HSBC 2015 Annual Report Download - page 373

HSBC HOLDINGS PLC
371
Strategic Report Financial Review Corporate Governance Financial Statements Shareholder Information
Movement of deferred tax assets and liabilities
Loan
impairment
provisions
Unused tax
losses and
tax credits
Derivatives,
FVOD1
and other
investments
Insurance
business
Expense
provisions Other Total
$m $m $m $m $m $m $m
Assets 2,264 1,332 1,764
–
1,244 836 7,440
Liabilities
–
–
(233) (861)
–
(759) (1,853)
At 1 January 2015 2,264 1,332 1,531 (861) 1,244 77 5,587
Income statement 45 379 (557) (143) 418 (116) 26
Other comprehensive income 22 156 321 499
Equity 4 4
Reclassification to Assets Held for Sale (673) (186) 76 87 (386) (136) (1,218)
Foreign exchange and other adjustments (285) (137) 98 (139) (161) 17 (607)
At 31 December 2015 1,351 1,388 1,170 (1,056) 1,271 167 4,291
Assets 1,351 1,388 1,400
–
1,271 1,050 6,4602
Liabilities
–
–
(230) (1,056)
–
(883) (2,169)2
Assets 2,837 978 1,383
–
1,398 1,748 8,344
Liabilities
–
–
(213) (840)
–
(745) (1,798)
At 1 January 2014 2,837 978 1,170 (840) 1,398 1,003 6,546
Income statement (408) 396 361 (76) (86) (212) (25)
Other comprehensive income
–
–
(12)
–
–
(680) (692)
Equity
–
–
–
–
–
(20) (20)
Foreign exchange and other adjustments (165) (42) 12 55 (68) (14) (222)
At 31 December 2014 2,264 1,332 1,531 (861) 1,244 77 5,587
Assets 2,264 1,332 1,764
–
1,244 836 7,4402
Liabilities
–
–
(233) (861)
–
(759) (1,853)2
1 Fair value of own debt.
2 After netting off balances within countries, the balances as disclosed in the accounts are as follows: deferred tax assets $6,051m (2014: $7,111m); and
deferred tax liabilities $1,760m (2014:$1,524m).
The net deferred tax asset of $4.3bn (2014: $5.6bn) includes $4.5bn (2014: $4.1bn) deferred tax assets relating to the US. In
applying judgement in recognising deferred tax assets, management has critically assessed all available information, including
future business profit projections and the track record of meeting forecasts. On the basis of this assessment, management
expects substantially all the US deferred tax assets to be utilised by 2021. The fall in net deferred tax assets since 31 December
2014 is mainly attributable to the reclassification of $1.2bn Brazilian net deferred tax balances to assets held for sale.
Unrecognised deferred tax
The amount of temporary differences, unused tax losses and tax credits for which no deferred tax asset is recognised in the
balance sheet was $15.5bn (2014: $22.6bn). These amounts included unused state losses arising in the Group’s US operations
of $11.3bn (2014: $14.1bn). Of the total amounts unrecognised, $3.1bn (2014: $4.2bn) had no expiry date, $0.9bn (2014:
$0.9bn) was scheduled to expire within 10 years and the remaining is expected to expire after 10 years.
Deferred tax is not recognised in respect of the Group’s investments in subsidiaries and branches where HSBC is able to control
the timing of remittance or other realisation and where remittance or realisation is not probable in the foreseeable future. The
aggregate temporary differences relating to unrecognised deferred tax liabilities arising on investments in subsidiaries and
branches is $9.1bn – the corresponding unrecognised deferred tax liability is $0.6bn.
9 Dividends
Dividends to shareholders of the parent company
2015 2014 2013
Per
share
$
Total
$m
Settled
in scrip
$m
Per
share
$
Total
$m
Settled
in scrip
$m
Per
share
$
Total
$m
Settled
in scrip
$m
Dividends paid on ordinary shares
In respect of previous year:
–
fourth interim dividend 0.20 3,845 2,011 0.19 3,582 1,827 0.18 3,339 540
In respect of current year:
–
first interim dividend 0.10 1,951 231 0.10 1,906 284 0.10 1,861 167
–
second interim dividend 0.10 1,956 160 0.10 1,914 372 0.10 1,864 952
–
third interim dividend 0.10 1,958 760 0.10 1,918 226 0.10 1,873 864
Total 0.50 9,710 3,162 0.49 9,320 2,709 0.48 8,937 2,523
Total dividends on preference shares classified
as equity (paid quarterly)
62.00 90 62.00 90 62.00 90