HSBC 2009 Annual Report Download - page 411

409
2009 2008
US$m US$m
Deferred tax assets
Retirement benefits .................................................................................................................................. 1,772 927
Loan impairment allowances ................................................................................................................... 6,363 5,891
Unused tax losses ..................................................................................................................................... 164 282
Accelerated capital allowances ................................................................................................................ 215 99
Available-for-sale investments ................................................................................................................ 68 518
Cash flow hedges ..................................................................................................................................... 229 1,145
Share-based payments ............................................................................................................................. 196 245
Other short-term temporary differences .................................................................................................. 1,778 457
10,785 9,564
Deferred tax liabilities
Assets leased to customers ...................................................................................................................... 1,121 916
Revaluation of property ........................................................................................................................... 399 374
Accelerated capital allowances ................................................................................................................ 129 167
Other short-term temporary differences .................................................................................................. 564 419
Provision for tax on profit remitted from overseas ................................................................................. – 78
Available-for-sale investments ................................................................................................................ 340 121
Cash flow hedges ..................................................................................................................................... 91 280
Fee income ............................................................................................................................................... 1,080 930
Other temporary differences .................................................................................................................... 278 1,123
4,002 4,408
Net deferred tax assets before offsetting balances within countries ....................................................... 6,783 5,156
HSBC presents deferred tax balances in the consolidated balance sheet after offsetting asset and liability balances
where HSBC has the legal right to set off, and intends to settle on a net basis, as follows:
2009 2008
US$m US$m
Deferred tax assets ................................................................................................................................... 8,620 7,011
Deferred tax liabilities ............................................................................................................................. (1,837) (1,855)
6,783 5,156
The deferred tax assets are recognised in respect of the following countries:
2009 2008
US$m US$m
US ............................................................................................................................................................ 5,110 5,073
Brazil ........................................................................................................................................................ 1,289 850
Mexico ..................................................................................................................................................... 620 456
UK ............................................................................................................................................................ 395 –
Other ........................................................................................................................................................ 1,206 632
8,620 7,011
The amount of temporary differences, unused tax losses and unused tax credits for which no deferred tax asset is
recognised in the balance sheet is US$2,068 million (2008: US$1,651 million). Of this amount, US$502 million
(2008: US$1,003 million) has no expiry date and US$972 million (2008: US$648 million) is scheduled to expire
within 10 years (2008: 10 years). The amounts for 2008 have been restated as a result of temporary differences,
unused tax losses and unused tax credits not previously reported, resulting in an increase in the unrecognised deferred
tax asset of US$773 million.
Deferred tax of US$94 million (2008: nil) has been provided in respect of distributable reserves of associates that, on
distribution, would attract withholding tax.
Deferred tax is not recognised in respect of the Group’s investments in subsidiaries and branches where remittance
is not contemplated, and for those associates and interests in joint ventures where it has been determined that no
additional tax will arise. The aggregate amount of temporary differences associated with investments where no
deferred tax liability is recognised is nil (2008: US$38,443 million; 2007: US$29,947 million). Following the change
in the UK tax treatment of dividends on 1 July 2009, no UK tax is expected to arise on distributions from group
entities and no temporary difference exists except where withholding tax or other foreign tax could arise on the