HSBC 2003 Annual Report Download - page 343

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of relevant tax assets of US$824 million (2002: US$335 million), would be to reduce the Group’ s shareholders’
equity under US GAAP by US$1,951 million (2002: US$824 million).
Estimated pension costs for these plans computed under SFAS 87 are as follows:
2003 2002 2001
US$m US$m US$m
Components of net periodic benefit cost
Service cost ..................................................................................................... 429 438 447
Interest cost ..................................................................................................... 915 862 801
Expected return on plan assets ........................................................................ (992
)
(885
)
(862
)
Amortisation of prior service cost ................................................................... 544
Amortisation of unrecognised net liability at 30 June 1992 ............................. 666
Amortisation of recognised net actuarial loss/(gain) ....................................... 74 14 (1
)
Net periodic pension cost ................................................................................ 437 439 395
The US GAAP pension cost of US$437 million (2002: US$439 million; 2001 US$395 million) compares with
US$703 million for these plans under UK GAAP (2002: US$377 million; 2001: US$369 million) for the
schemes included in the SFAS 87 calculation.
2003 2002
US$m US$m
Change in projected benefit obligation
Projected benefit obligation as at 1 January ................................................................................. 15,463 14,054
Service cost .................................................................................................................................. 429 438
Interest cost .................................................................................................................................. 915 862
Employee contributions ............................................................................................................... 42
Net actuarial loss/(gain) ............................................................................................................... 2,306 (600
)
Acquisition of subsidiary ............................................................................................................. 897 –
Plan amendment ........................................................................................................................... 61
Benefits paid ................................................................................................................................ (714) (565
)
Exchange movements ................................................................................................................... 1,779 1,271
Projected benefit obligation as at 31 December ........................................................................... 21,085 15,463
Change in plan assets
Plan assets at fair value as at 1 January ........................................................................................ 11,786 12,097
Actual return on plan assets ......................................................................................................... 2,399 (1,393
)
Acquisition of subsidiary ............................................................................................................. 832 –
Employer contributions ................................................................................................................ 1,653 616
Employee contributions ............................................................................................................... 42
Benefits paid ................................................................................................................................ (714
)
(565
)
Exchange movements ................................................................................................................... 1,384 1,029
Plan assets at fair value as at 31 December .................................................................................. 17,344 11,786
Funded status ............................................................................................................................... (3,741
)
(3,677
)
Unrecognised net obligation existing at 30 June 1992 ................................................................. –7
Unrecognised net actuarial loss .................................................................................................... 3,558 2,291
Unrecognised prior service cost ................................................................................................... 42 22
Accrued pension cost ................................................................................................................... (141
)
(1,357
)
Additional minimum liability ....................................................................................................... (2,789
)
(1,175
)
(2,930
)
(2,532
)
Amounts recognised under US GAAP
Prepaid benefit cost ...................................................................................................................... 833 538
Accrued benefit liability ............................................................................................................... (974
)
(1,895
)
Accrued pension cost ................................................................................................................... (141
)
(1,357
)
US GAAP adjustment
Accrued net pension cost under US GAAP .................................................................................. (141
)
(1,357
)
Additional minimum liability ....................................................................................................... (2,789
)
(1,175
)
Intangible asset ............................................................................................................................. 14 16
Amounts recognised for these schemes under UK GAAP ............................................................ (206
)
(6
)
(3,122
)
(2,522
)