HSBC 2010 Annual Report Download - page 316

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
16 – Fair values of financial instruments carried at fair value
314
Reconciliation of fair value measurements in Level 3 of the fair value hierarchy
The following table provides a reconciliation of the movement between opening and closing balances of Level 3
financial instruments, measured at fair value using a valuation technique with significant unobservable inputs:
Movement in Level 3 financial instruments
Assets Liabilities
Available
for sale
Held for
trading
Designated
at fair value
through
profit or loss Derivatives
Held for
trading
Designated
at fair value
through
profit or loss Derivatives
US$m US$m US$m US$m US$m US$m US$m
2010
At 1 January ...................................... 10,214 6,420 1,224 4,453 8,774 507 5,192
Total gains/(losses) recognised in
profit or loss ................................. 345 158 63 (675) 166 (11) (240)
Total gains/(losses) recognised in
other comprehensive income1 ...... 618 (101) (36) (110) (157) 74 93
Purchases .......................................... 3,708 858 81 – (356) – –
New issuances ................................... – – – – 4,025 – –
Sales .................................................. (2,461) (1,543) (8) – – – –
Settlements ........................................ (1,032) 1 (22) 64 (948) – (820)
Transfers out ..................................... (7,065) (629) (894) (669) (1,750) – (1,003)
Transfers in ....................................... 3,910 525 179 898 1,639 – 584
At 31 December ................................ 8,237 5,689 587 3,961 11,393 570 3,806
Total gains/(losses) recognised in
profit or loss relating to assets and
liabilities held on 31 December: 113 116 17 268 180 (14) 361
– net interest income ................... 89 – – – – – –
– trading income excluding net
interest income ......................... – 98 –268 198 – 361
– net interest income on trading
activities ................................... – 18 – – (18) – –
– net income/(expense) from
other financial instruments
designated at fair value ............ – –17 –– (14) –
– dividend income ....................... 24 – – – – – –
2009
At 1 January ...................................... 9,116 7,561 460 9,883 6,509 – 3,805
Total gains/(losses) recognised in
profit or loss ................................. (260) (730) 97 (5,275) (107) (3) (1,372)
Total gains recognised in other
comprehensive income1 ................ 617 85 – 119 301 10 94
Purchases .......................................... 1,785 1,598 260 – 22 – –
New issuances ................................... – – – – 2,522 500 –
Sales .................................................. (806) (2,166) (13) – – – –
Settlements ........................................ (1,059) (295) (6) (104) (1,266) – (206)
Transfers out ..................................... (3,043) (1,077) – (1,057) (537) – (620)
Transfers in ....................................... 3,864 1,444 426 887 1,330 – 3,491
At 31 December ................................ 10,214 6,420 1,224 4,453 8,774 507 5,192
Total gains/(losses) recognised in
profit or loss relating to assets and
liabilities held on 31 December: (371) (596) 98 (3,753) (136) (3) (135)
– net interest income ................... (364) – – – – – –
– trading income excluding net
interest income ......................... – (640) 98 (3,753) (135) – (135)
– net interest income on trading
activities ................................... – 44 – – (1) – –
– gains less losses from financial
investments ............................... (9) – – – – – –
– net income/(expense) from
other financial instruments
designated at fair value ............ – – – – – (3) –
– dividend income ....................... 2 – – – – – –
1 Included in ‘Available-for-sale investments: Fair value gains/(losses)’ and ‘Exchange differences’ in the consolidated statement of
comprehensive income.