HSBC 2005 Annual Report Download - page 345

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(c) Reconciliation of financial performance for the year ended 31 December 2004 and financial position at 31 December 2004 and 1 January 2004
reported under UK GAAP and IFRSs Consolidated income statement for the year ended 31 December 2004 Adjustments to conform HSBC’s UK GAAP income statement for the year ended 31 December 2004 to its accounting policies under IFRSs are set out below:
UK GAAP
Retirement
benefits
Goodwill
amortisation
under UK
GAAP
Other
goodwill
adjustments
Software
capitalisation
Share-
based
payments Leases Insurance
Consolid-
ation Property Other
IFRSs
(except
IAS 32/39
and IFRS 4)
US$m US$m US$m US$m US$m US$m US$m US$m US$m US$m US$m US$m
Interest receivable ................... 50,203–––– ––61254–(47)50,471
Interest payable ....................... (19,179) –––– ––4(245)–48(19,372)
Net interest income ................ 31,024–––– ––659–131,099
Fees and commissions
receivable ............................. 15,877–––– ––(3)(31)–(171)15,672
Fees and commissions payable.(2,784)–––– ––(356)(9)–195(2,954)
Dealing profits ......................... 2,566–––– –––73–(20)2,619
Dividend income ..................... 601–––– –––25–(4)622
Net investment income on
assets backing policyholder liabilities ......... ––––– ––1,012–––1,012
Net earned insurance
premiums ............................ ––––– ––5,368–––5,368
Other operating income ........... 3,303–––– ––(1,482)2190(151)1,781
Operating income .................. 50,587–––– ––4,6048890(150)55,219
Administrative expenses .......... (24,183) (170) – (39) 329 (152) – (49) 15 (7) 32 (24,224) Depreciation and amortisation . (3,506) – 1,814 (57) (304) – (90) – – 4 (86) (2,225)
Operating profit before
provisions ........................... 22,898 (170) 1,814 (96) 25 (152) (90) 4,555 103 87 (204) 28,770
Provision for bad and
doubtful debts ...................... (6,357) –––– –––––162(6,195)
Provision for contingent
liabilities and commitments .(27)–––– –––––(44)(71)
Net insurance claims ............... ––––– ––(4,565)(70)––(4,635)
Amounts written off fixed
asset investments ................. ––––– –––4–(2)2
Operating profit .................... 16,514 (170) 1,814 (96) 25 (152) (90) (10) 37 87 (88) 17,871