HSBC 2005 Annual Report Download - page 376

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
374
Key impact analysis of adopting IAS 32 and IAS 39 on HSBC Holdings’ opening balance sheet as at
1 January 2005
Reconciliation of previously reported shareholders’ funds under UK GAAP to total shareholders’ equity under
IFRSs at 1 January 2005
At
1 January
2005
US$m
Shareholders’ funds as previously reported under UK GAAP ................................................................................. 86,623
Non IAS 32, and IAS 39 adjustments ...................................................................................................................... (36,514)
Total shareholders’ equity under IFRSs excluding IAS 32 and IAS 39 ................................................................... 50,109
IAS 32 and IAS 39 adjustments
Investment securities ............................................................................................................................................... 464
Fair value option ..................................................................................................................................................... (317)
Total shareholders’ equity under IFRSs .................................................................................................................. 50,256
For an explanation of the items included in the above reconciliation, see Note (e).
Reconciliation of HSBC Holdings’ balance sheets at 31 December 2004 and 1 January 2005
Adjustments to HSBC Holdings’ balance sheet under IFRSs at 31 December 2004 to incorporate its accounting
policies under IFRSs at 1 January 2005 are set out below:
IFRSs at Effect of adopting IAS 32 and IAS 39 IFRSs at
31 December
2004
Investment
securities
Fair
value
Reclassifi-
cations Total
1 January
2005
US$m US$m US$m US$m US$m US$m
ASSETS
Cash at bank and in hand:
– balances with HSBC undertakings ..... 246 – – – – 246
Derivatives ................................................ 1,643 – 4911– 491 2,134
Loans and advances to HSBC
undertakings .......................................... 16,636 – – – – 16,636
Financial investments ................................ 1,885 1,244 – 1,728 2,972 4,857
Investment in subsidiaries ......................... 55,668 – – (1,728) (1,728) 53,940
Property, plant and equipment ................... 2 – – – – 2
Other assets ............................................... 632 (581) – – (581) 51
Prepayments and accrued income .............. 5 – – – – 5
Total assets ................................................ 76,717 663 491 – 1,154 77,871
LIABILITIES AND EQUITY
Liabilities
Amounts owed to HSBC undertakings....... 7,352 – – – – 7,352
Derivatives ................................................ 10 – 721–7282
Other liabilities .......................................... 1,198 – – – – 1,198
Accruals and deferred income ................... 172 – – – – 172
Deferred taxation ....................................... 64 199 (136) – 63 127
Financial liabilities designated at
fair value ............................................... – – 13,9082– 13,908 13,908
Subordinated liabilities .............................. 17,812 – (13,036)2– (13,036) 4,776
Total liabilities .......................................... 26,608 199 808 – 1,007 27,615
Equity
Called up share capital .............................. 5,587 – – – – 5,587
Share premium account ............................. 4,881 – – – – 4,881
Merger reserve and other reserves ............. 28,942 – – – – 28,942
Other reserves ........................................... 1,740 464 – – 464 2,204
Retained earnings ...................................... 8,959 – (317) – (317) 8,642
Total equity ............................................... 50,109 464 (317) – 147 50,256
Total equity and liabilities ......................... 76,717 663 491 – 1,154 77,871
1Derivatives and hedge accounting.
2Fair value option.