HSBC 2006 Annual Report Download - page 301

299
HSBC Holdings statement of changes in total equity for the year ended 31 December 2006
2006 2005
US$m US$m
Called up share capital
At 1 January .................................................................................................................................. 5,667 5,587
Shares issued in connection with the early settlement of HSBC Finance 8.875 per cent
Adjustable Conversion-Rate Equity Security Units .................................................................. 2 –
Shares issued under employee share plans ................................................................................... 38 28
Shares issued in lieu of dividends ................................................................................................. 79 52
At 31 December ............................................................................................................................ 5,786 5,667
Share premium account
At 1 January .................................................................................................................................. 6,896 4,881
Shares issued under employee share plans ................................................................................... 975 662
Shares issued in lieu of dividends and amounts arising thereon .................................................. (82) (52)
New share capital subscribed, net of costs ................................................................................... – 1,405
At 31 December ............................................................................................................................ 7,789 6,896
Merger reserve and other reserves
At 1 January and 31 December ..................................................................................................... 28,942 28,942
Other reserves
Available-for-sale fair value reserve
At 1 January .................................................................................................................................. 337 –
IFRSs transition adjustments at 1 January 20051 .......................................................................... – 464
Fair value changes taken to equity2 ............................................................................................... (121) (184)
Tax on items taken directly to equity2 .......................................................................................... 30 57
At 31 December ............................................................................................................................ 246 337
Share-based payment reserve
At 1 January .................................................................................................................................. 1,234 1,329
Exercise of HSBC share options ................................................................................................... (381) (328)
Charge to the income statement in respect of equity settled share-based
payment transactions ................................................................................................................. 58 12
Shares/options granted to employees of subsidiaries under employee share awards ................... 293 219
Other movements ........................................................................................................................... (2) 2
At 31 December ............................................................................................................................ 1,202 1,234
Other paid-in capital
At 1 January .................................................................................................................................. 650 411
Exercise of HSBC share options ................................................................................................... 286 239
At 31 December ............................................................................................................................ 936 650
Total other reserves at 31 December ................................................................................................. 2,384 2,221
Retained earnings
At 1 January .................................................................................................................................. 9,501 8,959
IFRSs transition adjustments at 1 January 20051 .......................................................................... – (317)
Profit for the year attributable to shareholders ............................................................................. 7,139 6,816
Dividends to shareholders of the parent company ........................................................................ (8,769) (7,750)
Amounts arising on shares in lieu of dividends ............................................................................ 2,528 1,811
Own shares adjustments ................................................................................................................ 157 87
Tax on share based payments ........................................................................................................ 9 –
Exchange differences and other movements2 ............................................................................... 23 (105)
At 31 December3 ........................................................................................................................... 10,588 9,501
1 For an explanation of the IFRSs transition adjustment at 1 January 2005, see Note 46 on the Financial Statements in the Annual Report
and Accounts 2005.
2 The total net expense taken directly to equity during the year was US$59 million (2005: US$232 million).
3 Retained earnings include 35,639,856 (US$544 million) of own shares held to fund employee share plans (2005: 49,217,589,
US$701 million).
The accompanying notes on pages 301 to 434, the audited sections of the ‘Report of the Directors: The Management of Risk’ on pages 165
to 247, and the ‘Critical accounting policies’ on pages 111 to 115 form an integral part of these financial statements.