      1,538
                           ------    -------
Profit for the year             1      1,525
                           ------    -------
Profit attributable to          
minority interests              -          1
Profit attributable to          
shareholders                    1      1,524
                           ------    -------
                                1      1,525
                           ------    -------



                                    BARCLAYS PLC

Analysis of remeasure column in income statement reconciliation for half-year to 31st December 2004.



                                                 Half-year ended 31st December 2004
                         --------------------------------------------------------------------------
                         Consoli   Life   Good   Share   Pensions    Intan     Finan  Leas     Divi
                          dation  Assur   will   based               gible      cial   ing    dends
                                   ance            pay              assets    guaran
                                                 ments                          tees
Notes                        (a)    (b)    (d)     (e)        (f)      (g)       (h)    (i)     (j)
                              £m     £m     £m      £m         £m       £m        £m     £m      £m
-------------------        ------- ------ ------  ------     ------   ------    ------ ------  ------
Interest
income                       119      -      -       -          -        -        10    (16)      -
Interest
expense                     (111)     -      -       -          -        -         -     (3)      -
-------------------        ------- ------ ------  ------     ------   ------    ------ ------  ------
Net interest
income                         8      -      -       -          -        -        10    (19)      -
-------------------        ------- ------ ------  ------     ------   ------    ------ ------  ------
Fee and
commission
income                       (50)     -      -       -          -        -       (12)    (3)      -
Fee and
commission
expense                       35      -      -       -          -        -         -      -       -
-------------------        ------- ------ ------  ------     ------   ------    ------ ------  ------
Net fee and
commission
income                       (15)     -      -       -          -        -       (12)    (3)      -
-------------------        ------- ------ ------  ------     ------   ------    ------ ------  ------
Dealing profits                -      -      -       -          -        -         -      -       -
Net trading
income                        (3)     -      -       -          -        -         -      -       -
Net investment
income                         3    582      -       -          -        -         -     11       -
-------------------        ------- ------ ------  ------     ------   ------    ------ ------  ------
Principal
transactions                   -    582      -       -          -        -         -     11       -
-------------------        ------- ------ ------  ------     ------   ------    ------ ------  ------
Net premiums
from insurance
contracts                     61    361      -       -          -        -         -      -       -
Other
operating
income                        11    (59)     -       -          -        -         -     10       -
-------------------        ------- ------ ------  ------     ------   ------    ------ ------  ------
Total
operating
income                        65    884      -       -          -        -        (2)    (1)      -
-------------------        ------- ------ ------  ------     ------   ------    ------ ------  ------
Impairment loss on loans       
and advances and other
credit risk provisions         -      -      -       -          -        -         -      -       -
Provisions for                 
contingent liabilities     
and commitments                -      -      -       -          -        -         -      -       -
-------------------        ------- ------ ------  ------     ------   ------    ------ ------  ------
Net operating
income                        65    884      -       -          -        -        (2)    (1)      -
-------------------        ------- ------ ------  ------     ------   ------    ------ ------  ------
Net claims and
benefits on
insurance
contracts                    (23)  (873)     -       -          -        -         -      -       -
Operating
expenses                     (37)   (91)   147     (32)       (84)     (22)        -     (4)      -
Administrative                 
expenses-staff costs           -      -      -       -          -        -         -      -       -
Administrative                 
expenses-other                 -      -      -       -          -        -         -      -       -
Depreciation and               
goodwill amortisation          -      -      -       -          -        -         -      -       -
Share of
results of
associates and
joint ventures                 -      -      3       -          -        -         -      -       -
Exceptional items              -      -      -       -          -        -         -      -       -
Profit on disposal of          
associates and joint       
ventures                       -      -      -       -          -        -         -      -       -
-------------------        ------- ------ ------  ------     ------   ------    ------ ------  ------
Profit before
tax                            5    (80)   150     (32)       (84)     (22)       (2)    (5)      -
-------------------        ------- ------ ------  ------     ------   ------    ------ ------  ------
Tax                            4    (64)     -       -         26        6         1      1       -
Dividends                      -      -      -       -          -        -         -      -   1,010
-------------------        ------- ------ ------  ------     ------   ------    ------ ------  ------
Profit for the
year                           9   (144)   150     (32)       (58)     (16)       (1)    (4)  1,010
-------------------        ------- ------ ------  ------     ------   ------    ------ ------  ------
Profit
attributable
to minority
interests                      1      -      -       -          -        -         -      -       -
Profit
attributable
to
shareholders                   8   (144)   150     (32)       (58)     (16)       (1)    (4)  1,010
-------------------        ------- ------ ------  ------     ------   ------    ------ ------  ------
                               9   (144)   150     (32)       (58)     (16)       (1)    (4)  1,010
-------------------        ------- ------ ------  ------     ------   ------    ------ ------  ------

                             Half-year ended
                              31st December
                                   2004
                            ------------------
                             Other       Total
                                     remeasure
Notes                           
                                £m          £m
--------------------        -------    --------
Interest income                  -         113
Interest expense                 -        (114)
--------------------         -------    --------
Net interest income              -          (1)
--------------------         -------    --------
Fee and commission income        -         (65)
Fee and commission expense       -          35
--------------------         -------    --------
Net fee and commission           
income                           -         (30)
--------------------         -------    --------
Dealing profits                  -           -
Net trading income               -          (3)
Net investment income           (2)        594
--------------------         -------    --------
Principal transactions          (2)        591
--------------------         -------    --------
Net premiums from insurance      
contracts                        -         422
Other operating income           -         (38)
--------------------         -------    --------
Total operating income          (2)        944
--------------------         -------    --------
Impairment loss on loans and     
advances and other                
credit risk provisions           -           -
Provisions for contingent        
liabilities and              
commitments                      -           - 
--------------------         -------    --------
Net operating income            (2)        944
--------------------         -------    --------
Net claims and benefits on
insurance                        
contracts                        -        (896)  
Operating expenses               -        (123)
Administrative                   
expenses-staff costs             -           -
Administrative                   
expenses-other                   -           -
Depreciation and goodwill        
amortisation                     -           -
Share of results of
associates and joint             
ventures                         3           6
Exceptional items                -           -
Profit on disposal of            
associates and joint         
ventures                         -           -
--------------------         -------    --------
Profit before tax                1         (69)
--------------------         -------    --------
Tax                              -         (26)
Dividends                        -       1,010
--------------------         -------    --------
Profit for the year              1         915
--------------------         -------    --------
Profit attributable to           
minority interests               -           1
Profit attributable to           
shareholders                     1         914
--------------------         -------    --------
                                 1         915
--------------------         -------    --------



                                    BARCLAYS PLC

    Analysis of remeasure column in income statement reconciliation for
    half-year to 30th June 2004.

                                        Half-year ended 30th June 2004

                   Consolidation        Life   Goodwill     Share    Pensions Intangible   Financial  Leasing Dividends
                                   assurance                based                 assets  guarantees
                                                         payments
Notes                        (a)          (b)       (d)        (e)        (f)        (g)          (h)      (i)      (j)

                             £m           £m        £m         £m         £m         £m           £m       £m       £m

Interest income             109            -         -          -          -          -            8       (15)      -
Interest expense           (108)           -         -          -          -          -            -        (2)      -
                         ------       ------      ----      -----      -----     ------       ------      ----  ------
Net interest income           1            -         -          -          -          -            8       (17)      -
                         ------       ------      ----      -----      -----     ------       ------      ----  ------
Fee and commission          
income                      (40)           -         -          -          -          -           (5)       (2)      -
Fee and commission            
expense                       9            -         -          -          -          -            -         -       -
                         ------       ------      ----      -----      -----     ------       ------      ----  ------
Net fee and                 
commission income           (31)           -         -          -          -          -           (5)       (2)      -
                         ------       ------      ----      -----      -----     ------       ------      ----  ------
Dealing profits               -            -         -          -          -          -            -         -       -
Net trading income           (3)           -         -          -          -          -            -         -       -
Net investment income         1          135         -          -          -          -            -        10       -
                         ------       ------      ----      -----      -----     ------       ------      ----  ------
Principal                    
transactions                 (2)         135         -          -          -          -            -        10       -
                         ------       ------      ----      -----      -----     ------       ------      ----  ------
Net premiums from            
insurance contracts          90          319         -          -          -          -            -         -       -
Other operating              
income                        3           12         -          -          -          -            -         8       -
                         ------       ------      ----      -----      -----     ------       ------      ----  ------
Total operating              
income                       61          466         -          -          -          -            3        (1)      -  
                         ------       ------      ----      -----      -----     ------       ------      ----  ------
Impairment loss on            
loans and advances
and other
credit risk
provisions                    -            -         -          -          -          -            -         -       -
Provisions for                
contingent
liabilities and
commitments                   -            -         -          -          -          -            -         -       -
                         ------       ------      ----      -----      -----     ------       ------      ----  ------
Net operating income         61          466         -          -          -          -            3        (1)      -
                         ------       ------      ----      -----      -----     ------       ------      ----  ------
Net claims and              
benefits on insurance
contracts                   (28)        (386)        -          -          -          -            -         -       -
Operating expenses          (37)         (51)      146        (17)       (90)        (9)           -        (5)      -
Administrative                
expenses-staff costs          -            -         -          -          -          -            -         -       -
Administrative                
expenses-other                -            -         -          -          -          -            -         -       -
Depreciation and              
goodwill amortisation         -            -         -          -          -          -            -         -       -
Share of results of           
associates and joint
ventures                      -            -         4          -          -          -            -         -       -
Exceptional items             -            -         -          -          -          -            -         -       -
Profit on disposal of         
associates and joint
ventures                      -            -         -          -          -          -            -         -       -
                         ------       ------      ----      -----      -----     ------       ------      ----  ------
Profit before tax            (4)          29       150        (17)       (90)        (9)           3        (6)      -
                         ------       ------      ----      -----      -----     ------       ------      ----  ------
Tax                          (4)           -         -          -         26          3           (1)        2       -
Dividends                     -            -         -          -          -          -            -         -     528
                         ------       ------      ----      -----      -----     ------       ------      ----  ------
Profit for the year          (8)          29       150        (17)       (64)        (6)           2        (4)    528
                         ------       ------      ----      -----      -----     ------       ------      ----  ------
Profit attributable           
to minority interests         -            -         -          -          -          -            -         -       -
Profit attributable          
to shareholders              (8)          29       150        (17)       (64)        (6)           2        (4)    528
                         ------       ------      ----      -----      -----     ------       ------      ----  ------
                             (8)          29       150        (17)       (64)        (6)           2        (4)    528
                         ------       ------      ----      -----      -----     ------       ------      ----  ------


                            Other      Total
                                   remeasure
Notes                          £m         £m

Interest income                 -        102
Interest expense                -       (110)
                           ------    -------
Net interest income             -         (8)
                           ------    -------
Fee and commission income       -        (47)
Fee and commission expense      -          9
                           ------    -------
Net fee and commission          
income                          -        (38)
                           ------    -------
Dealing profits                 -          -
Net trading income              -         (3)
Net investment income           -        146
                           ------    -------
Principal transactions          -        143
                           ------    -------
Net premiums from insurance     
contracts                       -        409
Other operating income          -         23
                           ------    -------
Total operating income          -        529
                           ------    -------
Impairment loss on loans and    
advances and other
credit risk provisions          -          -
Provisions for contingent       
liabilities and commitments     -          -
                           ------    -------
Net operating income            -        529
                           ------    -------
Net claims and benefits on      
insurance contracts             -       (414)
Operating expenses              -        (63)
Administrative                  
expenses-staff costs            -          -
Administrative                  
expenses-other                  -          -
Depreciation and goodwill       
amortisation                    -          -
Share of results of             
associates and joint
ventures                        -          4
Exceptional items               -          -
Profit on disposal of          
associates and joint
ventures                        -          -
                           ------    -------
Profit before tax               -         56
                           ------    -------
Tax                             -         26
Dividends                       -        528
                           ------    -------
Profit for the year             -        610
                           ------    -------
Profit attributable to          
minority interests              -          -
Profit attributable to          
shareholders                    -        610
                           ------    -------
                                -        610
                           ------    -------



    BARCLAYS PLC

    Balance sheet - assets reconciliation as at periods from 1st January 2004 -
    1st January 2005.

                                      1st January 2005                          31st December 2004

                        IFRS      Reclassify   Remeasure      IFRS      UK GAAP   Reclassify   Remeasure       IFRS
                     (except
                   IAS 32/39
                    & IFRS 4)

ASSETS                    £m              £m          £m        £m           £m           £m          £m         £m

Cash and balances      
at central banks       1,753               -       1,485     3,238        1,753            -           -      1,753     
Items in the           
course of
collection from
other banks            1,772               -           -     1,772        1,772            -           -      1,772
Treasury bills and     
other
eligible bills         6,658          (6,658)          -         -        6,658            -           -      6,658
Trading portfolio          
assets                     -         112,356         885   113,241            -            -           -          -
Non-trading
financial
instruments fair
valued through
profit and loss:
- held on own              
account                    -               -       2,367     2,367            -            -           -          -
- held in respect          
of linked
liabilities to
customers under
investment
contracts                  -               -      63,124    63,124            -            -           -          -
Derivative                 
financial
instruments                -          17,958      76,382    94,340            -            -           -          -
Loans and advances    
to banks              80,632         (60,804)      5,900    25,728       75,131            -       5,501     80,632
Loans and advances   
to customers         262,409         (64,408)     12,958   210,959      254,946            -       7,463    262,409
Debt securities      130,311        (130,311)          -         -      127,428            -       2,883    130,311
Equity shares         11,399         (11,399)          -         -       12,166            -        (767)    11,399
Available for sale         
financial
investments                -          46,523       1,968    48,491            -            -           -          -
Reverse repurchase         
agreements and
cash collateral on
securities
borrowed                   -         119,399      20,175   139,574            -            -           -          -
Other assets          25,915         (21,812)       (508)    3,595       22,154        5,078      (1,317)    25,915
Insurance assets,      
including
unit-linked assets     8,576            (844)     (7,579)      153            -        8,378         198      8,576
Investments in           
associates and
joint ventures           429               -           -       429          409            -          20        429
Goodwill               4,518               -           -     4,518            -        4,295         223      4,518
Intangible assets        139               -           -       139        4,295       (4,295)        139        139
Property, plant        
and equipment          2,282               -           -     2,282        1,921            -         361      2,282
Prepayments and            
accrued income             -               -           -         -        5,078       (5,078)          -          -
Deferred tax           
assets                 1,388               -         254     1,642            -            -       1,388      1,388
Retail life-fund           
assets
attributable to
policyholders              -               -            -        -        8,378       (8,378)          -          -
                     -------      ----------     --------  -------     --------      -------     -------   --------
Total assets         538,181               -      177,411  715,592      522,089            -      16,092    538,181
                     -------      ----------     --------  -------     --------      -------     -------   --------


                                        30th June 2004                                1st January 2004

                    UK GAAP   Reclassify     Remeasure     IFRS    UK GAAP    Reclassify    Remeasure       IFRS

ASSETS                  £m            £m            £m       £m         £m            £m           £m         £m
Cash and balances    
at central banks     1,829             -             -    1,829      1,726             -            -      1,726
Items in the         
course of
collection from
other banks          2,527             -             -    2,527      2,006             -            -      2,006
Treasury bills       
and other
eligible bills       6,547             -             -    6,547      7,177             -            -      7,177
Trading portfolio        
assets                   -             -             -        -          -             -            -          -
Non-trading
financial
instruments fair
valued through
profit and loss:
- held on own            
account                  -             -             -        -          -             -            -          -
- held in respect        
of linked
liabilities to
customers under
investment
contracts                -             -             -        -          -             -            -          -
Derivative               
financial
instruments              -             -             -        -          -             -            -          -
Loans and           
advances to banks   76,677             -         6,357   83,034     61,924             -        5,069     66,993
Loans and          
advances to
customers          247,073             -         4,980  252,053    226,819             -        3,953    230,772
Debt securities   117,387              -         2,453  119,840     97,393             -        2,503     99,896
Equity shares       9,365              -          (766)   8,599      7,859             -         (765)     7,094
Available for           
sale financial
investments             -              -             -        -          -             -            -          -
Reverse                 
repurchase
agreements and
cash collateral
on securities
borrowed                -              -             -        -          -             -            -          -
Other assets       17,665          4,575          (896)  21,344     19,736         3,921         (929)    22,728
Insurance assets,       
including
unit-linked
assets                  -          7,911           254    8,165          -         8,077          197      8,274
Investments in        
associates and
joint ventures        429              -            13      442        428             -           10        438
Goodwill                -          4,263           135    4,398          -         4,406          (13)     4,393
Intangible assets   4,263         (4,263)           62       62      4,406        (4,406)          64         64
Property, plant     
and equipment       1,746              -           362    2,108      1,790             -          333      2,123
Prepayments and     
accrued income      4,575         (4,575)            -        -      3,921        (3,921)           -          -
Deferred tax            
assets                  -              -         1,383    1,383          -             -        1,348      1,348
Retail life-fund    
assets
attributable to
policyholders       7,911         (7,911)            -        -      8,077        (8,077)           -          -
                  -------        -------       -------  -------   --------       -------     --------   --------
Total assets      497,994              -        14,337  512,331    443,262             -       11,770    455,032
                  -------        -------       -------  -------   --------       -------     --------   --------



BARCLAYS PLC

Balance sheet - liabilities reconciliation as at periods from 1st January 2004 - 1st January 2005.

                        1st January 2005                             31st December 2004
                  -----------------------------------------    --------------------------------------------
                      IFRS  Reclassify   Remeasure     IFRS    UK GAAP   Reclassify   Remeasure      IFRS
                   (except
                   IAS 32/
                        39
                 & IFRS 4)
LIABILITIES            £m           £m          £m        £m        £m           £m          £m        £m
-----------------  --------      -------    --------   -------    ------      -------    --------    ------
Deposits from
banks             111,024      (42,390)      6,101    74,735   111,024            -           -   111,024
Items in the
course of
collection due
to other banks      1,205            -           -     1,205     1,205            -           -     1,205
Customer
accounts          217,492      (34,078)     11,074   194,488   217,718            -        (226)  217,492
Trading
portfolio
liabilities             -       53,903       5,211    59,114         -            -           -         -
Liabilities to
customers
under
investment
contracts               -            -      64,609    64,609         -            -           -         -
Derivative
financial
instruments             -       18,289      76,929    95,218         -            -           -         -
Debt
securities in
issue              83,842          273      (3,361)   80,754    67,806            -      16,036    83,842
Repurchase
agreements and
cash
collateral on
securities
lent                    -       78,351      20,231    98,582         -            -           -         -
Other
liabilities        82,936      (74,567)      1,490     9,859    75,981        6,582         373    82,936
Accruals and
deferred
income                  -            -           -         -     6,582       (6,582)          -         -
Current tax
liabilities           621            -           -       621       584            -          37       621
Insurance
contract
liabilities
including
unit-linked
liabilities         8,377            -      (4,781)    3,596         -        8,378          (1)    8,377
Subordinated
liabilities:
- Undated loan
capital-
non
convertible         6,149           98      (2,039)    4,208     6,149            -           -     6,149
- Dated loan
capital-conver
tible
to
preference
shares                 15            -           -        15        15            -           -        15
- Dated loan
capital-
non
convertible         6,113          121         149     6,383     6,113            -           -     6,113
Deferred tax
liabilities         1,362            -           3     1,365       738            -         624     1,362
Other
provisions for
liabilities           416            -         (13)      403       467            -         (51)      416
Dividend                -            -           -         -     1,011            -      (1,011)        -
Retirement
benefit
liabilities         1,865            -           -     1,865         -            -       1,865     1,865
Retail-life
fund
liabilities to
policyholders           -            -           -         -     8,378       (8,378)          -         -
-----------------  --------      -------    --------   -------    ------      -------    --------    ------
Total
liabilities       521,417            -     175,603   697,020   503,771            -      17,646   521,417
-----------------  --------      -------    --------   -------    ------      -------    --------    ------

                         30th June  2004                                1st January 2004
               -------------------------------------------  ------------------------------------------                  
               UK GAAP   Reclassify   Remeasure      IFRS   UK GAAP   Reclassify   Remeasure      IFRS
LIABILITIES         £m           £m          £m        £m        £m           £m          £m        £m
--------        --------     --------    --------  --------  --------     --------    --------  --------
Deposits from
banks          115,836            -           -   115,836    94,092            -           -    94,092
Items in the
course of
collection due
to other banks   1,442            -           -     1,442     1,286            -           -     1,286
Customer
accounts       206,204            -         (34)  206,170   184,868            -         (72)  184,796
Trading              
portfolio
liabilities          -            -           -         -         -            -           -         -
Liabilities to       -            -           -         -         -            -           -         -
customers
under
investment
contracts
Derivative           -            -           -         -         -            -           -         -
financial
instruments
Debt
securities in
issue           55,280            -      14,151    69,431    49,569            -      11,900    61,469
Repurchase           
agreements and
cash
collateral on
securities
lent                 -            -           -         -         -            -           -         -
Other
liabilities     74,262        5,212          72    79,546    69,000        4,983          85    74,068
Accruals and
deferred
income           5,212       (5,212)          -         -     4,983       (4,983)          -         -
Current tax
liabilities        680            -          17       697       497            -          17       514
Insurance
contract
liabilities
including
unit-linked
liabilities          -        7,911          33     7,944         -        8,077         (54)    8,023
Subordinated
liabilities:
- Undated loan
capital-
non
convertible      6,233            -           -     6,233     6,310            -           -     6,310
- Dated loan
capital-conver
tible
to
preference
shares              15            -           -        15        17            -           -        17
- Dated loan
capital-
non
convertible      6,220            -           -     6,220     6,012            -           -     6,012
Deferred tax
liabilities        665            -         619     1,284       646            -         611     1,257
Other
provisions for
liabilities        393            -         (64)      329       369            -          11       380
Dividend           529            -        (529)        -       879            -        (879)        -
Retirement
benefit
liabilities          -            -       2,028     2,028         -            -       1,885     1,885
Retail-life
fund
liabilities to
policyholders    7,911       (7,911)          -         -     8,077       (8,077)          -         -
--------        --------     --------    --------  --------  --------     --------    --------  --------
Total
liabilities    480,882            -      16,293   497,175   426,605            -      13,504   440,109
--------        --------     --------    --------  --------  --------     --------    --------  --------



BARCLAYS PLC

Balance sheet - shareholders' equity reconciliation as at periods from 1st January 2004 - 1st January 2005.

                            1st January 2005                             31st December 2004
                 ------------------------------------------  --------------------------------------------
                    IFRS   Reclassify   Remeasure      IFRS   UK GAAP   Reclassify   Remeasure      IFRS
                 (except
                 IAS 32/
                      39
               & IFRS 4)
SHAREHOLDERS'         £m           £m          £m        £m        £m           £m          £m        £m
EQUITY              ------        -----      ------    ------     -----        -----      ------     -----
-------------
Called up
share capital      1,614            -           -     1,614     1,614            -           -     1,614
Share premium
account            5,524            -           -     5,524     5,524            -           -     5,524
Less: Treasury
shares              (119)           -           -      (119)        -         (119)          -      (119)
Available for
sale reserve           -            -         314       314         -            -           -         -
Revaluation
reserve                -            -           -         -        24          (24)          -         -
Cashflow
hedging
reserve                -            -         302       302         -            -           -         -
Capital
redemption
reserve              309            -           -       309       309            -           -       309
Other capital
reserve              617            -           -       617       617            -           -       617
Translation
reserve              (58)           -           -       (58)        -          (58)          -       (58)
Retained
earnings           7,983            -      (1,244)    6,739     9,329          201      (1,547)    7,983
-------------       ------        -----      ------    ------     -----        -----      ------     -----
Shareholders'
equity
excluding
minority
interests         15,870            -        (628)   15,242    17,417            -      (1,547)   15,870
-------------       ------        -----      ------    ------     -----        -----      ------     -----
Minority
interests            894            -       2,436     3,330       901            -          (7)      894
-------------       ------        -----      ------    ------     -----        -----      ------     -----
Total
shareholders'
equity            16,764            -       1,808    18,572    18,318            -      (1,554)   16,764
-------------       ------        -----      ------    ------     -----        -----      ------     -----
Total
liabilities
and
shareholders'
equity           538,181            -     177,411   715,592   522,089            -      16,092   538,181
-------------       ------        -----      ------    ------     -----        -----      ------     -----

                          30th June 2004                                   1st January 2004
              ---------------------------------------------   ---------------------------------------------    
              UK GAAP    Reclassify   Remeasure       IFRS       UK GAAP    Reclassify   Remeasure   IFRS
SHAREHOLDERS'       £m           £m          £m         £m         £m           £m          £m         £m
EQUITY          
---------       --------     --------    --------   --------   --------     --------    --------   --------
Called up
share capital    1,613            -           -      1,613      1,642            -           -      1,642
Share premium
account          5,437            -           -      5,437      5,417            -           -      5,417
Less:
Treasury             
shares               -         (115)          -       (115)         -          (84)          -        (84)
Available for        
sale                 
reserve              -            -           -          -          -            -           -          -
Revaluation
reserve             24          (24)          -          -         24          (24)          -          -
Cashflow            
hedging
reserve              -            -           -          -          -            -           -          -
Capital
redemption
reserve            305            -           -        305        274            -           -        274
Other capital
reserve            617            -           -        617        617            -           -        617
Translation
reserve              -          (43)          -        (43)         -            -           -          -
Retained
earnings         8,938          182      (1,956)     7,164      8,400          108      (1,734)     6,774
---------       --------     --------    --------   --------   --------     --------    --------   --------
Shareholders'
equity
excluding
minority
interests       16,934            -      (1,956)    14,978     16,374            -      (1,734)    14,640
---------       --------     --------    --------   --------   --------     --------    --------   --------
Minority
interests          178            -           -        178        283            -           -        283
---------       --------     --------    --------   --------   --------     --------    --------   --------
Total
shareholders'
equity          17,112            -      (1,956)    15,156     16,657            -      (1,734)    14,923
---------       --------     --------    --------   --------   --------     --------    --------   --------
Total
liabilities
and
shareholders'
equity         497,994            -      14,337    512,331    443,262            -      11,770    455,032
---------       --------     --------    --------   --------   --------     --------    --------   --------



BARCLAYS PLC

Analysis of remeasure column in balance sheet - assets as at 1st January 2005.

                                                     As at 1st January 2005
        ----------------------------------------------------------------------------------------------------------------

        Derivatives,   Netting       Capital         Loan  Effective    Insurance   Derecognition  Other        Total
           financial             instruments   impairment   interest    contracts   and financial           remeasure
         instruments                                                                 liabilities
           and hedge
          accounting
Notes        (n),(o)       (p)           (q)          (r)         (s)         (t)             (u)
ASSETS            £m        £m            £m           £m          £m          £m              £m     £m          £m
--------------- ------    ------        ------       ------      ------      ------          ------  ------    ------
Cash and
balances at
central banks       -         -             -            -           -       1,485               -      -       1,485
Items in the 
course of           
collection from 
other banks         -         -             -            -           -           -               -      -           -
Treasury 
bills and other     
eligible bills      -         -             -            -           -           -               -      -           -
Trading
portfolio
assets             (8)    5,211             -            -           -           -          (4,318)     -         885
Non-trading 
financial
instrument 
fair valued
through profit
and loss:
- held on own
account            25         -             -            -           -       2,342               -      -       2,367
- held in
respect of
linked
liabilities to
customers
under
investment
contracts           -         -             -            -           -      63,124               -      -      63,124
Derivative
financial
instruments       483    75,899             -            -           -           -               -      -      76,382
Loans and
advances to
banks               -     5,602             -           (1)          -           -             299      -       5,900
Loans and
advances to
customers          39    12,957             1          (23)        (16)          -               -      -      12,958
Debt 
securities          -         -             -            -           -           -               -      -           -
Equity 
securities          -         -             -            -           -           -               -      -           -
Available for
sale financial
investments       819         -             -            -           -       1,149               -      -       1,968
Reverse
repurchase
agreements and
cash
collateral on
securities
borrowed            -    20,175             -            -           -           -               -      -      20,175
Other assets     (456)       23             -            -         (54)          -             (21)     -        (508)
Insurance
assets,
including
unit-linked
assets              -         -             -            -           -      (7,579)              -      -      (7,579)
Investments in      
associates 
and joint
ventures            -         -             -            -           -           -               -      -           -
Goodwill            -         -             -            -           -           -               -      -           -
Intangible 
assets              -         -             -            -           -           -               -      -           -
Property, 
plant and           
equipment           -         -             -            -           -           -               -      -           -
Prepayments 
and accrued         
income              -         -             -            -           -           -               -      -           -
Deferred tax
assets             93         -             2            -          62           -              97      -         254
Retail 
life-fund assets    
attributable to 
policyholders       -         -             -            -           -           -               -      -           -
--------------- ------    ------        ------       ------      ------      ------          ------  ------    ------
Total assets      995   119,867             3          (24)         (8)     60,521          (3,943)     -     177,411
--------------- ------    ------        ------       ------      ------      ------          ------  ------    ------



BARCLAYS PLC

Analysis of remeasure column in balance sheet - liabilities as at 1st January 2005.

                                                     As at 1st January 2005
             -------------------------------------------------------------------------------------------------------
                Deri  Netting       Capital         Loan   Effective   Insurance   Derecognition   Other      Total
            vatives,            instruments   impairment    interest   contracts   and financial          remeasure
               finan                                                                 liabilities
                cial
              instru 
               ments                                                                 
           and hedge
             account
                 ing
Notes        (n),(o)      (p)           (q)          (r)         (s)         (t)             (u)
LIABILITIES      £m        £m            £m           £m          £m          £m              £m      £m         £m
-------------- -----    ------        ------       ------     -------      ------          ------   -----  ---------
Deposits from
banks            76     7,726             -            -           -           -          (1,701)      -      6,101
Items in the
course            
of collection 
due
to other 
banks             -         -             -            -           -           -               -       -          -
Customer
accounts     (1,049)   11,420            49            -           -         514             140       -     11,074
Trading
portfolio
liabilities       -     5,211             -            -           -           -               -       -      5,211
Liabilities to
customers
under
investment
contracts         -         -             -            -           -      64,609               -       -     64,609
Derivative
financial
instruments   1,546    75,313             -            -          77           -              (7)      -     76,929
Debt
securities in
issue            76         -            10            -           3           -          (3,450)      -     (3,361)
Reverse
repurchase
agreements and
cash
collateral on
securities
lent             56    20,175             -            -           -           -               -       -     20,231
Other
liabilities      29        22            (4)           -          49          78           1,316       -      1,490
Accruals and      
deferred income   -         -             -            -           -           -               -       -          -
Current tax       
liabilities       -         -             -            -           -           -               -       -          -
Insurance
contract
liabilities
including
unit-linked
liabilities       -         -             -            -           -      (4,781)              -       -     (4,781)
Subordinated
liabilities:
- Undated loan
capital-non
convertible       7         -        (2,051)           -           5           -               -       -      (2,039)
- Dated loan      -         -             -            -           -           -               -       -           -
capital-
convertible
to preference
shares
- Dated loan
capital-non
convertible     146         -             -            -           3           -               -       -         149
Deferred tax
liabilities       -         -             -            -           -           3               -       -           3
Other
provisions for
liabilities       -         -             -            -           -           -             (13)      -         (13)
Dividend          -         -             -            -           -           -               -       -           -
Retirement 
benefit           
liabilities       -         -             -            -           -           -               -       -           -
Retail-life 
fund              
liabilities to
policyholders     -         -             -            -           -           -               -       -           -
-------------- -----    ------        ------       ------     -------      ------          ------   -----  ---------
Total
liabilities     887   119,867        (1,996)           -         137      60,423          (3,715)      -    175,603
-------------- -----    ------        ------       ------     -------      ------          ------   -----  ---------




BARCLAYS PLC

Analysis of remeasure column in balance sheet - shareholders' equity as at 1st
January 2005.

                                                     As at 1st January 2005
                --------------------------------------------------------------------------------------------------------
              Derivatives,    Netting      Capital         Loan   Effective   Insurance   Derecognition   Other    Total
                 financial             instruments   impairment    interest   contracts   and financial               re
               instruments                                                                  liabilities          measure
                 and hedge
                accounting
Notes              (n),(o)       (p)           (q)          (r)         (s)         (t)             (u)
SHAREHOLDERS' 
EQUITY                  £m        £m            £m           £m          £m          £m              £m      £m     £m
---------------     ------    ------        ------       ------      ------      ------          ------  ------   -----
Called up share          
capital                  -         -             -            -           -           -               -       -       -
Share premium account    -         -             -            -           -           -               -       -       -
Less: Treasury shares    -         -             -            -           -           -               -       -       -
Available for
sale reserve           314         -             -            -           -           -               -       -     314
Revaluation reserve      -         -             -            -           -           -               -       -       -
Cashflow
hedging
reserve                302         -             -            -           -           -               -       -     302
Capital redemption       
reserve                  -         -             -            -           -           -               -       -       -
Other capital reserve    -         -             -            -           -           -               -       -       -
Translation reserve      -         -             -            -           -           -               -       -       -
Retained
earnings              (506)        -          (439)         (24)       (145)         98            (228)      -  (1,244)
---------------     ------    ------        ------       ------      ------      ------          ------  ------   -----
Shareholders'
equity
excluding
minority
interests              110        -          (439)         (24)       (145)         98            (228)      -     (628)
---------------     ------    ------        ------       ------      ------      ------          ------  ------   -----
Minority
interests              (2)        -         2,438            -           -           -               -       -    2,436
---------------     ------    ------        ------       ------      ------      ------          ------  ------   -----
Total
shareholders'
equity                108         -         1,999          (24)       (145)         98            (228)      -    1,808
---------------     ------    ------        ------       ------      ------      ------          ------  ------   -----
Total
liabilities
and
shareholders'
equity                995   119,867             3          (24)         (8)     60,521          (3,943)      -  177,411
---------------     ------    ------        ------       ------      ------      ------          ------  ------   -----



BARCLAYS PLC

Analysis of remeasure column in balance sheet - assets as at 31st December 2004.

                                                     As at 31st December 2004
                --------------------------------------------------------------------------------------------------------
                  Consoli       Life   Goodwill      Share   Pensions   Intangible   Financial    Leasing  Dividends
                   dation  assurance                 based                  assets  guarantees     
                                                  payments                  
Notes                (a)         (b)        (d)        (e)        (f)          (g)          (h)       (i)        (j)
ASSETS                £m          £m         £m         £m         £m           £m           £m        £m         £m
------------------  -------      ------     ------     ------     ------       ------       ------    ------   -------
Cash and balances       -           -          -          -          -            -            -         -          -
at central banks
Items in the            -           -          -          -          -            -            -         -          -
course of
collection from
other banks
Treasury bills and      -           -          -          -          -            -            -         -          -
other eligible
bills
Trading portfolio       -           -          -          -          -            -            -         -          -
assets
Non-trading
financial
instruments fair
valued through
profit and loss:
- held on own           -           -          -          -          -            -            -         -          -
account
- held in respect       -           -          -          -          -            -            -         -          -
of linked
liabilities to
customers
under investment
contracts
Derivative              -           -          -          -          -            -            -         -          -
financial
instruments
Loans and
advances to
banks               5,376         125          -          -          -            -            -         -          -
Loans and
advances to
customers           8,026           -          -          -          -            -            -      (618)         -
Debt
securities          2,883           -          -          -          -            -            -         -          -
Equity shares        (768)          -          -          -          -            -            -         -          -
Available for sale      -           -          -          -          -            -            -         -          -
financial
investments
Reverse repurchase      -           -          -          -          -            -            -         -          -
agreements and
cash
collateral on
securities
borrowed
Other assets          246        (877)         -          5       (843)         (49)         201         -          -
Insurance
assets,
including
unit-linked
assets                 41         157          -          -          -            -            -         -          -
Investments in
associates and
joint ventures          -           -          7          -          -            -            -         -          -
Goodwill                -           -        223          -          -            -            -         -          -
Intangible
assets                  -           -         71          -          -           68            -         -          -
Property,
plant and
equipment               -           -          -          -          -            -            -       361          -
Prepayments and         -           -          -          -          -            -            -         -          -
accrued income
Deferred tax
assets                536           -          -          -        756            -           12        84          -
Retail life-fund        -           -          -          -          -            -            -         -          -
assets              
attributable to
policyholders
------------------  -------      ------     ------     ------     ------       ------       ------    ------   -------
Total assets        16,340        (595)       301          5        (87)          19          213      (173)         -
------------------  -------      ------     ------     ------     ------       ------       ------    ------   -------

                      As at 31st December 2004
                      ------------------------
                            Other       Total
                                    remeasure
Notes
ASSETS                         £m          £m
------------------         -------   ---------
Cash and balances at            -           -
central banks
Items in the course of          -           -
collection from other
banks
Treasury bills and other        -           -
eligible bills
Trading portfolio assets        -           -
Non-trading financial           -           -
instruments fair valued
through profit and loss:
- held on own account           -           -
- held in respect of linked     -           -
liabilities to customers
under investment
contracts
Derivative financial            -           -
instruments
Loans and advances to banks     -       5,501
Loans and advances to          55       7,463
customers
Debt securities                 -       2,883
Equity shares                   1        (767)
Available for sale              -           -
financial investments
Reverse repurchase              -           -
agreements and cash
collateral on securities
borrowed
Other assets                    -      (1,317)
Insurance assets, including     -         198
unit-linked assets
Investments in associates      13          20
and joint ventures
Goodwill                        -         223
Intangible assets               -         139
Property, plant and             -         361
equipment
Prepayments and accrued         -           -
income
Deferred tax assets             -       1,388
Retail life-fund assets         -           -
attributable to
policyholders
------------------         -------   ---------
Total assets                   69      16,092
------------------         -------   ---------



BARCLAYS PLC

Analysis of remeasure column in balance sheet - liabilities as at 31st December 2004.

                                                     As at 31st December 2004
                --------------------------------------------------------------------------------------------------------
               Consoli        Life       Good      Share  Pensions   Intangible    Financial    Leasing      Divi
                dation       assur       will      based                 assets       guaran                dends
                              ance                   pay                                tees
                                                   ments                               
Notes              (a)         (b)        (d)        (e)        (f)          (g)          (h)       (i)       (j)
LIABILITIES         £m          £m         £m         £m         £m           £m           £m        £m        £m
----------------- -------      ------     ------     ------     ------       ------       ------    ------     ------
Deposits from        -           -          -          -          -            -            -         -          -
banks
Items in the         -           -          -          -          -            -            -         -          -
course of
collection due to
other banks
Customer
accounts          (226)          -          -          -          -            -            -         -          -
Trading portfolio    -           -          -          -          -            -            -         -          -
liabilities
Liabilities to       -           -          -          -          -            -            -         -          -
customers under
investment
contracts
Derivative           -           -          -          -          -            -            -         -          -
financial
instruments
Debt
securities in
issue            16,036           -          -          -          -            -            -         -          -
Repurchase            -           -          -          -          -            -            -         -          -
agreements and
cash collateral on
securities lent
Other
liabilities          90          35          -        (22)         -            -          247        23          -
Accruals and          -           -          -          -          -            -            -         -          -
deferred income
Current tax
liabilities           -          37          -          -          -            -            -         -          -
Insurance
contract
liabilities
including
unit
-linked
liabilities           40         (41)         -          -          -            -            -         -         -
Subordinated
liabilities:
- Undated loan         -           -          -          -          -            -            -         -         -
capital-non
convertible
- Dated loan           -           -          -          -          -            -            -         -         -
capital-
convertible to
preference
shares
Dated loan             -           -          -          -          -            -            -         -          -
capital-non
convertible
Deferred tax
liabilities          536          82          -          -          -            6            -         -          -
Other
provisions for
liabilities           27           -          -          -       (133)           -            -         -          -
Dividend               -           -          -          -          -            -            -         -     (1,011)
Retirement
benefit
liabilities            -           -          -          -      1,865            -            -         -          -
Retail-life fund       -           -          -          -          -            -            -         -          -
liabilities to   
policyholders
----------------- -------      ------     ------     ------     ------       ------       ------    ------     ------
Total
liabilities       16,503         113          -        (22)     1,732            6          247        23     (1,011)
----------------- -------      ------     ------     ------     ------       ------       ------    ------     ------

                      As at 31st December 2004
                      ------------------------

                            Other       Total
                                    remeasure
Notes
LIABILITIES                    £m          £m
------------------          -----   ---------
Deposits from banks             -           -
Items in the course of          -           -
collection due to other
banks
Customer accounts               -        (226)
Trading portfolio               -           -
liabilities
Liabilities to customers        -           -
under investment
contracts
Derivative financial            -           -
instruments
Debt securities in issue        -      16,036
Repurchase agreements and       -           -
cash collateral on
securities lent
Other liabilities               -         373
Accruals and deferred           -           -
income
Current tax liabilities         -          37
Insurance contract
liabilities including           -          (1)
unit-linked liabilities
Subordinated liabilities:
- Undated loan capital-non      -           -
convertible
- Dated loan capital-           -           -
convertible to preference
shares
Dated loan capital-non          -           -
convertible
Deferred tax liabilities        -         624
Other provisions for           55         (51)
liabilities
Dividend                        -      (1,011)
Retirement benefit              -       1,865
liabilities
Retail-life fund                -           -
liabilities to
policyholders
------------------          -----   ---------
Total liabilities              55      17,646
------------------          -----   ---------



BARCLAYS PLC

Analysis of remeasure column in balance sheet - shareholders' equity as at 31st December 2004.

                                        As at 31st December 2004
                    -------------------------------------------------------------------------------
                       Consoli   Life   Good   Share   Pensions  Intangible   Finan  Leas     Divi
                        dation  assur   will   based                 assets    cial   ing    dends
                                 ance            pay                         guaran
                                               ments                           tees
Notes                      (a)    (b)    (d)     (e)        (f)          (g)    (h)    (i)     (j)
SHAREHOLDERS' EQUITY        £m     £m     £m      £m         £m           £m     £m     £m      £m
------------------       ------- ------ ------  ------     ------       ------ ------ ------  ------
Called up share              -      -      -       -          -            -      -      -       -
capital
Share premium account        -      -      -       -          -            -      -      -       -
Less: Treasury shares        -      -      -       -          -            -      -      -       -
Available for sale           -      -      -       -          -            -      -      -       -
reserve
Revaluation reserve          -      -      -       -          -            -      -      -       -
Cashflow hedging             -      -      -       -          -            -      -      -       -
reserve
Capital redemption           -      -      -       -          -            -      -      -       -
reserve
Other capital reserve        -      -      -       -          -            -      -      -       -
Translation reserve          -      -      -       -          -            -      -      -       -
Retained
earnings                  (156)  (708)   301      27     (1,819)          13    (34)  (196)  1,011
------------------       ------- ------ ------  ------     ------       ------ ------ ------  ------
Shareholders'
equity
excluding
minority
interest                  (156)  (708)   301      27     (1,819)          13    (34)  (196)  1,011
------------------       ------- ------ ------  ------     ------       ------ ------ ------  ------
Minority
interest                    (7)     -      -       -          -            -      -      -       -
------------------       ------- ------ ------  ------     ------       ------ ------ ------  ------
Total
shareholders'
equity                    (163)  (708)   301      27     (1,819)          13    (34)  (196)  1,011
------------------       ------- ------ ------  ------     ------       ------ ------ ------  ------
Total
liabilities
and
shareholders'
equity                  16,340   (595)   301       5        (87)          19    213   (173)      -
------------------       ------- ------ ------  ------     ------       ------ ------ ------  ------

                   As at 31st December 2004
                      ------------------
                       Other       Total
                               remeasure
Notes
SHAREHOLDERS' EQUITY      £m          £m
------------------    ------       ------
Called up share            -           -
capital
Share premium              -           -
account
Less: Treasury             -           -
shares
Available for sale         -           -
reserve
Revaluation reserve        -           -
Cashflow hedging           -           -
reserve
Capital redemption         -           -
reserve
Other capital              -           -
reserve
Translation reserve        -           -
Retained earnings         14      (1,547)
------------------    ------       ------
Shareholders' equity      14      (1,547)
excluding minority
interest
------------------    ------       ------
Minority interest          -          (7)
------------------    ------       ------
Total shareholders'       14      (1,554)
equity
------------------    ------       ------
Total liabilities and     69      16,092
shareholders' equity
------------------    ------       ------



BARCLAYS PLC

Analysis of remeasure column in balance sheet - assets as at 30th June 2004.

                                        As at 30th June 2004
                        ----------------------------------------------------------------------------
                        Consoli  Life   Good   Share   Pensions   Intangible  Finan  Leas     Divi
                         dation assur   will   based                  assets   cial   ing    dends
                                 ance            pay                         guaran
                                               ments                           tees
Notes                      (a)    (b)    (d)     (e)        (f)          (g)    (h)    (i)     (j)
ASSETS                      £m     £m     £m      £m         £m           £m     £m     £m      £m
------------------       ------- ------ ------  ------     ------       ------ ------ ------  ------
Cash and balances at         -      -      -       -          -            -      -      -       -
central banks
Items in the course of       -      -      -       -          -            -      -      -       -
collection from other
banks
Treasury bills and           -      -      -       -          -            -      -      -       -
other eligible bills
Trading portfolio            -      -      -       -          -            -      -      -       -
assets
Non-trading financial        -      -      -       -          -            -      -      -       -
instruments fair valued
through profit and
loss:
- held on own account        -      -      -       -          -            -      -      -       -
- held in respect of         -      -      -       -          -            -      -      -       -
linked liabilities to
customers
under investment
contracts
Derivative financial         -      -      -       -          -            -      -      -       -
instruments
Loans and
advances to
banks                    6,352      5      -       -          -            -      -      -       -
Loans and
advances to
customers                5,504      -      -       -          -            -      -   (609)      -
Debt
securities               2,453      -      -       -          -            -      -      -       -
Equity shares             (769)     -      -       -          -            -      -      -       -
Available for sale           -      -      -       -          -            -      -      -       -
financial investments
Reverse repurchase           -      -      -       -          -            -      -      -       -
agreements and cash
collateral on
securities borrowed
Other assets               218   (637)     -      (6)      (614)          (8)   157     (6)      -
Insurance
assets,
including
unit-linked
assets                      39    215      -       -          -            -      -      -       -
Investments in
associates and
joint ventures               -      -      3       -          -            -      -      -       -
Goodwill                     -      -    135       -          -            -      -      -       -
Intangible
assets                       -      -     13       -          -           49      -      -       -
Property,
plant and
equipment                    -      -      -       -          -            -      -    362       -
Prepayments and accrued      -      -      -       -          -            -      -      -       -
income
Deferred tax
assets                     553      -      -       -        732            -     14     84       -
Retail life-fund assets      -      -      -       -          -            -      -      -       -
attributable to          
policyholders
------------------       ------- ------ ------  ------     ------       ------ ------ ------  ------
Total assets            14,350   (417)   151      (6)       118           41    171   (169)      -
------------------       ------- ------ ------  ------     ------       ------ ------ ------  ------

                          As at 30th June 2004
                          --------------------
                            Other       Total
                                    remeasure
Notes
ASSETS                         £m          £m
------------------        -------    --------
Cash and balances at            -           -
central banks
Items in the course of          -           -
collection from other
banks
Treasury bills and other        -           -
eligible bills
Trading portfolio assets        -           -
Non-trading financial           -           -
instruments fair valued
through profit and loss:
- held on own account           -           -
- held in respect of linked     -           -
liabilities to customers
under investment
contracts
Derivative financial            -           -
instruments
Loans and advances to banks     -       6,357
Loans and advances to          85       4,980
customers
Debt securities                 -       2,453
Equity shares                   3        (766)
Available for sale              -           -
financial investments
Reverse repurchase              -           -
agreements and cash
collateral on securities
borrowed
Other assets                    -        (896)
Insurance assets, including     -         254
unit-linked assets
Investments in associates      10          13
and joint ventures
Goodwill                        -         135
Intangible assets               -          62
Property, plant and             -         362
equipment
Prepayments and accrued         -           -
income
Deferred tax assets             -       1,383
Retail life-fund assets         -           -
attributable to
policyholders
------------------        -------    --------
Total assets                   98      14,337
------------------        -------    --------



BARCLAYS PLC

Analysis of remeasure column in balance sheet - liabilities as at 30th June 2004.

                                          As at 30th June 2004
                       ---------------------------------------------------------------------------
                       Consoli   Life   Good   Share   Pensions   Intangible  Finan  Leas     Divi
                        dation  assur   will   based                  assets   cial   ing    dends
                                 ance            pay                         guaran
                                               ments                           tees
Notes                      (a)    (b)    (d)     (e)        (f)          (g)    (h)    (i)     (j)
LIABILITIES                 £m     £m     £m      £m         £m           £m     £m     £m      £m
------------------       ------- ------ ------  ------     ------       ------ ------ ------  ------
Deposits from banks          -      -      -       -          -            -      -      -       -
Items in the course of       -      -      -       -          -            -      -      -       -
collection due to other
banks
Customer
accounts                   (82)    48      -       -          -            -      -      -       -
Trading portfolio            -      -      -       -          -            -      -      -       -
liabilities
Liabilities to               -      -      -       -          -            -      -      -       -
customers under
investment contracts
Derivative financial         -      -      -       -          -            -      -      -       -
instruments
Debt
securities in
issue                   14,151      -      -       -          -            -      -      -       -
Repurchase agreements        -      -      -       -          -            -      -      -       -
and cash collateral on
securities lent
Other
liabilities               (160)    25      -     (17)         -            -    201     23       -
Accruals and deferred        -      -      -       -          -            -      -      -       -
income
Current tax
liabilities                  -     17      -       -          -            -      -      -       -
Insurance
contract
liabilities
including
unit
-linked
liabilities                 39     (6)     -       -          -            -      -      -       -
Subordinated
liabilities:
- Undated loan               -      -      -       -          -            -      -      -       -
capital-non
convertible
- Dated loan                 -      -      -       -          -            -      -      -       -
capital-convertible to
preference shares
- Dated loan                 -      -      -       -          -            -      -      -       -
capital-non
convertible
Deferred tax
liabilities                566     38      -       -          -           15      -      -       -
Other
provisions for
liabilities                  -      -      -       -       (149)           -      -      -       -
Dividend                     -      -      -       -          -            -      -      -    (529)
Retirement
benefit
liabilities                  -      -      -       -      2,028            -      -      -       -
Retail-life fund             -      -      -       -          -            -      -      -       -
liabilities to           
policyholders
------------------       ------- ------ ------  ------     ------       ------ ------ ------  ------
Total
liabilities             14,514    122      -     (17)     1,879           15    201     23    (529)
------------------       ------- ------ ------  ------     ------       ------ ------ ------  ------

                          As at 30th June 2004
                           ------------------
                            Other       Total
                                    remeasure
Notes
LIABILITIES                    £m          £m
------------------        -------   ---------
Deposits from banks             -           -
Items in the course of          -           -
collection due to other
banks
Customer accounts               -         (34)
Trading portfolio               -           -
liabilities
Liabilities to customers        -           -
under investment
contracts
Derivative financial            -           -
instruments
Debt securities in issue        -      14,151
Repurchase agreements and       -           -
cash collateral on
securities lent
Other liabilities               -          72
Accruals and deferred           -           -
income
Current tax liabilities         -          17
Insurance contract
liabilities including           -          33
unit-linked liabilities
Subordinated liabilities:
- Undated loan capital-non      -           -
convertible
- Dated loan                    -           -
capital-convertible to
preference shares
- Dated loan capital-non        -           -
convertible
Deferred tax liabilities        -         619
Other provisions for           85         (64)
liabilities
Dividend                        -        (529)
Retirement benefit              -       2,028
liabilities
Retail-life fund                -           -
liabilities to
policyholders
------------------        -------   ---------
Total liabilities              85      16,293
------------------        -------   ---------



BARCLAYS PLC

Analysis of remeasure column in balance sheet - shareholders' equity as at 30th June 2004.

                                          As at 30th June 2004
                       ---------------------------------------------------------------------------
                       Consoli   Life   Good   Share   Pensions   Intangible  Finan   Leas    Divi
                        dation  assur   will   based                  assets   cial    ing   dends
                                 ance            pay                         guaran
                                               ments                           tees
Notes                      (a)    (b)    (d)     (e)        (f)          (g)    (h)    (i)     (j)
SHAREHOLDERS' EQUITY        £m     £m     £m      £m         £m           £m     £m     £m      £m
------------------       ------- ------ ------  ------     ------       ------ ------ ------  ------
Called up share              -      -      -       -          -            -      -      -       -
capital
Share premium account        -      -      -       -          -            -      -      -       -
Less: Treasury shares        -      -      -       -          -            -      -      -       -
Available for sale           -      -      -       -          -            -      -      -       -
reserve
Revaluation reserve          -      -      -       -          -            -      -      -       -
Cashflow hedging             -      -      -       -          -            -      -      -       -
reserve
Capital redemption           -      -      -       -          -            -      -      -       -
reserve
Other capital reserve        -      -      -       -          -            -      -      -       -
Translation reserve          -      -      -       -          -            -      -      -       -
Retained
earnings                  (164)  (539)   151      11     (1,761)          26    (30)  (192)    529
------------------       ------- ------ ------  ------     ------       ------ ------ ------  ------
Shareholders'
equity
excluding
minority
interest                  (164)  (539)   151      11     (1,761)          26    (30)  (192)    529
------------------       ------- ------ ------  ------     ------       ------ ------ ------  ------
Minority interest            -      -      -       -          -            -      -      -       -
------------------       ------- ------ ------  ------     ------       ------ ------ ------  ------
Total
shareholders'
equity                    (164)  (539)   151      11     (1,761)          26    (30)  (192)    529
------------------       ------- ------ ------  ------     ------       ------ ------ ------  ------
Total
liabilities
and
shareholders'
equity                  14,350   (417)   151      (6)       118           41    171   (169)      -
------------------       ------- ------ ------  ------     ------       ------ ------ ------  ------

                          As at 30th June 2004
                           ------------------
                            Other       Total
                                    remeasure
Notes
SHAREHOLDERS' EQUITY           £m          £m
------------------         ------   ---------
Called up share capital         -           -
Share premium account           -           -
Less: Treasury shares           -           -
Available for sale              -           -
reserve
Revaluation reserve             -           -
Cashflow hedging reserve        -           -
Capital redemption              -           -
reserve
Other capital reserve           -           -
Translation reserve             -           -
Retained earnings              13      (1,956)
------------------         ------   ---------
Shareholders' equity           13      (1,956)
excluding minority interest
------------------         ------   ---------
Minority interest               -           -
------------------         ------   ---------
Total shareholders' equity     13      (1,956)
------------------         ------   ---------
Total liabilities and          98      14,337
shareholders' equity
------------------         ------   ---------







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