HSBC 2005 Annual Report Download - page 327

325
2004
Other reserves
Called up
share
capital
Share
premium
Retained
earnings1
Foreign
exchange
Reserve2
Share-
based
payment
reserve
Merger
reserve3
Total
share-
holders’
equity
Minority
interests
Total
equity
US$m US$m US$m US$m US$m US$m US$m US$m US$m
At 1 January ..................................................................................................................... 5,481 4,406 41,673 – 1,130 21,058 73,748 11,105 84,853
Shares issued/redeemed in connection with the HSBC Finance
8.875 per cent Adjustable Conversion-Rate Equity Security Units .............................. 1 – – – (1) – – – –
Shares issued under employee share plans ....................................................................... 25 555 – – – – 580 – 580
Shares issued in lieu of dividends and amounts arising thereon ....................................... 80 (80) 2,607 – – – 2,607 – 2,607 Profit for the year attributable to shareholders ................................................................. – – 12,918 – – – 12,918 – 12,918
Dividends to shareholders of the parent company ............................................................ – – (6,914) – – – (6,914) – (6,914) Own shares adjustments ................................................................................................... – – (842) – 235 – (607) – (607) Actuarial losses on defined benefit plans4 ........................................................................ – – (709) – – – (709) – (709)
Exchange differences ....................................................................................................... – – – 3,215 – – 3,215 – 3,215 Charge to the income statement in respect of equity settled
share-based payment instructions ................................................................................ – – – – 450
–
450 – 450
Exercise of HSBC share options ...................................................................................... – – 380 – (465) – (85) – (85) Tax on items taken directly to or transferred from equity ................................................ – – 319 – – – 319 – 319
Profit attributable to minority interests ............................................................................. – – – – – – – 1,340 1,340
Dividends to minority interests ........................................................................................ – – – – – – – (1,194) (1,194) Exchange differences, minority interests .......................................................................... – – – – – – – 505 505
Increase in minority interest stake and other .................................................................... – – – – – – – 1,919 1,919
At 31 December ............................................................................................................... 5,587 4,881 49,432 3,215 1,349 21,058 85,522 13,675 99,197
1Retained earnings include 36,255,999 (US$1,424 million) of own shares, held within HSBC’s insurance business; its retirement funds for the benefit of policyholders or beneficiaries within employee
trusts for the settlement of shares expected to be delivered under employee share schemes or bonus plans, and the market-making activities in Global Markets.
2Net exchange differences arising on the retranslation of amounts recognised in Retained earnings. 3Statutory share premium relief under Section 131 of the Companies Act 1985 was taken in respect of the acquisition of HSBC Bank plc in 1992, HSBC France in 2000 and HSBC Finance Corporation
in 2003 and the shares issued were recorded at their nominal value only. In HSBC’s consolidated accounts the fair value difference of US$8,290 million in respect of CCF and US$12,768 million in respect of HSBC Finance Corporation is a merger reserve.
4In addition, actuarial losses of US$22 million were recorded in minority interests.
Cumulative goodwill amounting to US$5,138 million has been charged against reserves in respect of acquisitions of subsidiaries prior to 1 January 1998, including US$3,469 million charged against the merger reserve arising on the acquisition of HSBC Bank plc. The balance of US$1,669 million has been charged against retained earnings.