HSBC 2001 Annual Report Download - page 199

197
(c) Valuations
HSBC HSBC Holdings
2001 2000 2001 2000
US$m US$m US$m US$m
Cost or valuation of freehold and long
and short leasehold land and buildings
(excluding investment properties):
At 2001 valuation (2000: at 2000
valuation)................................................ 7,103 6,783 4 7
At cost........................................................ 1,697 2,630
–
–
8,800 9,413 4 7
On the historical cost basis, freehold and
long and short leasehold land and
buildings would have been included as
follows (excluding investment
properties):
Cost............................................................ 7,538 7,671
–
–
Accumulated depreciation ......................... (1,575) (1,356)
–
–
5,963 6,315
–
–
HSBC values its non-investment properties on an annual basis. In September 2001, except as noted below,
HSBC’ s freehold and long leasehold properties, together with all leasehold properties in Hong Kong, were
revalued on an existing use basis or open market value as appropriate or, in the case of a few specialised
properties, at depreciated replacement cost. The properties were valued either by professional external valuers or
by professionally qualified staff and updated for any material changes at 31 December 2001.
As a result of the revaluation, the net book value of land and buildings (excluding investment properties)
decreased by US$241 million (2000: increase US$385 million). A deficit of US$227 million (net of minority
interest of US$14 million) (2000: surplus of US$357 million), net of minority interest of US$14 million
(2000:US$28 million) was debited to reserves at 31 December 2001.
The property of HSBC Holdings was also valued by an independent, professionally qualified valuer at open
market value. The deficit on revaluation of US$3 million has been debited to reserves at 31 December 2001
(2000: surplus US$1 million).
Included within ‘Short leasehold land and buildings’ are the following amounts in respect of assets classed as
improvements to buildings, which are carried at depreciated historical cost:
Cos
t
Accumulate
d
depreciation
US$m US$m
At 1 January 2001............................................................................................... 627 (458)
Additions ............................................................................................................ 42
–
Disposals............................................................................................................. (51)
–
Charge for the year..............................................................................................
–
(26)
Exchange and other movements ......................................................................... 158 211
At 31 December 2001........................................................................................ 776 (273)
Net book value at 31 December 2001 (2000: US$169 million) ....................... 503