HSBC 2006 Annual Report Download - page 292

HSBC HOLDINGS PLC
Statement of Directors’ Responsibilities in relation to Financial Statements
290
The following statement, which should be read in conjunction with the Auditors’ statement of their responsibilities
set out in their report on pages 291 and 292, is made with a view to distinguishing for shareholders the respective
responsibilities of the Directors and of the Auditors in relation to the financial statements.
The Directors are responsible for preparing the Annual Report, the consolidated financial statements of HSBC
Holdings and its subsidiaries (the ‘Group’) and holding company financial statements for HSBC Holdings (the
‘parent company’) in accordance with applicable law and regulations.
Company law requires the Directors to prepare Group and parent company financial statements for each
financial year. The Directors are required to prepare the Group financial statements in accordance with IFRSs as
adopted by the EU and have elected to prepare the parent company financial statements on the same basis.
The Directors are also required to present additional information for US Shareholders. Accordingly these
financial statements are framed to meet both UK and US requirements to give a consistent view to all shareholders.
The Group and parent company financial statements are required by law and IFRSs as adopted by the EU to
present fairly the financial position of the Group and the parent company and the performance for that period; the
Companies Act 1985 provides in relation to such financial statements that references in the relevant part of that Act
to financial statements giving a true and fair view are references to their achieving a fair presentation.
In preparing each of the Group and parent company financial statements, the Directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgments and estimates that are reasonable and prudent; and
• state whether they have been prepared in accordance with IFRSs as adopted by the EU.
The Directors are required to prepare the financial statements on the going concern basis unless it is not
appropriate. Since the Directors are satisfied that the Group has the resources to continue in business for the
foreseeable future, the financial statements continue to be prepared on the going concern basis
The Directors have responsibility for ensuring that sufficient accounting records are kept that disclose with
reasonable accuracy at any time the financial position of the parent company and enable them to ensure that its
financial statements comply with the Companies Act 1985.
The Directors have general responsibility for taking such steps as are reasonably open to them to safeguard the
assets of the Group and to prevent and detect fraud and other irregularities.
Under applicable law and regulations, the Directors also have responsibility for preparing a Directors’ Report,
Directors’ Remuneration Report and the Corporate Governance statement on pages 248 to 289 that comply with that
law and those regulations.
The Directors have responsibility for the maintenance and integrity of the Annual Report and Accounts as
they appear on the company’s website. Legislation in the UK governing the preparation and dissemination of
financial statements may differ from legislation in other jurisdictions.
On behalf of the Board 5 March 2007
R G Barber, Secretary