HSBC 2002 Annual Report Download - page 287

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impairment, there would have been a reduction in the reserves of HSBC Holdings at 31 December 2002 of
US$13,906 million (at 31 December 2001: US$8,962 million). There would have been no impact on the
consolidated financial statements of HSBC.
HSBC applies UK Statement of Standard Accounting Practice 24 ‘Accounting for pension costs’ to defined benefit
schemes, which requires that the cost of providing pensions be recognised on a systematic and rational basis over the
period during which benefit is gained from the employees’ services. If HSBC had prepared its financial statements
under Hong Kong Statement of Standard Accounting Practice 34 ‘Employee benefits’ a defined benefit pension
liability of US$4,023 million would have been recognised in the balance sheet at 31 December 2002 (at 31
December 2001: US$2,149 million). There would have been an additional charge to the profit and loss account in
2002 of US$7 million.
* The 2001 figures have been calculated by reference to UK GAAP figures 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.