HSBC 2007 Annual Report Download - page 344

HSBC HOLDINGS PLC
Financial Statements (continued)
342
HSBC Holdings statement of changes in total equity for the year ended 31 December 2007
2006
2007 (restated)
US$m US$m
Called up share capital
At 1 January .................................................................................................................................. 5,786 5,667
Shares issued in connection with the early settlement of HSBC Finance 8.875 per cent
Adjustable Conversion-Rate Equity Security Units ................................................................. – 2
Shares issued under employee share plans ................................................................................... 17 38
Shares issued in lieu of dividends ................................................................................................. 112 79
At 31 December ............................................................................................................................ 5,915 5,786
Share premium account
At 1 January .................................................................................................................................. 7,789 6,896
Shares issued under employee share plans ................................................................................... 460 975
Shares issued in lieu of dividends and amounts arising thereon .................................................. (115) (82)
At 31 December ............................................................................................................................ 8,134 7,789
Merger reserve and other reserves
At 1 January and 31 December ..................................................................................................... 28,942 28,942
Other reserves
Available-for-sale fair value reserve
At 1 January .................................................................................................................................. 246 337
Fair value changes taken to equity1 ............................................................................................... 246 (121)
Tax on items taken directly to equity1 .......................................................................................... (10) 30
At 31 December ............................................................................................................................ 482 246
Share-based payment reserve2
At 1 January .................................................................................................................................. 2,111 1,535
Exercise and lapse of share options and vesting of share awards ................................................. (751) (623)
Cost of share-based payment arrangements .................................................................................. 29 58
Equity investments granted to employees of subsidiaries under employee share plans ............... 818 1,143
Other movements .......................................................................................................................... (239) (2)
At 31 December ............................................................................................................................ 1,968 2,111
Other paid-in capital
At 1 January .................................................................................................................................. 936 650
Exercise and lapse of share options .............................................................................................. 245 286
At 31 December ............................................................................................................................ 1,181 936
Total other reserves at 31 December ................................................................................................. 3,631 3,293
Retained earnings
At 1 January .................................................................................................................................. 10,588 9,501
Profit for the year attributable to shareholders ............................................................................. 9,499 7,139
Dividends to shareholders of the parent company ........................................................................ (10,241) (8,769)
Amounts arising on shares in lieu of dividends ............................................................................ 4,354 2,528
Own shares adjustments ................................................................................................................ 16 157
Tax on share based payments ........................................................................................................ (7) 9
Exchange differences and other movements1 ............................................................................... – 23
At 31 December3 ........................................................................................................................... 14,209 10,588
1 The total net income/(expense) taken directly to equity during the year was US$229 million (2006: US$(59) million).
2 On 1 January 2007, HSBC Holdings adopted IFRIC 11. Comparative information has been restated accordingly. See Note 1a.
3 Retained earnings include 30,706,713 (US$554 million) of own shares held to fund employee share plans (2006: 35,639,856,
US$544 million).
The accompanying notes on pages 344 to 452, the audited sections of the ‘Report of the Directors: The Management of Risk’ on pages
192 to 288, ‘Critical accounting policies’ on pages 132 to 134 and ‘Off-balance sheet arrangements and special purpose entities’ on pages
183 to 191 form an integral part of these financial statements.