HSBC 2007 Annual Report Download - page 414

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
Note 23
412
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 2007 ............................................... 5,331 1,936 2,574 9,702 5,923 25,466
Additions at cost4 ................................................ 684 78 397 1,429 132 2,720
Acquisition of subsidiaries ................................. 93 – – – – 93
Fair value adjustments ........................................ 25 21 106 – – 152
Disposals ............................................................. (256) (37) (117) (542) (129) (1,081)
Reclassified as held for sale ............................... (446) (596) (82) (160) – (1,284)
Transfers ............................................................. – (5) 5 – – –
Exchange differences .......................................... 237 1 49 450 128 865
Other changes ..................................................... (967) 40 (76) 78 – (925)
At 31 December 2007 ......................................... 4,701 1,438 2,856 10,957 6,054 26,006
Accumulated depreciation and impairment
At 1 January 2007 ............................................... (342) (168) (723) (5,974) (1,835) (9,042)
Depreciation charge for the year ........................ (93) (37) (167) (1,192) (205) (1,694)
Disposals ............................................................. 41 7 95 469 115 727
Reclassified as held for sale ............................... 73 23 3 67 – 166
Transfers ............................................................. – – – – – –
Impairment losses recognised ............................. (26) – (5) (3) – (34)
Impairment losses reversed ................................ 14 – – – – 14
Exchange differences .......................................... (18) (1) (19) (282) (38) (358)
Other changes ..................................................... 7 1 (10) (88) (1) (91)
At 31 December 2007 ......................................... (344) (175) (826) (7,003) (1,964) (10,312)
Net carrying amount at 31 December 2007 ........ 4,357 1,263 2,030 3,954 4,090 15,694
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 and impairment
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
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$13 million (2006: US$11 million).
2 Including assets held on finance leases with a net book value of US$397 million (2006: US$450 million).
3 Including assets with a net book value of US$422 million (2006: US$425 million) pledged as security for liabilities.
4 At 31 December 2007, HSBC had US$1,011 million (2006: US$1,380 million) of contractual commitments to acquire property, plant
and equipment.