HSBC 2001 Annual Report Download - page 253

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UK GAAP US GAAP
Deferred taxation
Deferred taxation is provided on timing differences
using the liability method only to the extent that it is
probable that an actual liability or asset will crystallise.
As provided by SFAS 109 ‘Accounting for Income
Taxes’ , deferred tax liabilities and assets are
recognised in respect of all temporary differences. A
valuation allowance is raised against any deferred tax
asset where it is more likely than not that the asset, or a
part thereof, will not be realised.
Acceptances
Acceptances outstanding are not included in the
consolidated balance sheet.
Acceptances outstanding and the matching customer
liabilities are included in the consolidated balance
sheet.
Profit and loss presentation
The following items are separately disclosed in the
profit and loss account:
Provisions for contingent liabilities and commitments. Classified as ‘Operating expenses’ .
Amounts written off fixed asset investments. Classified as ‘Other operating income’ .
Gains on disposal of investments and tangible fixed
assets.
Classified as ‘Other operating income’ .