HSBC 2015 Annual Report Download - page 419

HSBC HOLDINGS PLC
417
Strategic Report Financial Review Corporate Governance Financial Statements Shareholder Information
The major classes of assets and associated liabilities of disposal groups held for sale are as follows:
Brazil Other Total
$m $m $m
Assets of disposal groups held for sale
Trading assets 55
–
55
Fair value of financial assets designated at fair value 3,123
–
3,123
Loans and advances to banks 4,068
–
4,068
Loans and advances to customers 17,001 40 17,041
Reverse repurchase agreements 3,511
–
3,511
Financial investments 6,238
–
6,238
Goodwill and intangible assets 1,680
–
1,680
Deferred tax asset1 1,325
–
1,325
Prepayments, accrued income and other assets 4,674
–
4,674
Total assets at 31 December 2015 41,675 40 41,715
Liabilities of disposal groups held for sale
Deposits by banks 1,521
–
1,521
Customer accounts 15,094 1,588 16,682
Debt securities in issue 7,957
–
7,957
Liabilities under insurance contracts 3,338
–
3,338
Accruals, deferred income and other liabilities 7,335 7 7,342
Total liabilities at 31 December 2015 35,245 1,595 36,840
Expected date of completion First Half of 2016 First Half of 2016
Operating segment Latin America North America
Fair value of selected financial instruments which are not carried
at fair value on the balance sheet at 31 December 2015
Loans and advances to banks and customers 20,912 40 20,952
Customer accounts 15,094 1,588 16,682
1 The recognition of deferred tax assets relies on an assessment of the probability and sufficiency of future taxable profits and future reversals of
existing taxable temporary differences. In recognising the deferred tax asset management has critically assessed all available information, including
sufficiency of future taxable profits using internal and external benchmarks, and historical performance.
24 Trading liabilities
Accounting policy
Financial liabilities are classified as held for trading if they have been acquired or incurred principally for the purpose of selling or
repurchasing in the near term, or form part of a portfolio of identified financial instruments that are managed together and for which there
is evidence of a recent pattern of short-term profit-taking. They are recognised on trade date, when HSBC enters into contractual
arrangements with counterparties, and are normally derecognised when extinguished. They are initially measured at fair value, with
transaction costs taken to the income statement. Subsequent changes in fair value and interest are recognised in the income statement in
‘Net trading income’.
Liabilities arising from the sale of borrowed securities are classified as held for trading.
Trading liabilities
2015
$m
2014
$m
Deposits by banks1 27,054 41,453
Customer accounts1,2 40,208 50,600
Other debt securities in issue (Note 26)330,525 33,602
Other liabilities
–
net short positions in securities 43,827 64,917
At 31 December 141,614 190,572
1 ‘Deposits by banks’ and ‘Customer accounts’ include repos, settlement accounts, stock lending and other amounts.
2 Structured deposits placed at HSBC Bank USA and HSBC Trust Company (Delaware) National Association are insured by the Federal Deposit Insurance
Corporation, a US government agency, up to $250,000 per depositor.
3 ‘Other debt securities in issue’ comprises structured notes issued by HSBC for which market risks are actively managed as part of trading portfolios.
At 31 December 2015, the cumulative amount of change in fair value attributable to changes in HSBC’s credit risk was a gain of
$122m (2014: loss of $79m).