HSBC 2002 Annual Report Download - page 241

239
The assets and liabilities at the dates of acquisition and the total consideration paid are set out in the following
table:
Book value Revaluations
Accountin
g
policy
alignments Fair value
US$m US$m US$m US$m
At date of acquisition:
Cash and balances at central banks ............. 498
–
–
498
Treasury bills and other eligible bills.......... 935
–
–
935
Loans and advances to banks...................... 5,293
–
–
5,293
Loans and advances to customers ............... 9,805 (176) (310) 9,319
Debt securities ............................................ 5,491 (374)
–
5,117
Equity shares............................................... 7
–
–
7
Tangible fixed assets................................... 242 (8) (57) 177
Other asset categories ................................. 930 183 29 1,142
Deposits by banks ....................................... (2,798)
–
–
(2,798)
Customer accounts...................................... (14,286)
–
–
(14,286)
Items in the course of transmission to
other banks .............................................. (120)
–
–
(120)
Debt securities in issue ............................... (4,932)
–
–
(4,932)
Provisions for liabilities and charges .......... (50) (129) (12) (191)
Subordinated liabilities ............................... (214)
–
–
(214)
Other liability categories............................. (530) (54)
–
(584)
271 (558) (350) (637)
Add: minority interests – equity.................. 4
–
–
4
Less: carrying value of HSBC’ s existing
interest in MLHSBC (note i above) (62 )
–
–
(62)
Net assets acquired...................................... 213 (558) (350) (695)
Goodwill attributable:.................................
– subsidiaries (Note 24) ............................. 1,977
– joint ventures (Note 21) .......................... 15
1,992
Total consideration including costs of
acquisition ............................................... 1,297
The fair value adjustments in the above table represent the following:
Revaluations, reflecting the recognition of:
– the fair value of financial instruments acquired;
– liabilities under pension and other post-retirement benefit schemes; and
– recognition of deferred tax benefits.
Accounting policy alignments reflecting:
– introduction of HSBC’ s criteria for raising provisions against doubtful loans;
– introduction of HSBC’ s policy in relation to the depreciation of fixed assets; and
– HSBC’ s criteria for recognising deferred tax.