HSBC 2012 Annual Report Download - page 470

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
24 – Property, plant and equipment / 25 – Investments in subsidiaries
468
Leasehold land and buildings
2012 2011
Cost
Accumulated
depreciation Cost
Accumulated
depreciation
US$m US$m US$m US$m
At 1 January .................................................................................. 1,669 (751) 1,944 (933)
Additions ...................................................................................... 119 – 171 –
Disposals ....................................................................................... (65) 47 (269) 262
Depreciation charge for the year .................................................. – (133) – (139)
Impairment loss recognised .......................................................... – (6) – (15)
Exchange differences .................................................................... 28 (13) (13) 2
Reclassified as held for sale ......................................................... (10) (1) (154) 73
Other changes ............................................................................... (23) (9) (10) (1)
At 31 December ............................................................................ 1,718 (866) 1,669 (751)
Net carrying amount at 31 December ........................................... 852 918
Investment properties
Movement on the fair value of investment properties
Freehold
land and
buildings
Long
leasehold
land and
buildings
Short
leasehold
land and
buildings Total
US$m US$m US$m US$m
Fair value
At 1 January 2012 ......................................................................... 745 192 402 1,339
Additions at cost ........................................................................... 9 – – 9
Fair value adjustments .................................................................. (35) 31 76 72
Reclassified to held for sale .......................................................... – (29) – (29)
Exchange differences .................................................................... (64) – 1 (63)
Other changes ............................................................................... (3) 1 8 6
p
At 31 December 2012 ................................................................... 652 195 487 1,334
Fair value
At 1 January 2011 ......................................................................... 667 156 310 1,133
Additions at cost ........................................................................... 242 – – 242
Fair value adjustments .................................................................. (15) 44 89 118
Disposals ....................................................................................... (47) (17) – (64)
Exchange differences .................................................................... (22) 1 1 (20)
Other changes ............................................................................... (80) 8 2 (70)
At 31 December 2011 ................................................................... 745 192 402 1,339
Investment properties are valued on a market value basis as at 31 December each year by independent professional
valuers who have recent experience in the location and type of properties. Investment properties in Hong Kong, the
Macau Special Administrative Region and mainland China, which represent more than 51% by value of HSBC’s
investment properties subject to revaluation, were valued by DTZ Debenham Tie Leung Limited whose valuers are
members of the Hong Kong Institute of Surveyors. Properties in other countries, which represent 49% by value of
HSBC’s investment properties, were valued by different independent professionally qualified valuers.
HSBC Holdings had no investment properties at 31 December 2012 or 2011.
HSBC properties leased to customers
HSBC properties leased to customers included US$694m at 31 December 2012 (2011: US$618m) let under operating
leases, net of accumulated depreciation of US$16m (2011: US$12m). None was held by HSBC Holdings.
At 31 December 2012, the classification of land and buildings in Hong Kong in accordance with Hong Kong
Companies Ordinance requirements was freehold nil (2011: nil), long leasehold US$1,319m (2011: US$1,363m),
medium leasehold US$1,600m (2011: US$1,484m) and short leasehold US$3m (2011: US$4m).