HSBC 2002 Annual Report Download - page 245

243
32 Provisions for liabilities and charges
(a) Deferred taxation
H
SB
C
H
SB
C
Holdings
US$m US$m
At 1 January 2002............................................................................................. (58) 98
Charge/(release) to profit and loss account (Note 8)......................................... 622 (5)
Movements arising from acquisitions and disposals......................................... (575)
–
Exchange and other movements ....................................................................... 30
–
At 31 December 2002...................................................................................... 19 93
HSBC HSBC Holdings
2002 2001* 2002 2001*
US$m US$m US$m US$m
Included in ‘Provisions for liabilities and
charges’ ................................................... 1,154 1,057 93 98
Included in ‘Other assets’ (Note 27) ........... (1,135) (1,115)
–
–
Net deferred taxation provision .................. 19 (58) 93 98
Comprising:
Accelerated capital allowances ................... 115 138
–
–
Timing differences on lease income ........... 1,243 1,010
–
–
Provision for bad and doubtful debts .......... (1,192) (724)
–
–
Relief for losses brought forward................ (179) (164)
–
–
Provision for Princeton Note settlement ..... –(221)
–
–
Other short term timing differences ............ 32 (97) 93 98
19 (58) 93 98
* Figures for 2001 have been restated to reflect the adoption of UK Financial Reporting Standard 19 ‘Deferred Tax’, details of
which are set out in Note 1 on the Financial Statements on pages 195 to 197.
There is no material deferred taxation liability not provided for.
(i) At 31 December 2002, there were potential future tax benefits of approximately US$885 million (2001:
US$906 million) in respect of trading losses, allowable expenditure charged to the profit and loss account
but not yet allowed for tax and capital losses which have not been recognised because recoverability of the
potential benefits is not considered likely.