HSBC 2002 Annual Report Download - page 213

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7 Profit on ordinary activities before tax
Profit on ordinary activities before tax is stated after:
2002 2001 2000
US$m US$m US$m
(a) Income
Aggregate rentals receivable, including capital repayments,
under
– finance leases and hire purchase contracts............................ 2,502 3,458 2,956
– operating leases..................................................................... 490 465 481
Income from listed investments............................................... 4,361 4,761 4,534
Profits less losses on debt securities and equities dealing 19 348 456
Gains on disposal of investment securities .............................. 405 475 324
(b) Charges
Charges incurred with respect to subordinated liabilities ........ 862 1,074 1,216
Finance charges in respect of finance leases and similar hire
purchase contracts ................................................................ 36 27 26
Hire of plant and machinery..................................................... 81 90 92
Rentals payable on premises held under operating leases........ 548 516 467
Gains on the disposal of investments and tangible fixed assets attracted a tax charge of US$86million (2001:
US$114million; 2000: US$82 million). Of the after-tax amount, US$23 million (2001: US$18 million; 2000: US$11
million) is attributable to minority interests.
8 Tax on profit on ordinary activities
The charge for taxation comprises:
2002 2001* 2000*
US$m US$m US$m
United Kingdom corporation tax charge – current year.................. 899 1,217 1,865
United Kingdom corporation tax charge – adjustment in respect of
prior years.................................................................................... (68) (261) (39)
Relief for overseas taxation............................................................. (147) (540) (970)
684 416 856
Overseas taxation – current year .................................................... 1,246 1,638 1,477
Overseas taxation – adjustment in respect of prior years ................ (29) (68) (9)
Joint ventures.................................................................................. (6) (13) (7)
Associates ....................................................................................... 17 26 (1)
Current taxation .............................................................................. 1,912 1,999 2,316
Origination and reversal of timing differences........................... 615 (176) 89
Effect of decreased tax rate on opening asset.............................
–
34
Adjustment in respect of previous periods................................. 7162
–
Deferred taxation ............................................................................ 622 (11) 93
Total charge for taxation 2,534 1,988 2,409
*The figures for 2001 and 2000 have been restated to reflect the adoption of UK Financial Reporting Standard 19 “Deferred Tax”
details of which are set out in Note 1 on the Financial Statements on pages 195 to 197 .