HSBC 2008 Annual Report Download - page 340

HSBC HOLDINGS PLC
Financial Statements (continued)
HSBC Holdings > Changes in equity / Cash flow statement
338
HSBC Holdings statement of changes in total equity for the year ended 31 December 2008
2008 2007
US$m US$m
Called up share capital
At 1 January .................................................................................................................................. 5,915 5,786
Shares issued under employee share plans ................................................................................... 20 17
Shares issued in lieu of dividends ................................................................................................. 118 112
At 31 December ............................................................................................................................ 6,053 5,915
Share premium account
At 1 January .................................................................................................................................. 8,134 7,789
Shares issued under employee share plans ................................................................................... 450 460
Shares issued in lieu of dividends and amounts arising thereon .................................................. (121) (115)
At 31 December ............................................................................................................................ 8,463 8,134
Other equity instruments
At 1 January .................................................................................................................................. – –
Capital securities issued1 ............................................................................................................... 2,133 –
At 31 December ............................................................................................................................ 2,133 –
Merger reserve and other reserves
At 1 January .................................................................................................................................. 28,942 28,942
Realisation of merger reserve2 ...................................................................................................... (3,601) –
At 31 December ............................................................................................................................ 25,341 28,942
Other reserves
Available-for-sale fair value reserve
At 1 January .................................................................................................................................. 482 246
Fair value changes taken to equity3 ............................................................................................... (356) 246
Tax on items taken directly to equity3 .......................................................................................... 64 (10)
At 31 December ............................................................................................................................ 190 482
Share-based payment reserve
At 1 January .................................................................................................................................. 1,968 2,111
Exercise and lapse of share options and vesting of share awards ................................................ (75) (751)
Cost of share-based payment arrangements .................................................................................. 14 29
Equity investments granted to employees of subsidiaries under employee share plans .............. 87 818
Other movements .......................................................................................................................... 1 (239)
At 31 December ............................................................................................................................ 1,995 1,968
Other paid-in capital
At 1 January .................................................................................................................................. 1,181 936
Exercise and lapse of share options .............................................................................................. 137 245
At 31 December ............................................................................................................................ 1,318 1,181
Total other reserves at 31 December ................................................................................................. 3,503 3,631
Retained earnings
At 1 January .................................................................................................................................. 14,209 10,588
Profit for the year attributable to shareholders ............................................................................. 7,644 9,499
Dividends to shareholders of the parent company ........................................................................ (11,301) (10,241)
Shares issued in lieu of dividends and amounts arising thereon .................................................. 3,596 4,354
Transfer from merger reserve ....................................................................................................... 3,601 –
Own shares adjustments ................................................................................................................ (647) 16
Tax on share based payments3 ...................................................................................................... (2) (7)
Exchange differences and other movements3 ............................................................................... (6) –
At 31 December4 ........................................................................................................................... 17,094 14,209
1 See footnote 5 of Note 38.
2 See footnote 4 of Note 38.
3 The total expense taken directly to equity during the year was US$300 million (2007: net income US$229 million).
4 Retained earnings include 36,995,330 (US$562 million) of own shares held to fund employee share plans (2007: 30,706,713,
US$554 million).
The accompanying notes on pages 340 to 447, the audited sections of the ‘Report of the Directors: Risk’ on pages 188 to 280, ‘Critical
accounting policies’ on pages 61 to 66 and ‘Impact of Market Turmoil’ on pages 144 to 187 form an integral part of these financial
statements.