HSBC 2006 Annual Report Download - page 420

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
Note 47
418
Reconciliation of net income and shareholders’ equity under IFRSs and US GAAP
The following tables summarise the significant adjustments to consolidated net income and shareholders’ equity
which would result from the application of US GAAP:
Year ended 31 December
2006 2005 2004
US$m US$m US$m
Net income
Profit attributable to shareholders of the parent company
of HSBC (IFRSs) ......................................................................................... 15,789 15,081 12,918
Shareholders’ interest in long-term insurance fund ........................................ (532) 88 (102)
Pension costs .................................................................................................... (209) (175) (125)
Stock-based compensation .............................................................................. 119 225 (83)
Intangible assets ............................................................................................... (264) (325) (323)
Purchase accounting adjustments .................................................................... (303) (520) (1,239)
Derivatives and hedge accounting ................................................................... 514 (2,144) 244
Foreign exchange differences on available-for-sale securities ....................... 1,203 2,235 1,069
Loan origination ............................................................................................... 156 249 143
Securitisations .................................................................................................. (57) (237) (33)
Loan impairment .............................................................................................. (36) 20 –
Interest recognition .......................................................................................... 2(131) –
Mortgage servicing rights ................................................................................ 14 – –
Unquoted equity securities .............................................................................. (45) – –
Unearned commission income ........................................................................ (291) – –
Other ................................................................................................................ 92 (44) 74
Taxation, including taxation on reconciling items .......................................... 81 578 (77)
Minority interest in reconciling items ............................................................. 125 (197) 40
Net income (US GAAP) .................................................................................. 16,358 14,703 12,506
Year ended 31 December
2006 2005 2004
US$ US$ US$
Per share amounts (US GAAP)
Basic earnings per ordinary share ................................................................... 1.45 1.33 1.15
Diluted earnings per ordinary share ................................................................ 1.44 1.32 1.13
At 31 December
2006 2005
US$m US$m
Shareholders’ equity
Total shareholders’ equity (IFRSs) ................................................................................................... 108,352 92,432
Shareholders’ interest in long-term insurance fund .......................................................................... (1,678) (1,077)
Pension costs ...................................................................................................................................... – 1,585
Unquoted equity shares ..................................................................................................................... (1,311) (597)
Goodwill ............................................................................................................................................ 1,246 1,048
Revaluation of property ..................................................................................................................... (1,490) (1,530)
Purchase accounting adjustments ...................................................................................................... 18 155
Intangible assets ................................................................................................................................. 1,845 2,127
Derivatives and hedge accounting ..................................................................................................... 1,129 (58)
Loan origination ................................................................................................................................. 916 717
Securitisations .................................................................................................................................... 101 158
Loan impairment ................................................................................................................................ (372) (327)
Interest recognition ............................................................................................................................ (257) (259)
Unearned commission income .......................................................................................................... (291) –
Mortgage servicing rights .................................................................................................................. 16 –
Other . ................................................................................................................................................. 79 112
Taxation including taxation on reconciling items ............................................................................. (51) (1,213)
Minority interest in reconciling items ............................................................................................... 288 251
Total shareholders’ equity (US GAAP) ............................................................................................ 108,540 93,524