HSBC 2004 Annual Report Download - page 282

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
280
(viii) Increase in stake in an existing subsidiary is excluded from the table below. On 20 April 2004, HSBC
increased its stake in HSBC Guyerzeller Bank AG from 93.51 per cent to 100 per cent for a cash
consideration of US$17 million. Goodwill of US$5 million arose from this acquisition.
The assets and liabilities at the dates of acquisition and the total consideration paid are set out in the following
table. The adjustments in the table below primarily represent revaluations reflecting the recognition of the fair
value of financial instruments and tangible fixed assets acquired, and adjustments to provisions and other
liabilities.
The fair value of the assets and liabilities acquired have been determined on a provisional basis pending
completion of the fair value appraisal process.
Book
value
Accounting
policy
alignments Revaluations
Fair
value
US$m US$m US$m US$m
At date of acquisition
Cash and balances at central banks ...................... 74––74
Items in the course of collection from other banks 23––23
Loans and advances to banks1 .............................. 6,020 – – 6,020
Loans and advances to customers ........................ 7,729 – 51 7,780
Debt securities ..................................................... 5,720 – 11 5,731
Equity shares ........................................................ 34–539
Tangible fixed assets ............................................ 145 – 76 221
Other asset categories .......................................... 1,241 6 (4) 1,243
Deposits by banks ................................................ (1,429) – – (1,429)
Customer accounts ............................................... (15,076) – (90) (15,166)
Debt securities in issue ......................................... (869) – 10 (859)
Provisions for liabilities and charges .................... (54) – (29) (83)
Other liability categories ...................................... (2,223) – (61) (2,284)
Net assets acquired ............................................... 1,335 6 (31) 1,310
Goodwill attributable:
Subsidiaries (Note 23) ..................................... 1,218
Total consideration including costs of acquisition 2,528
1Includes cash equivalent balances of US$40 million.
26 Other assets
2004 2003
US$m US$m
Bullion ............................................................................................................................................ 3,180 2,230
Assets, including gains, resulting from off-balance-sheet interest rate, exchange rate
and equities contracts which are marked to market ..................................................................... 32,188 27,652
Current taxation recoverable ........................................................................................................... 219 190
Deferred taxation (Note 31a) ........................................................................................................... 2,581 2,942
Long-term assurance assets attributable to policyholders ................................................................ 19,618 15,634
Other accounts ................................................................................................................................ 15,712 14,480
73,498 63,128