HSBC 2006 Annual Report Download - page 368

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
Note 23
366
23 Property, plant and equipment
HSBC
Property, plant and equipment
Freehold
land and
buildings
Long
leasehold
land and
buildings
Short
leasehold
land and
buildings1
Equipment,
fixtures
and fittings2
Equipment
on
operating
leases Total3
US$m US$m US$m US$m US$m US$m
Cost or fair value
At 1 January 2006 ............................................... 4,828 2,235 2,265 8,639 4,964 22,931
Additions at cost4 ................................................ 376 24 253 1,473 274 2,400
Acquisition of subsidiaries ................................. 189 – 17 55 1 262
Fair value adjustments ........................................ 64 77 23 – – 164
Disposals ............................................................. (407) (421) (66) (972) (28) (1,894)
Transfers ............................................................. – (38) 38 – – –
Exchange differences .......................................... 287 102 65 633 474 1,561
Other changes ..................................................... (6) (43) (21) (126) 238 42
At 31 December 2006 ......................................... 5,331 1,936 2,574 9,702 5,923 25,466
Accumulated depreciation
At 1 January 2006 ............................................... (252) (132) (604) (5,418) (1,319) (7,725)
Depreciation charge for the year ........................ (85) (46) (131) (1,075) (177) (1,514)
Disposals ............................................................. 30 2 59 915 89 1,095
Transfers ............................................................. – 1 (1) – – –
Exchange differences .......................................... (28) (8) (40) (401) (190) (667)
Other changes ..................................................... (7) 15 (6) 5 (238) (231)
At 31 December 2006 ......................................... (342) (168) (723) (5,974) (1,835) (9,042)
Net carrying amount at 31 December 2006 ........ 4,989 1,768 1,851 3,728 4,088 16,424
Cost or fair value
At 1 January 2005 ............................................... 4,384 2,153 2,252 8,722 6,117 23,628
Additions at cost4 ................................................ 601 142 124 1,269 751 2,887
Acquisition of subsidiaries ................................. 10 – 5 14 – 29
Fair value adjustments ........................................ 48 95 58 – – 201
Disposals ............................................................. (224) (87) (77) (542) (359) (1,289)
Transfers ............................................................. 30 – (30) – – –
Exchange differences .......................................... (245) (82) (55) (445) (660) (1,487)
Other changes ..................................................... 224 14 (12) (379) (885) (1,038)
At 31 December 2005 ......................................... 4,828 2,235 2,265 8,639 4,964 22,931
Accumulated depreciation
At 1 January 2005 ............................................... (204) (74) (590) (5,375) (1,761) (8,004)
Depreciation charge for the year ........................ (76) (55) (101) (1,082) (318) (1,632)
Disposals ............................................................. 6 – 51 431 243 731
Exchange differences .......................................... 18 5 35 285 182 525
Other changes ..................................................... 4 (8) 1 323 335 655
At 31 December 2005 ......................................... (252) (132) (604) (5,418) (1,319) (7,725)
Net carrying amount at 31 December 2005 ........ 4,576 2,103 1,661 3,221 3,645 15,206
Leasehold land and buildings are considered to be held under finance lease contracts where the value of the land cannot reliably be
separated from the value of the lease, and the respective contracts do not meet the criteria for classification as operating leases.
1 Including assets held on finance leases with a net book value of US$11 million (2005: US$7 million).
2 Including assets held on finance leases with a net book value of US$450 million (2005: US$327 million).
3 Including assets with a net book value of US$425 million (2005: US$13 million) pledged as security for liabilities.
4 At 31 December 2006, HSBC had US$1,380 million (2005: US$1,256 million) of contractual commitments to acquire property,
plant and equipment.