13th Nov 2006 11:06
HSBC Holdings PLC13 November 2006 Exhibit 18 Letter from Independent Accountant Regarding Change in Accounting Principles-------------------------------------------------------------------------------- November 10, 2006 HSBC USA Inc.452 Fifth AvenueNew York, NY 10018 Ladies and Gentlemen: We have been furnished with a copy of the quarterly report on Form 10-Q of HSBCUSA Inc. (the "Company") for the three months ended September 30, 2006, and haveread the Company's statements contained in Note 7 to the condensed consolidatedfinancial statements included therein. As stated in Note 7, the Company changedits method of applying an accounting principle for the annual goodwillimpairment test date by changing the impairment test date from the second fiscalquarter to the third fiscal quarter, and states that the newly adopted method ofapplying an accounting principle is preferable in the circumstances because thedate for the annual goodwill impairment test will be consistent with theimpairment test date used by the Company's ultimate Parent, HSBC Holdings plc,and other subsidiaries. In accordance with your request, we have reviewed anddiscussed with Company officials the circumstances and business judgment andplanning upon which the decision to make this change in the method of accountingwas based. We have not audited any financial statements of the Company as of any date orfor any period subsequent to December 31, 2005, nor have we audited theinformation set forth in the aforementioned Note 7 to the condensed consolidatedfinancial statements; accordingly, we do not express an opinion concerning thefactual information contained therein. With regard to the aforementioned accounting change, authoritative criteria havenot been established for evaluating the preferability of one acceptable methodof accounting over another acceptable method. However, for purposes of theCompany's compliance with the requirements of the Securities and ExchangeCommission, we are furnishing this letter. Based on our review and discussion, with reliance on management's businessjudgment and planning, we concur that the newly adopted method of accounting ispreferable in the Company's circumstances. Very truly yours, /s/ KPMG LLP-------------------------- KPMG LLP 74 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
HSBC Holdings