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HSBC BANK CANADA
108
24 Fair values of financial instruments (continued)
Fair values of financial instruments not carried at fair value (continued)
The fair values in this note are stated at a specific date and may be significantly different from the amounts which will
actually be paid on the maturity or settlement dates of the instruments. In many cases, it would not be possible to realize
immediately the estimated fair values given the size of the portfolios measured. Accordingly, these fair values do not
represent the value of these financial instruments to the bank as a going concern.
For all classes of financial instruments, fair value represents the product of the value of a single instrument, multiplied
by the number of instruments held.
The following table lists financial instruments whose carrying amount is a reasonable approximation of fair value
because, for example, they are short-term in nature or reprice to current market rates frequently:
Assets Liabilities
Cash and balances at central bank Items in the course of transmission to other banks
Items in the course of collection from other banks Acceptances
Customers’ liability under acceptances Short-term payables within ‘Other liabilities’
Short-term receivables within ‘Other assets’ Accruals
Accrued income
Fair values of financial instruments which are not carried at fair value on the statement of financial position are
as follows:
2013 2012
Carrying
amount
$m
Fair value
$m
Level 1
Quoted
market
price
$m
Level 2
using
observable
inputs
$m
Level 3
with
significant
unobserv-
able inputs
$m
Carrying
amount
$m Fair value
$m
Assets
Loans and advances
to banks ............. 1,482 1,482 – 1,482 – 1,480 1,480
Loans and advances
to customers ...... 46,351 46,420 – 5,828 40,592 45,572 45,782
Liabilities
Deposits by banks ... 1,205 1,205 – 1,205 – 2,173 2,173
Customer accounts .. 51,844 51,919 – 37,089 14,830 48,304 48,428
Debt securities in
issue ................... 11,348 11,498 – 11,498 – 11,980 12,203
Subordinated
liabilities ............ 239 236 – 236 – 324 299
Notes on the Consolidated Financial Statements (continued)