HSBC 2002 Annual Report Download - page 229

227
Investment securities:
Cos
t
Provisions Book value
US$m US$m US$m
At 1 January 2002 ........................................................................... 4,959 (204) 4,755
Additions......................................................................................... 1,753
–
1,753
Acquisition of subsidiaries.............................................................. 7
–
7
Disposals......................................................................................... (1,791) 17 (1,774)
Provisions made..............................................................................
–
(155) (155)
Provisions written off...................................................................... (24) 24
–
Exchange and other movements...................................................... 304 (57) 247
At 31 December 2002.................................................................... 5,208 (375) 4,833
The following table provides an analysis of gross unrealised gains and losses as at 31 December for the past three
years:
Carryin
g
value
Gross
Unrealise
d
gains
Gross
unrealise
d
losses
M
arke
t
valuation
US$m US$m US$m US$m
31 December 2002 ............................................ 4,833 603 (197) 5,239
31 December 2001 ............................................ 4,755 669 (130) 5,294
31 December 2000 ............................................. 4,638 1,183 (48) 5,773
Proceeds from the sale of investment securities were US$1,980 million (2001: US$1,796 million; 2000: US$1,259
million). Gross realised gains of US$215 million (2001: US$290 million; 2000: US$225 million) and gross realised
losses of US$9 million (2001: US$25 million; 2000: US$20 million) were recorded on those sales. Realised gains
and losses are computed using the weighted average cost method. There were no gains recorded on securities
transferred from the investment book to the trading book.
The cost of investment securities purchased during the year ended 31 December 2002 was US$1,753 million (2001:
US$1,670 million; 2000: US$1,822 million).
21 Interests in joint ventures
2002
US$m
At 1 January 2002 ................................................................................................................................ 292
Additions and acquisitions of subsidiaries........................................................................................... 67
Amortisation of goodwill..................................................................................................................... (9)
Disposals.............................................................................................................................................. (111)
Transfer to subsidiaries ........................................................................................................................ (67)
Retained profits and losses................................................................................................................... (17)
Exchange and other movements........................................................................................................... 35
At 31 December 2002......................................................................................................................... 190