HSBC 2003 Annual Report Download - page 273

271
21 Interests in joint ventures
2003
US$m
At 1 January 2003 .............................................................................................................................................................. 190
Amortisation and impairment of goodwill .......................................................................................................................... (135
)
Transfer to subsidiaries ....................................................................................................................................................... (47
)
Retained profits and losses ................................................................................................................................................. 18
Exchange and other movements ......................................................................................................................................... (16
)
At 31 December 2003 ....................................................................................................................................................... 10
(a) 2003 2002
US$m US$m
Shares in non-banks ..................................................................................................................... 10 190
All shares are unlisted.
(b) HSBC’ s joint venture at 31 December 2003 is:
Country of
incorporation
Principal
activity
HSBC’s
interest in
equity capital
Issued
equity
capital
Framlington Group Limited........................................... England
Asset
management 51% £3m
Framlington Group Limited is owned by a subsidiary of HSBC Holdings and makes its financial statements up
to 31 December. Its principal country of operation is England.
Although HSBC owns more than 50 per cent of the equity capital of Framlington Group Limited, the agreement
with another shareholder means that there are severe long-term restrictions which substantially hinder HSBC’ s
rights over the assets and management of the entity. HSBC does however continue to exercise significant
influence and together with the other shareholder controls the entity.
(c) HSBC’ s share of total operating income in the joint venture is US$36 million (2002: US$19 million).
(d) Included within the Group’ s share of the joint venture’s gross assets is goodwill of US$171 million which has
been fully written off as at 31 December 2003 (2002: net book value US$149 million).
22 Interests in associates
2003
US$m
At 1 January 2003 .............................................................................................................................................................. 1,116
Additions ............................................................................................................................................................................ 44
Acquisitions of subsidiaries ................................................................................................................................................ 10
Disposals ............................................................................................................................................................................ (1
)
Retained profits and losses (Note 36) ................................................................................................................................. 80
Exchange and other movements ......................................................................................................................................... 14
At 31 December 2003 ....................................................................................................................................................... 1,263