HSBC 2007 Annual Report Download - page 445

443
2005
Other reserves
Called up share capital
Share premium2
Retained earnings3
Available- for-sale fair value reserve
Cash flow hedging reserve4
Foreign exchange reserve
Share- based payment reserve
Merger reserve5
Total share- holders’ equity
Minority interests
Total equity
US$m US$m US$m US$m US$m US$m US$m US$m US$m US$m US$m
At 1 January .............................................................................. 5,587 4,881 49,432 – – 3,215 1,349 21,058 85,522 13,675 99,197
IFRSs transition adjustment at 1 January 20051 ...................... – – (1,762) 1,919 410 686 – – 1,253 (10,077) (8,824)
Shares issued under employee share plans ............................... 28 662 – – – – – – 690 – 690
Shares issued in lieu of dividends and amounts
arising thereon ...................................................................... 52 (52) 1,811 – – – – – 1,811 – 1,811
New share capital subscribed, net of costs2 ............................. – 1,405 – – – – – – 1,405 – 1,405
Profit for the year ...................................................................... – – 15,081 – – – – – 15,081 792 15,873
Dividends to shareholders ........................................................ – – (7,750) – – – – – (7,750) (689) (8,439)
Own shares adjustment ............................................................. – – (558) – – – 127 – (431) – (431)
Share of changes recognised directly in equity in
the equity of associates or joint ventures ............................. – – 161 – – – – – 161 – 161
Actuarial gains/(losses) on defined benefit plans .................... – – (820) – – – – – (820) 8 (812)
Exchange differences ............................................................... – – (3,449) (141) (41) (568) 14 – (4,185) (72) (4,257)
Fair value losses taken to equity .............................................. – – – (351) (63) – – – (414) (78) (492)
Amounts transferred to the income statement4 ......................... – – – (226) (106) – – – (332) (14) (346)
Exercise and lapse of share options and vesting of
share awards ......................................................................... – – 303 – – – (481) – (178) – (178)
Cost of share-based payment arrangements ............................. – – – – – – 540 – 540 – 540 Other movements ...................................................................... – – 58 (400) – – – – (342) – (342)
Tax on items taken directly to or transferred from equity ....... – – 267 162 (8) – – – 421 16 437 Transfers ................................................................................... – – 3,449 141 41 (3,617) (14) – – – –
Net increase in minority interest arising on acquisitions,
disposals and capital issuance .............................................. –
–
– – – – – – – – 2,233 2,233
At 31 December ........................................................................ 5,667 6,896 56,223 1,104 233 (284) 1,535 21,058 92,432 5,794 98,226 1 For an explanation of the IFRSs transition adjustment at 1 January 2005, see Note 46 on the Financial Statements in the Annual Report and Accounts 2005.
2 Share premium includes the deduction of US$40 million in respect of issuance costs incurred during the year.
3 Retained earnings include 144,041,122 (US$2,579 million) of own shares held within HSBC’s insurance business, retirement funds for the benefit of policyholders or beneficiaries within employee trusts
for the settlement of shares expected to be delivered under employee share schemes or bonus plans, and the market-making activities in Global Markets. 2005 numbers have been restated to conform with
the current year’s presentation.
4 Amounts transferred to the income statement in respect of cash flow hedges include US$101 million taken to ‘Net interest income’ and US$5 million taken to ‘Net trading income’.
5 Statutory share premium relief under Section 131 of the Companies Act 1985 was taken in respect of the acquisition of HSBC Bank plc in 1992, HSBC France in 2000 and HSBC Finance Corporation in
2003 and the shares issued were recorded at their nominal value only. In HSBC’s consolidated accounts the fair value difference of US$8,290 million in respect of HSBC France and US$12,768 million in
respect of HSBC Finance Corporation is a merger reserve.
Cumulative goodwill amounting to US$5,138 million has been charged against reserves in respect of acquisitions of subsidiaries prior to 1 January 1998, including US$3,469 million charged against the merger reserve arising on the acquisition of HSBC Bank plc. The balance of US$1,669 million has been charged against retained earnings.