HSBC 2006 Annual Report Download - page 364

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
Notes 20 and 21
362
Summarised aggregate financial information on joint ventures
2006 2005
US$m US$m
HSBC’s share of:
– current assets .............................................................................................................................. 125 95
– non-current assets ....................................................................................................................... 107 55
– current liabilities ......................................................................................................................... 98 34
– non-current liabilities ................................................................................................................. 87 107
– income ........................................................................................................................................ 102 118
– expenses ...................................................................................................................................... 79 20
21 Goodwill and intangible assets
Goodwill and intangible assets includes goodwill arising on business combinations, the present value of in-force
long-term insurance business, and other intangible assets.
Goodwill
Europe Hong Kong
Rest of
Asia-
Pacific
North
America
Latin
America Total
US$m US$m US$m US$m US$m US$m
Cost
At 1 January 2006 ....................................... 13,777 120 270 12,424 2,634 29,225
Additions .................................................... 29 – 34 55 1,608 1,726
Exchange differences .................................. 1,428 4 25 – 20 1,477
Other changes ............................................. – – (4) 48 – 44
At 31 December 2006 ................................. 15,234 124 325 12,527 4,262 32,472
Cost (restated1)
At 1 January 2005 ....................................... 15,873 120 284
11,594 2,491 30,362
Additions .................................................... 108 1 4
534 13 660
Disposals ..................................................... (70) – – (3)
–
(73)
Exchange differences .................................. (2,137) (1) (17) 328 185 (1,642)
Other changes ............................................. 3 – (1) (29) (55) (82)
At 31 December 2005 ................................. 13,777 120 270
12,424 2,634 29,225
1 In 2006, Mexico and Panama were reclassified from the North America segment to the Latin America segment. Comparative
information has been restated accordingly. See Note 13.
The addition to goodwill in Latin America related principally to the acquisition of Grupo Banistmo, S.A. on
23 November 2006.
The present value of in-force long-term insurance business (‘PVIF’)
Movement on the PVIF
2006 2005
US$m US$m
At 1 January ....................................................................................................................................... 1,400 1,877
IFRSs transition adjustment at 1 January 20051 ................................................................................ – (384)
Addition from current year new business ......................................................................................... 254 289
Movement from in-force business ..................................................................................................... (203) (268)
Exchange differences and other movements ..................................................................................... 98 (114)
At 31 December ................................................................................................................................. 1,549 1,400
1 For an explanation of the IFRSs transition adjustment at 1 January 2005, see Note 46 on the Financial Statements in the Annual Report
and Accounts 2005.