HSBC 2005 Annual Report Download - page 305

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(i) On 1 June 2005, HSBC Investments (USA) Inc., a wholly-owned subsidiary of HSBC, acquired Atlantic
Advisors LLC for a contingent consideration of US$9 million. Goodwill of US$9 million arose from this
acquisition.
(ii) On 6 June 2005, HSBC Financial Corporation Limited, a wholly owned subsidiary of HSBC, acquired the entire
share capital of Invis Incorporated for a consideration of US$13 million. Goodwill of US$4 million arose from
this acquisition.
(iii) On 31 August 2005, HSBC Bank (Panama) S.A., a wholly owned subsidiary of HSBC, acquired the entire share
capital of the Financomer Group for a cash consideration of US$21 million. Goodwill of US$13 million arose
from this acquisition.
(iv) On 31 August 2005, HSBC acquired a 70.1 per cent equity interest in Dar Es Salaam Investment Bank of Iraq
for a cash consideration of US$15 million. Goodwill of US$4 million arose from this acquisition.
(v) Increase in stake in an existing subsidiary is excluded from the table below. On 31 December 2005, HSBC
increased its stake in HSBC Trinkaus & Burkhardt KGaA by 4.42 per cent to 77.89 per cent for a cash
consideration of US$119 million. Goodwill of US$76 million arose on the acquisition.
The fair values of the assets, liabilities and contingent liabilities of the companies acquired during the year, which
relate principally to Metris, were as follows:
Fair
value
Carrying value
immediately
prior to
acquisition
US$m US$m
At date of acquisition
Cash and balances at central banks ............................................................................................... 61 61
Loans and advances to banks ......................................................................................................... 51 36
Loans and advances to customers .................................................................................................. 5,258 5,494
Debt securities ............................................................................................................................... 236 235
Intangible assets ............................................................................................................................. 271 –
Property, plant and equipment ....................................................................................................... 29 24
Other asset categories .................................................................................................................... 161 138
Customer accounts ........................................................................................................................ (47) (34)
Debt securities in issue .................................................................................................................. (4,610) (4,595)
Provisions for liabilities and charges ............................................................................................. (93) (93)
Other liability categories ................................................................................................................ (211) (195)
Less: minority interests .................................................................................................................. (4) –
Net assets acquired ........................................................................................................................ 1,102 1,071
Goodwill attributable:
Subsidiaries (Note 21) ............................................................................................................... 551
Total consideration including costs of acquisition ......................................................................... 1,653
In addition to the above, there were other minor acquisitions and increases in investment in subsidiaries which
increased goodwill by US$109 million.
25 Other assets
2005 2004
US$m US$m
Bullion ........................................................................................................................................... 2,358 3,180
Assets held for sale ........................................................................................................................ 959 988
Reinsurers’ share of liabilities under insurance contracts .............................................................. 1,545 –
Current taxation recoverable .......................................................................................................... 496 213
Deferred taxation (Note 30) ........................................................................................................... 2,665 3,260
Endorsements and acceptances ...................................................................................................... 7,973 –
Other accounts ............................................................................................................................... 10,600 15,436
26,596 23,077