5th Jul 2005 09:05
HSBC Holdings PLC5 July 2005 Appendices________________________________________________________________________________ Appendix I Reconciliation of UK GAAP and IFRS numbers Consolidated income statement for the year ended 31 December 2004 Consolidated income statement for the half-year to 31 December 2004Consolidated income statement for the half-year to 30 June 2004 Consolidated balance sheet at 31 December 2004 Consolidated balance sheet at 30 June 2004 Consolidated balance sheet at 1 January 2004 (date of transition to IFRS) Appendix II Effect of IAS 1 'Presentation of Financial Statements' Consolidated income statement for the year ended 31 December 2004 Consolidated income statement for the half-year to 31 December 2004Consolidated income statement for the half-year to 30 June 2004 Consolidated balance sheet at 31 December 2004 Consolidated balance sheet at 30 June 2004 Consolidated balance sheet at 1 January 2004 (date of transition to IFRS) 2004 IFRS Comparative Financial Information(continued) Appendix I________________________________________________________________________________Consolidated income statement for the year ended 31 December 2004 Reconciliation of UK GAAP and IFRS Adjustments to conform HSBC's UK GAAP income statement for the year ended 31December 2004 to its accounting policies under IFRS are set out below: UK GAAP Retirement Goodwill Other Software Share- benefits amortisation goodwill capitalisation based under UK adjustments payments GAAP US$m US$m US$m US$m US$m US$m Interestreceivable 50,203 - - - - -Interestpayable (19,179) - - - - - --------- --------- --------- --------- --------- --------- Net interestincome 31,024 - - - - - Fees andcommissionsreceivable 15,877 - - - - -Fees andcommissionspayable (2,784) - - - - -Dealingprofits 2,566 - - - - -Dividendincome 601 - - - - -Net investment income onassets backingpolicyholderliabilities - - - - - -Net earned insurancepremiums - - - - - -Otheroperatingincome 3,303 - - - - - --------- --------- --------- --------- --------- --------- Operatingincome 50,587 - - - - - Administrativeexpenses (24,183) (170) - (39) 329 (152)Depreciationandamortisation (3,506) - 1,814 (57) (304) - --------- --------- --------- --------- --------- --------- Operatingprofit beforeprovisions 22,898 (170) 1,814 (96) 25 (152) Provision forbad anddoubtful debts (6,357) - - - - -Provision forcontingentliabilitiesandcommitments (27) - - - - -Net insurance claims - - - - - -Amounts written off fixed assetinvestments - - - - - - --------- --------- --------- --------- --------- ---------Operatingprofit 16,514 (170) 1,814 (96) 25 (152) Leases Insurance Consolidation Property Other IFRS US$m US$m US$m US$m US$m US$m Interestreceivable - 61 254 - (47) 50,471Interestpayable - 4 (245) - 48 (19,372) --------- --------- --------- --------- --------- --------- Net interestincome - 65 9 - 1 31,099 Fees andcommissionsreceivable - (3) (31) - (171) 15,672Fees andcommissionspayable - (356) (9) - 195 (2,954)Dealingprofits - - 73 - (20) 2,619Dividendincome - - 25 - (4) 622Net investmentincome onassets backingpolicyholderliabilities - 1,012 - - - 1,012Net earnedinsurancepremiums - 5,368 - - - 5,368Otheroperatingincome - (1,482) 21 90 (151) 1,781 --------- --------- --------- --------- --------- --------- Operatingincome - 4,604 88 90 (150) 55,219 Administrativeexpenses - (49) 15 (7) 32 (24,224)Depreciationandamortisation (90) - - 4 (86) (2,225) --------- --------- --------- --------- --------- --------- Operatingprofit beforeprovisions (90) 4,555 103 87 (204) 28,770 Provision forbad anddoubtful debts - - - - 162 (6,195)Provision forcontingentliabilitiesandcommitments - - - - (44) (71)Net insuranceclaims - (4,565) (70) - - (4,635)Amountswritten offfixed assetinvestments - - 4 - (2) 2 --------- --------- --------- --------- --------- --------- Operatingprofit (90) (10) 37 87 (88) 17,871 Consolidated income statement for the year ended 31 December 2004 (continued) Reconciliation of UK GAAP and IFRS UK Retirement Goodwill Other Software Share- GAAP benefits amortisation goodwill capitalisation Based under UK adjustments payments GAAP US$m US$m US$m US$m US$m US$m Operatingprofit 16,514 (170) 1,814 (96) 25 (152) Share ofprofit inassociatesand jointventures 292 - 4 2 - -Gains ondisposal offixedassetsandinvestments 802 - - (8) - - ------ ------ ------ ------ ------- ------ Profit onordinaryactivitiesbefore tax 17,608 (170) 1,818 (102) 25 (152) Tax on profiton ordinaryactivities (4,507) 39 - 57 (21) (12) ------ ------ ------ ------ ------- ------ Profit onordinaryactivitiesafter tax 13,101 (131) 1,818 (45) 4 (164) Minorityinterests (1,261) (3) - - - - ------ ------ ------ ------ ------- ------ Profitattributabletoshareholders 11,840 (134) 1,818 (45) 4 (164) ------ ------ ------ ------ ------- ------ Leases Insurance Consolidation Property Other IFRS US$m US$m US$m US$m US$m US$m Operatingprofit (90) (10) 37 87 (88) 17,871 Share ofprofit inassociatesand jointventures - - - 18 - 316Gains ondisposal offixedassetsandinvestments - 11 - 1 (2) 804 ------ ------ ------ ------ ------- ------ Profit onordinaryactivitiesbefore tax (90) 1 37 106 (90) 18,991 Tax on profiton ordinaryactivities 27 (1) (6) (11) (298) (4,733) ------ ------ ------ ------ ------- ------ Profit onordinaryactivitiesafter tax (63) - 31 95 (388) 14,258 Minorityinterests - - (19) (35) (22) (1,340) ------ ------ ------ ------ ------- ------ Profitattributabletoshareholders (63) - 12 60 (410) 12,918 ------ ------ ------ ------ ------- ------ Consolidated income statement for the half-year to 31 December 2004 Reconciliation of UK GAAP and IFRS Adjustments to conform HSBC's UK GAAP income statement for the half-year to 31December 2004 to its accounting policies under IFRS are set out below: UK Retirement Goodwill Other Software Share- GAAP benefits amortisation goodwill capitalisation Based under UK adjustments payments GAAP US$m US$m US$m US$m US$m US$m Interestreceivable 26,725 - - - - -Interestpayable (10,807) - - - - - ------ ------ ------ ------ ------- ------ Net interestincome 15,918 - - - - - Fees andcommissionsreceivable 8,161 - - - - -Fees andcommissionspayable (1,432) - - - - -Dealingprofits 1,183 - - - - -Dividendincome 272 - - - - -Net investment income on assets backingpolicyholderliabilities - - - - - -Net earned insurancepremiums - - - - - -Otheroperatingincome 1,457 - - - - - ------ ------ ------ ------ ------- ------ Operatingincome 25,559 - - - - - Administrativeexpenses (12,648) (215) - (39) 175 (97) Depreciationandamortisation (1,815) - 931 (23) (108) - ------ ------ ------ ------ ------- ------ Operatingprofit beforeprovisions 11,096 (215) 931 (62) 67 (97) Provision forbad anddoubtfuldebts (3,554) - - - - -Provision forcontingentliabilitiesandcommitments 82 - - - - -Net insurance claims - - - - - -Amountswritten offfixedassetinvestments (16) - - - - - ------ ------ ------ ------ ------- ------ Operatingprofit 7,608 (215) 931 (62) 67 (97) Leases Insurance Consolidation Property Other IFRS US$m US$m US$m US$m US$m US$m Interestreceivable 11 25 123 - (29) 26,855Interestpayable - 5 (122) - 38 (10,886) ------ ------ ------ ------ ------- ------ Net interestincome 11 30 1 - 9 15,969 Fees andcommissionsreceivable - (11) 71 - (181) 8,040Fees andcommissionspayable - (184) (107) - 191 (1,532)Dealingprofits - - 66 - (30) 1,219Dividendincome - - 14 - (3) 283Net investmentincome onassets backingpolicyholderliabilities - 818 - - - 818Net earnedinsurancepremiums - 2,904 - - - 2,904Otheroperatingincome - (782) 25 30 (28) 702 ------ ------ ------ ------ ------- ------ Operatingincome 11 2,775 70 30 (42) 28,403 Administrativeexpenses - (24) 10 (3) 42 (12,799)Depreciationandamortisation (66) - (1) (6) (37) (1,125) ------ ------ ------ ------ ------- ------ Operatingprofit beforeprovisions (55) 2,751 79 21 (37) 14,479 Provision forbad anddoubtfuldebts - - - - 67 (3,487)Provision forcontingentliabilitiesandcommitments - - - - (44) 38Net insuranceclaims - (2,760) (50) - - (2,810)Amountswritten offfixed assetinvestments - - 3 - (1) (14) ------ ------ ------ ------ ------- ------ Operatingprofit (55) (9) 32 21 (15) 8,206 Consolidated income statement for the half-year to 31 December 2004 (continued) Reconciliation of UK GAAP and IFRS UK GAAP Retirement Goodwill Other Software Share- benefits amortisation goodwill capitalisation based under UK adjustments payments GAAP US$m US$m US$m US$m US$m US$m Operatingprofit 7,608 (215) 931 (62) 67 (97) Share ofprofit inassociatesand jointventures 169 - 4 2 - -Gains ondisposal offixedassetsandinvestments 463 - - - - - --------- --------- --------- --------- --------- --------- Profit onordinaryactivitiesbefore tax 8,240 (215) 935 (60) 67 (97) Tax on profiton ordinaryactivities (2,139) 49 - 23 (30) 19 --------- --------- --------- --------- --------- --------- Profit onordinaryactivitiesafter tax 6,101 (166) 935 (37) 37 (78) Minorityinterests (607) 1 - - - - --------- --------- --------- --------- --------- --------- Profitattributabletoshareholders 5,494 (165) 935 (37) 37 (78) --------- --------- --------- --------- --------- --------- Leases Insurance Consolidation Property Other IFRS US$m US$m US$m US$m US$m US$m Operatingprofit (55) (9) 32 21 (15) 8,206 Share ofprofit inassociatesand jointventures - - (5) 18 (1) 187Gains ondisposal offixedassetsandinvestments - 5 (1) 2 (2) 467 --------- --------- --------- --------- --------- --------- Profit onordinaryactivitiesbefore tax (55) (4) 26 41 (18) 8,860 Tax on profiton ordinaryactivities 16 4 (4) (1) (146) (2,209) --------- --------- --------- --------- --------- --------- Profit onordinaryactivitiesafter tax (39) - 22 40 (164) 6,651 Minorityinterests - - (25) (12) (30) (673) --------- --------- --------- --------- --------- --------- Profitattributabletoshareholders (39) - (3) 28 (194) 5,978 --------- --------- --------- --------- --------- --------- Consolidated income statement for the half-year to 30 June 2004 Reconciliation of UK GAAP and IFRS Adjustments to conform HSBC's UK GAAP income statement for the half-year to 30June 2004 to its accounting policies under IFRS are set out below: UK GAAP Retirement Goodwill Other Software Share- benefits amortisation goodwill capitalisation based under UK adjustments payments GAAP US$m US$m US$m US$m US$m US$m Interestreceivable 23,478 - - - - -Interestpayable (8,372) - - - - - --------- --------- --------- --------- --------- --------- Net interestincome 15,106 - - - - - Fees andcommissionsreceivable 7,716 - - - - -Fees andcommissionspayable (1,352) - - - - -Dealingprofits 1,383 - - - - -Dividendincome 329 - - - - -Net investment income onassets backingpolicyholderliabilities - - - - - -Net earned insurancepremiums - - - - - -Otheroperatingincome 1,846 - - - - - --------- --------- --------- --------- --------- --------- Operatingincome 25,028 - - - - - Administrativeexpenses (11,535) 45 - - 154 (55)Depreciationandamortisation (1,691) - 883 (34) (196) - --------- --------- --------- --------- --------- --------- Operatingprofit beforeprovisions 11,802 45 883 (34) (42) (55) Provision forbad anddoubtfuldebts (2,803) - - - - -Provision forcontingentliabilitiesandcommitments (109) - - - - -Net insurance claims - - - - - -Amountswritten offfixedassetinvestments 16 - - - - - --------- --------- --------- --------- --------- --------- Operatingprofit 8,906 45 883 (34) (42) (55) Leases Insurance Consolidation Property Other IFRS US$m US$m US$m US$m US$m US$m Interestreceivable (11) 36 131 - (18) 23,616Interestpayable - (1) (123) - 10 (8,486) --------- --------- --------- --------- --------- --------- Net interestincome (11) 35 8 - (8) 15,130 Fees andcommissionsreceivable - 8 (102) - 10 7,632Fees andcommissionspayable - (172) 98 - 4 (1,422)Dealingprofits - - 7 - 10 1,400Dividendincome - - 11 - (1) 339Net investmentincome onassetsbackingpolicyholderliabilities - 194 - - - 194Net earnedinsurancepremiums - 2,464 - - - 2,464Otheroperatingincome - (700) (4) 60 (123) 1,079 --------- --------- --------- --------- --------- --------- Operatingincome (11) 1,829 18 60 (108) 26,816 Administrativeexpenses - (25) 5 (4) (10) (11,425)Depreciationandamortisation (24) - 1 10 (49) (1,100) --------- --------- --------- --------- --------- ---------Operatingprofit beforeprovisions (35) 1,804 24 66 (167) 14,291 Provision forbad anddoubtfuldebts - - - - 95 (2,708)Provision forcontingentliabilitiesandcommitments - - - - - (109)Net insuranceclaims - (1,805) (20) - - (1,825)Amountswritten offfixedassetinvestments - - 1 - (1) 16 --------- --------- --------- --------- --------- --------- Operatingprofit (35) (1) 5 66 (73) 9,665 Consolidated income statement for the half-year to 30 June 2004 (continued) Reconciliation of UK GAAP and IFRS UK GAAP Retirement Goodwill Other Software Share- benefits amortisation goodwill capitalisation based under UK adjustments payments GAAP US$m US$m US$m US$m US$m US$m Operatingprofit 8,906 45 883 (34) (42) (55) Share ofprofit inassociatesand jointventures 123 - - - - -Gains ondisposal offixedassetsandinvestments 339 - - (8) - - --------- --------- --------- --------- --------- --------- Profit onordinaryactivitiesbefore tax 9,368 45 883 (42) (42) (55) Tax on profiton ordinaryactivities (2,368) (10) - 34 9 (31) --------- --------- --------- --------- --------- --------- Profit onordinaryactivitiesafter tax 7,000 35 883 (8) (33) (86) Minorityinterests (654) (4) - - - - --------- --------- --------- --------- --------- --------- Profitattributabletoshareholders 6,346 31 883 (8) (33) (86) --------- --------- --------- --------- --------- --------- Leases Insurance Consolidation Property Other IFRS US$m US$m US$m US$m US$m US$m Operatingprofit (35) (1) 5 66 (73) 9,665 Share ofprofit inassociatesand jointventures - - 5 - 1 129Gains ondisposal offixedassetsandinvestments - 6 1 (1) - 337 --------- --------- --------- --------- --------- --------- Profit onordinaryactivitiesbefore tax (35) 5 11 65 (72) 10,131 Tax on profiton ordinaryactivities 11 (5) (2) (10) (152) (2,524) --------- --------- --------- --------- --------- --------- Profit onordinaryactivitiesafter tax (24) - 9 55 (224) 7,607 Minorityinterests - - 6 (23) 8 (667) --------- --------- --------- --------- --------- --------- Profitattributabletoshareholders (24) - 15 32 (216) 6,940 --------- --------- --------- --------- --------- --------- Consolidated balance sheet at 31 December 2004 Reconciliation of UK GAAP and IFRS Adjustments to conform HSBC's UK GAAP balance sheet at 31 December 2004 to itsaccounting policies under IFRS are set out below: UK GAAP Retirement Dividends Goodwill Software Share- benefits capitalisation based payments US$m US$m US$m US$m US$m US$mASSETSCash andbalances atcentral banks 9,872 - - - - -Items in thecourse ofcollectionfrom otherbanks 6,352 - - - - -Treasury billsand othereligiblebills 30,284 - - - - -Hong KongGovernmentcertificatesofindebtedness 11,878 - - - - -Loans andadvances tobanks 142,712 - - - - -Loans andadvances tocustomers 669,831 - - - - -Debtsecurities 240,999 4 - - - -Equity shares 19,319 - - - - -Interests inassociates andjointventures 3,452 - - 3 - -Otherparticipatinginterests 881 - - - - -Goodwill andintangibleassets 29,382 - - 1,809 760 -Tangible fixedassets 18,829 - - - - -Other assets 73,498 1,152 - 57 (138) 110Prepaymentsand accruedincome 19,489 (1,003) - - - - --------- --------- --------- --------- --------- --------- Total assets 1,276,778 153 - 1,869 622 110 --------- --------- --------- --------- --------- --------- Leases Insurance Consolidation Property Other IFRS US$m US$m US$m US$m US$m US$mASSETSCash andbalances atcentral banks - - 72 - - 9,944Items in thecourse ofcollectionfrom otherbanks - - (14) - - 6,338Treasury billsand othereligiblebills - 197 - - - 30,481Hong KongGovernmentcertificatesofindebtedness - - - - - 11,878Loans andadvances tobanks - 699 40 - (2) 143,449Loans andadvances tocustomers (122) 342 3,602 - (762) 672,891Debtsecurities - 8,109 (701) - - 248,411Equity shares - 6,896 1,321 - 183 27,719 Interests inassociates andjointventures - - - (14) - 3,441Otherparticipatinginterests - - - - - 881Goodwill andintangibleassets - 1,874 (3) - 673 34,495Tangible fixedassets (596) - - (2,140) (89) 16,004Other assets - (19,141) 468 (241) (490) 55,275Prepaymentsand accruedincome - (64) 11 352 (14) 18,771 --------- --------- --------- --------- --------- --------- Total assets (718) (1,088) 4,796 (2,043) (501) 1,279,978 --------- --------- --------- --------- --------- --------- Consolidated balance sheet at 31 December 2004 (continued) Reconciliation of UK GAAP and IFRS UK GAAP Retirement Dividends Goodwill Software Share- benefits capitalisation based payments US$m US$m US$m US$m US$m US$mLIABILITIESHong Kongcurrency notesin circulation 11,878 - - - - -Deposits bybanks 83,539 - - - - -Customeraccounts 693,751 - - - - -Items in thecourse oftransmissionto other banks 5,301 - - - - -Debtsecurities inissue 208,593 - - - - -Otherliabilities 123,315 (3) (3,173) - - 27Liabilities to - - - - - -policyholdersunder long-termassurancebusinessRetirementbenefitliabilities - 6,475 - - - -Accruals anddeferredincome 16,500 31 - - - (140)Provision forliabilities andcharges- deferredtaxation 2,066 (128) - - 71 25- otherprovisions 5,532 (1,740) - - - -Subordinatedliabilities 26,486 - - - - -Minorityinterests 13,194 (12) 177 - - -Called upshare capital 5,587 - - - - -Share premiumaccount 4,881 - - - - -Other reserves 21,457 - - - - -Revaluationreserve 2,660 - - - - -Profit andloss account 52,038 (4,470) 2,996 1,869 551 198 --------- ------- --------- --------- --------- --------- Totalliabilities 1,276,778 153 - 1,869 622 110 --------- ------- --------- --------- --------- --------- Leases Insurance Consolidation Property Other IFRS US$m US$m US$m US$m US$m US$mLIABILITIESHong Kongcurrency notesin circulation - - - - - 11,878Deposits bybanks - - 516 - - 84,055Customeraccounts - (528) (151) - 693,072Items in thecourse oftransmissionto other banks - - - - - 5,301Debtsecurities inissue - (486) 3,614 - - 211,721Otherliabilities - (18,428) 295 - (4) 102,029Liabilities topolicyholdersunderlong-termassurance business - 19,190 - - - 19,190Retirementbenefitliabilities - - - - - 6,475Accruals anddeferredincome - 2 57 - 49 16,499Provision forliabilitiesandcharges- deferredtaxation (215) 362 18 220 (980) 1,439- otherprovisions - (1,202) 1 - 45 2,636Subordinatedliabilities - - - - - 26,486Minorityinterests - - 484 (161) (7) 13,675Called upshare capital - - - - - 5,587Share premiumaccount - - - - - 4,881Other reserves - - - - 210 21,667Revaluationreserve - - - (2,660) - -Profit andloss account (503) 2 (38) 558 186 53,387 --------- ------- --------- --------- --------- --------- Totalliabilities (718) (1,088) 4,796 (2,043) (501) 1,279,978 --------- ------- --------- --------- --------- --------- Consolidated balance sheet at 30 June 2004 Reconciliation of UK GAAP and IFRS Adjustments to conform HSBC's UK GAAP balance sheet at 30 June 2004 to itsaccounting policies under IFRS are set out below: UK GAAP Retirement Dividends Goodwill Software Share- benefits capitalisation based payments US$m US$m US$m US$m US$m US$mASSETSCash andbalances atcentral banks 10,103 - - - - -Items in thecourse ofcollectionfrom otherbanks 8,641 - - - - -Treasury billsand othereligiblebills 30,525 - - - - -Hong KongGovernmentcertificatesofindebtedness 10,984 - - - - -Loans andadvances tobanks 140,188 - - - - -Loans andadvances tocustomers 594,875 - - - - -Debtsecurities 225,349 4 - - - -Equity shares 14,048 - - - - -Interests inassociates andjointventures 1,421 (1) - - - -Otherparticipatinginterests 867 - - - - -Goodwill andintangibleassets 28,029 - - 892 687 -Tangible fixedassets 16,922 - - - - -Other assets 57,109 813 - 14 (117) 81Prepaymentsand accruedincome 14,871 (948) - - - - --------- --------- --------- --------- --------- --------- Total assets 1,153,932 (132) - 906 570 81 --------- --------- --------- --------- --------- --------- Leases Insurance Consolidation Property Other IFRS US$m US$m US$m US$m US$m US$mASSETSCash andbalances atcentral banks - - 72 - - 10,175Items in thecourse ofcollectionfrom otherbanks - - - - - 8,641Treasury billsand othereligiblebills - 50 - - - 30,575Hong KongGovernmentcertificatesofindebtedness - - - - - 10,984Loans andadvances tobanks - 606 19 - - 140,813Loans andadvances tocustomers (123) 297 5,054 - (862) 599,241Debtsecurities - 7,305 (434) - - 232,224Equity shares - 5,498 965 - 201 20,712Interests inassociates andjointventures - - (41) (10) - 1,369Otherparticipatinginterests - - - - - 867Goodwill andintangibleassets - 1,640 - - 686 31,934Tangible fixedassets (496) - (6) (1,755) (93) 14,572Other assets - (16,367) (281) (235) (258) 40,759Prepaymentsand accruedincome - (41) 13 356 (9) 14,242 --------- --------- --------- -------- --------- --------- Total assets (619) (1,012) 5,361 (1,644) (335) 1,157,108 --------- --------- --------- -------- --------- --------- Consolidated balance sheet at 30 June 2004 (continued) Reconciliation of UK GAAP and IFRS UK GAAP Retirement Dividends Goodwill Software Share- benefits capitalisation based payments US$m US$m US$m US$m US$m US$mLIABILITIESHong Kongcurrency notesin circulation 10,984 - - - - -Deposits bybanks 97,307 - - - - -Customeraccounts 635,031 - - - - -Items in thecourse oftransmissionto other banks 6,923 - - - - -Debtsecurities inissue 164,760 - - - - -Otherliabilities 106,120 (4) (1,538) 13 - 23Liabilities to policyholdersunder long-termassurancebusiness - - - - - -Retirementbenefitliabilities - 5,151 - - - -Accruals anddeferredincome 12,073 14 - - - (93)Provision forliabilities andcharges- deferredtaxation 1,908 (175) - - 69 26- otherprovisions 5,237 (1,560) - (68) - -Subordinatedliabilities 21,875 - - - - -Minorityinterests 12,455 (7) 102 - - -Called upshare capital 5,513 - - - - -Share premiumaccount 4,459 - - - - -Other reserves 21,431 - - 22 - -Revaluationreserve 2,281 - - - - -Profit andloss account 45,575 (3,551) 1,436 939 501 125 --------- --------- --------- ------- --------- --------- Totalliabilities 1,153,932 (132) - 906 570 81 --------- --------- --------- ------- --------- --------- Leases Insurance Consolidation Property Other IFRS US$m US$m US$m US$m US$m US$mLIABILITIESHong Kongcurrency notesin circulation - - - - - 10,984Deposits bybanks - 20 - - - 97,327Customeraccounts - (337) (92) - - 634,602Items in thecourse oftransmissionto other banks - - - - - 6,923Debtsecurities inissue - (493) 5,137 - - 169,404Otherliabilities - (15,581) 199 - 4 89,236Liabilities topolicyholdersunderlong-termassurancebusiness - 16,200 - - - 16,200Retirementbenefitliabilities - - - - - 5,151Accruals anddeferredincome - 1 12 - 39 12,046Provision forliabilitiesandcharges- deferredtaxation (189) 325 - 204 (933) 1,235- otherprovisions - (1,146) 2 - 27 2,492Subordinatedliabilities - - - - - 21,875Minorityinterests - - 180 (165) 2 12,567Called upshare capital - - - - - 5,513Share premiumaccount - - - - - 4,459Other reserves - - - - 86 21,539Revaluationreserve - - - (2,281) - -Profit andloss account (430) (1) (77) 598 440 45,555 --------- --------- --------- ------- --------- --------- Totalliabilities (619) (1,012) 5,361 (1,644) (335) 1,157,108 --------- --------- --------- ------- --------- ---------Consolidated balance sheet at 1 January 2004 Reconciliation of UK GAAP and IFRS Adjustments to conform HSBC's UK GAAP balance sheet at 1 January 2004 to itsaccounting policies under IFRS are set out below: UK GAAP Retirement Dividends Goodwill Software Share- benefits capitalisation based payments US$m US$m US$m US$m US$m US$mASSETSCash andbalances atcentral banks 7,661 - - - - -Items in thecourse ofcollectionfrom otherbanks 6,628 - - - - -Treasury billsand othereligiblebills 20,391 - - - - -Hong KongGovernmentcertificatesofindebtedness 10,987 - - - - -Loans andadvances tobanks 117,173 - - - - -Loans andadvances tocustomers 528,977 - - - - -Debtsecurities 205,722 4 - - - -Equity shares 12,879 - - - - -Interests inassociates andjointventures 1,273 (1) - 8 - -Otherparticipatinginterests 690 - - - - -Goodwill andintangibleassets 28,640 - - 112 718 -Tangible fixedassets 15,748 - - - - -Other assets 63,128 733 - 44 (127) 111Prepaymentsand accruedincome 14,319 (948) - (77) - 24 --------- --------- --------- -------- --------- --------- Total assets 1,034,216 (212) - 87 591 135 --------- --------- --------- -------- --------- --------- Leases Insurance Consolidation Property Other IFRS US$m US$m US$m US$m US$m US$mASSETSCash andbalances atcentral banks - - 72 - - 7,733Items in thecourse ofcollectionfrom otherbanks - - - - - 6,628Treasury billsand othereligiblebills - 84 - - - 20,475Hong KongGovernmentcertificatesofindebtedness - - - - - 10,987Loans andadvances tobanks - 752 109 - - 118,034Loans and advances tocustomers (110) 316 5,555 - (888) 533,850Debtsecurities - 6,597 (466) - - 211,857Equity shares - 5,037 578 - 200 18,694Interests inassociates andjointventures - - (16) (11) - 1,253Otherparticipatinginterests - - - - - 690Goodwill andintangibleassets - 1,579 - - 869 31,918Tangible fixedassets (465) - - (979) (94) 14,210Other assets - (15,169) (649) (18) (286) 47,767Prepaymentsand accruedincome - 76 (108) 353 (14) 13,625 --------- --------- --------- -------- --------- --------- Total assets (575) (728) 5,075 (655) (213) 1,037,721 --------- --------- --------- -------- --------- --------- Consolidated balance sheet at 1 January 2004 (continued) Reconciliation of UK GAAP and IFRS UK GAAP Retirement Dividends Goodwill Software Share- benefits capitalisation based payments US$m US$m US$m US$m US$m US$mLIABILITIESHong Kongcurrency notesin circulation 10,987 - - - - -Deposits bybanks 70,426 - - - - -Customeraccounts 573,130 - - - - -Items in thecourse oftransmissionto other banks 4,383 - - - - -Debtsecurities inissue 153,562 - - - - -Otherliabilities 94,669 (126) (2,794) 156 - (5)Liabilities to policyholdersunder long-termassurance business - - - - - -Retirementbenefitliabilities - 4,982 - - - -Accruals anddeferredincome 13,760 (6) - 26 - (106)Provision forliabilities andcharges- deferredtaxation 1,670 (142) - - 73 35- otherprovisions 5,078 (1,390) - (73) - -Subordinatedliabilities 21,197 - - - - -Minorityinterests 10,881 (1) 167 - - -Called upshare capital 5,481 - - - - -Share premiumaccount 4,406 - - - - -Other reserves 21,543 - - - - -Revaluationreserve 1,615 - - - - -Profit andloss account 41,428 (3,529) 2,627 (22) 518 211 --------- --------- --------- ------- --------- --------- Totalliabilities 1,034,216 (212) - 87 591 135 --------- --------- --------- ------- --------- --------- Leases Insurance Consolidation Property Other IFRS US$m US$m US$m US$m US$m US$mLIABILITIESHong Kongcurrency notesin circulation - - - - - 10,987Deposits bybanks - 13 - - - 70,439Customeraccounts - (78) (23) - - 573,029Items in thecourse oftransmissionto other banks - - - - - 4,383Debtsecurities inissue - (516) 5,560 - - 158,606Otherliabilities - (14,773) (598) - (28) 76,501Liabilities topolicyholdersunderlong-termassurancebusiness - 15,168 - - - 15,168Retirementbenefitliabilities - - - - - 4,982Accruals anddeferredincome - - 12 - 28 13,714Provision forliabilitiesandcharges- deferredtaxation (173) 306 3 201 (862) 1,111- otherprovisions - (848) (25) - 9 2,751Subordinatedliabilities - - - - - 21,197Minorityinterests - - 148 (101) 11 11,105Called upshare capital - - - - - 5,481Share premiumaccount - - - - - 4,406Other reserves - - - - - 21,543Revaluationreserve - - - (1,615) - -Profit andloss account (402) - (2) 860 629 42,318 --------- --------- --------- ------- --------- ---------Totalliabilities (575) (728) 5,075 (655) (213) 1,037,721 --------- --------- --------- ------- --------- --------- Appendix II____________________________________________________________________________ IFRS Consolidated income statement for the year ended 31 December 2004 Effect of IAS 1 'Presentation of Financial Statements' IFRS numbers Reclassification IFRS numbers in in UK GAAP IFRS format format US$m US$m US$m Interest receivable 50,471 50,471 Interest income Interest payable (19,372) (19,372) Interest expense -------- -------- Net interest Net interest income 31,099 31,099 income Fees and commissions receivable 15,672 15,672 Fee income Fees and commissionsRelated Shares:
HSBC Holdings