HSBC 2005 Annual Report Download - page 27

HSBC HOLDINGS PLC
Description of Property
25
At 31 December 2005, HSBC operated from some
9,800 operational properties worldwide, of which
approximately 3,300 were located in Europe, 600 in
Hong Kong and the Rest of Asia-Pacific, 4,000 in
North America (including 1,600 in Mexico) and
1,900 in South America. These properties had an
area of approximately 63.8 million square feet
(2004: 62.2 million square feet).
In addition, properties with a net book value of
US$2,170 million were held for investment
purposes. Of the total net book value of HSBC
properties, more than 80 per cent were owned or
held under long-term leases. Further details are
included in Note 23 on the Financial Statements.
HSBC’s properties are stated at cost, being
historical cost or fair value at the date of transition to
IFRSs (their deemed cost) less any impairment
losses, and are depreciated on a basis calculated to
write off the assets over their estimated useful lives.
Legal Proceedings
HSBC is named in and is defending legal actions in
various jurisdictions arising out of its normal
business operations. None of the above proceedings
is regarded as material litigation.