Financial statements
Notes to the financial statements
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5 Carried interest
| 2007 £m |
2006 £m |
|
|---|---|---|
| Carried interest receivable from managed funds | 81 | 79 |
| Carried interest payable to executives | (142) | (64) |
| (61) | 15 |
Carried interest receivable represents the Group's share of profits from managed funds. Each managed fund is reviewed at the balance sheet date and income is accrued based on fund profits in excess of the performance conditions within the fund, taking into account cash already returned to fund investors and the fair value of assets remaining in the fund.
Carried interest payable represents the amount payable to executives from the Group's carried interest schemes. As with carried interest receivable, each scheme is separately reviewed at the balance sheet date, and an accrual made equal to the executives' share of profits in excess of the performance conditions in place in the scheme.