HSBC 2012 Annual Report Download - page 449

447
Overview
Operating & Financial Review
Corporate Governance
Financial Statements
Shareholder Information
Movement in Level 3 financial instruments available for sale
2012 2011
US$m US$m
At 1 January .............................................................................................................................................. 1,078 2,025
Total gains or losses:
– recognised in profit or loss ................................................................................................................... – 55
– recognised in other comprehensive income ......................................................................................... 130 (61)
Settlements ................................................................................................................................................ – (941)
Transfers out ............................................................................................................................................. (1,208) –
At 31 December ........................................................................................................................................ – 1,078
Total gains or losses recognised in profit or loss relating to those assets and liabilities
held on 31 December ............................................................................................................................ – 18
In certain circumstances, the fair value of financial instruments are measured using valuation models that incorporate
assumptions that are not supported by prices from observable current market transactions in the same instrument and
are not based on observable market data. The following table shows the sensitivity of non-derivative financial
instruments to reasonably possible alternative assumptions:
Effect of changes in significant unobservable assumptions to reasonably possible alternatives
Reflected in equity
Favourable
changes
Unfavourable
changes
US$m US$m
Financial investments: available for sale
At 31 December 2012 .............................................................................................................................. – –
At 31 December 2011 ............................................................................................................................... 69 (77)
16 Fair values of financial instruments not carried at fair value
The classification of financial instruments is determined in accordance with the accounting policies set out in Note 2.
Fair values of financial instruments which are not carried at fair value on the balance sheet
At 31 December 2012 At 31 December 2011
Carrying
amount
Fair
value
Carrying
amount
Fair
value
US$m US$m US$m US$m
Assets and liabilities not held for sale
Assets
Loans and advances to banks ............................................................... 152,546 152,823 180,987 181,302
Loans and advances to customers ........................................................ 997,623 973,741 940,429 914,485
Financial investments: debt securities .................................................. 23,413 25,458 21,018 22,500
Financial investments: treasury and other eligible bills ....................... – – 181 181
Liabilities
Deposits by banks ................................................................................. 107,429 107,392 112,822 112,848
Customer accounts ............................................................................... 1,340,014 1,340,521 1,253,925 1,254,313
Debt securities in issue ......................................................................... 119,461 120,779 131,013 130,914
Subordinated liabilities ......................................................................... 29,479 32,159 30,606 29,351
Loans and advances and customer accounts held for sale
Loans and advances to banks and customers ....................................... 6,632 6,387 35,720 37,832
Customer accounts ............................................................................... 2,990 2,990 20,138 19,130
1 Including financial instruments within disposal groups held for sale.