HSBC 2005 Annual Report Download - page 318

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
316
HSBC Holdings
At 31 December 2005
Due within
one year
Due after
more than
one year Total
US$m US$m US$m
Assets
Loans and advances to HSBC undertakings ................................................. 4,661 9,431 14,092
Financial investments ................................................................................... – 3,517 3,517
Other assets ................................................................................................... 171 – 171
Prepayments and accrued income ................................................................. 11 8 19
4,843 12,956 17,799
Liabilities
Amounts owed to HSBC undertakings ......................................................... 1,900 2,175 4,075
Financial liabilities designated at fair value .................................................. – 13,370 13,370
Other liabilities ............................................................................................. 1,196 7 1,203
Accruals and deferred income ...................................................................... 95 – 95
Subordinated liabilities ................................................................................. – 5,236 5,236
3,191 20,788 23,979
At 31 December 2004
Due within
one year
Due after
more than
one year Total
US$m US$m US$m
Assets
Loans and advances to HSBC undertakings ................................................. 10,197 6,439 16,636
Financial investments ................................................................................... – 1,885 1,885
Other assets ................................................................................................... 632 – 632
Prepayments and accrued income ................................................................. 5 – 5
10,834 8,324 19,158
Liabilities
Amounts owed to HSBC undertakings ......................................................... 242 7,110 7,352
Other liabilities ............................................................................................. 1,198 – 1,198
Accruals and deferred income ...................................................................... 172 – 172
Subordinated liabilities ................................................................................. – 17,812 17,812
1,612 24,922 26,534
34 Foreign exchange exposures
Structural foreign exchange exposures
HSBC’s structural foreign exchange exposures are represented by the net asset value of its foreign exchange equity
and subordinated debt investments in subsidiary undertakings, branches, joint ventures and associates. Gains or
losses on structural foreign exchange exposures are taken to reserves. HSBC’s management of its structural foreign
exchange exposures is discussed in the ‘Market risk’ section on page 168.
HSBC Holdings retains foreign exchange exposure to dividends receivable from its UK subsidiaries and euro-
denominated loans to subsidiaries.