HSBC 2001 Annual Report Download - page 200

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
198
(d) Investment properties
The valuation at which investment properties are included in tangible fixed assets, together with the net book
value of these properties calculated under the historical cost basis, is as follows:
2001 2000
At valuation At cos
t
At valuation At cos
t
US$m US$m US$
m
US$
m
Freehold land and buildings....................... 80 80 53 53
Short and long leasehold land and
buildings................................................. 476 145 506 154
556 225 559 207
Investment properties are valued on an open market value basis at 31 December annually by professional
valuers. Investment properties in Hong Kong, the Macau Special Administrative Region and mainland China,
which represent 89% by value of HSBC’ s properties subject to revaluation, were valued by Chesterton Petty.
The valuations were carried out by qualified valuers who are members of the Hong Kong Institute of Surveyors.
As a result of the revaluation, the net book value of investment properties has decreased by US$30 million
(2000: surplus of US$12 million). A deficit of US$18 million, net of minority interests of US$12 million, has
been credited to reserves at 31 December 2001.
HSBC Holdings had no investment properties at 31 December 2001 or 2000.
(e) HSBC properties leased to customers
HSBC properties leased to customers, none of which was held by HSBC Holdings, included US$522 million at
31 December 2001 (2000: US$518 million) let under operating leases, net of accumulated depreciation of
US$27 million (2000: US$32 million).
(f) Land and buildings occupied for own activities
2001 2000
US$m US$m
Net book value.................................................................................................... 7,468 7,961
The property owned by HSBC Holdings was unoccupied at 31 December 2001 (31 December 2000: occupied
by another HSBC company).
(g) Residual values of equipment on operating leases
Included in the net book value of equipment on operating leases are residual values at the end of current lease
terms, which will be recovered through re-letting or disposal in the following periods:
2001 2000
US$m US$m
Within 1 year ..................................................................................................... 248 155
Between 1-2 years.............................................................................................. 386 219
Between 2-5 years.............................................................................................. 1,017 1,308
More than 5 years .............................................................................................. 527 513
Total exposure ................................................................................................... 2,178 2,195