HSBC 2012 Annual Report Download - page 422

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
8 – Auditors’ remuneration / 9 – Tax
420
Fees payable by HSBC to KPMG
2012 2011 2010
US$m
US$m
US$m
Fees for HSBC Holdings’ statutory audit1 ................................................................. 13.2 12.7 11.8
– relating to current year ....................................................................................... 12.8 12.4 11.8
– relating to prior year ........................................................................................... 0.4 0.3 –
Fees for other services provided to HSBC ................................................................. 67.3 74.4 66.5
Audit of HSBC’s subsidiaries2 ............................................................................... 34.0 36.1 37.3
Audit-related assurance services3 ........................................................................... 23.6 25.7 20.8
Taxation-related services:
– taxation compliance services ......................................................................... 2.1 2.8 1.5
– taxation advisory services .............................................................................. 1.3 1.5 0.9
Other assurance services ........................................................................................ 1.1 1.3 1.4
Other non-audit services4 ....................................................................................... 5.2 7.0 4.6
Total fees payable ....................................................................................................... 80.5 87.1 78.3
1 Fees payable to KPMG for the statutory audit of the consolidated financial statements of HSBC and the separate financial statements of
HSBC Holdings. They include amounts payable for services relating to HSBC Holdings’ subsidiaries consolidation returns which are
clearly identifiable as being in support of the Group audit opinion, with effect from 1 January 2012. Previously these fees were included
in ‘Fees for other services provided to HSBC’. Comparative information has been updated accordingly. The adjustment reduced ‘Fees
for other services provided to HSBC’ and increased ‘Fees for HSBC Holdings’ statutory audit’ by US$11.0m in 2012 (2011: US$10.5m;
2010: US$9.4m). There was no effect on basic or diluted earnings per share following the change.
2 Fees payable for the statutory audit of HSBC’s subsidiaries financial statements.
3 Including services for assurance and other services that relate to statutory and regulatory filings, including comfort letters and interim
reviews.
4 Including valuation and actuarial services, translation services, ad-hoc accounting advice, review of financial models, advice on IT
security and business continuity, corporate finance transactions and performing agreed-upon IT testing procedures.
No fees were payable by HSBC to KPMG for the following types of services: internal audit services, services related
to litigation and recruitment and remuneration.
Fees payable by HSBC’s associated pension schemes to KPMG
No fees were payable by HSBC’s associated pension schemes to KPMG for the following types of services: audit
related assurance services, internal audit services, other assurance services, services related to corporate finance
transactions, valuation and actuarial services, litigation, recruitment and remuneration, and information technology.
In addition to the above, KPMG estimate they have been paid fees of US$3.3m (2011: US$8.6m; 2010: US$14.9m)
by parties other than HSBC but where HSBC is connected with the contracting party and therefore may be involved
in appointing KPMG. These fees arise from services such as auditing mutual funds managed by HSBC and reviewing
the financial position of corporate concerns which borrow from HSBC.
Fees payable to KPMG for non-audit services for HSBC Holdings are not disclosed separately because such fees are
disclosed on a consolidated basis for HSBC Group.
2012 2011 2010
US$000 US$000 US$000
Audit of HSBC’s associated pension schemes ........................................................... 256 248 384
Taxation-related services ............................................................................................ – 11 –
– taxation compliance services ............................................................................. – – –
– taxation advisory services .................................................................................. – 11 –
Total fees payable ....................................................................................................... 256 259 384