HSBC 2013 Annual Report Download - page 104

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HSBC BANK CANADA
21 Financial liabilities designated at fair value
2013
$m
2012
$m
Subordinated debentures (note 23) ................................................................................ 428 436
The carrying amount at 31 December 2013 of financial liabilities designated at fair value was $28m higher (2012: $36m
higher) than the contractual amount at maturity. At 31 December 2013, the cumulative amount of change in fair value
attributable to changes in credit risk was a gain of $2m (2012: $7m gain).
22 Other liabilities
2013
$m
2012
$m
Mortgages sold with recourse ........................................................................................ 1,882 1,995
Accounts payable ........................................................................................................... 273 189
Provisions and other non-financial liabilities ................................................................ 153 162
Share based payment liability ........................................................................................ 20 26
Current tax ..................................................................................................................... 917
2,337 2,389
23 Subordinated liabilities
Subordinated debentures, which are unsecured and subordinated in right of payment to the claims of depositors and
certain other creditors, comprise:
Year of
maturity
Foreign
Currency
Amount
$m
Carrying amount
Interest rate (%) 2013
$m
2012
$m
Issued to HSBC Group Companies
4.8221 ..................................................................... 2094 US$85 –85
Issued to third parties
4.942 ....................................................................... 2021 200 200
4.803 ....................................................................... 2022 428 436
30 day bankers’ acceptance rate plus 0.50% ......... 2083 39 39
Total debentures .......................................................... 667 760
Less: designated at fair value (note 21) ................ (428) (436)
Debentures at amortized cost ...................................... 239 324
1 The interest rate is fixed at 2.478%. These debentures are in a fair value hedging relationship which is adjusted for the fair value of the
hedged risk. The debenture was redeemed at its fair value of US$85m for cash on 9 December 2013.
2 The interest rate is fixed at 4.94% until March 2016 and thereafter the rate reprices at the 90 day average bankers’ acceptance rate
plus 1%.
3 Interest rate is fixed at 4.8% until April 2017 and thereafter interest is payable at an annual rate equal to the 90 day bankers’ acceptance
rate plus 1%. These debentures are designated as held for trading under the fair value option.
Notes on the Consolidated Financial Statements (continued)
102