HSBC 2012 Annual Report Download - page 514

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
44 – Related party transactions
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state law. Based on the facts currently known, it is not practicable at this time for HSBC to predict the resolution of
these private lawsuits, including the timing and potential impact on HSBC.
44 Related party transactions
Related parties of the Group and HSBC Holdings include subsidiaries, associates, joint ventures, post-employment
benefit plans for HSBC employees, Key Management Personnel, close family members of Key Management
Personnel and entities which are controlled or jointly controlled by Key Management Personnel or their close family
members.
Key Management Personnel are defined as those persons having authority and responsibility for planning, directing
and controlling the activities of HSBC Holdings, being the Directors and Group Managing Directors of HSBC
Holdings.
Compensation of Key Management Personnel
HSBC
2012 2011 2010
US$m US$m US$m
Short-term employee benefits ..................................................................................... 37 34 39
Post-employment benefits .......................................................................................... 1 2 3
Other long-term employee benefits ............................................................................ 10 7 1
Share-based payments ................................................................................................ 43 53 49
91 96 92
Transactions, arrangements and agreements involving related parties
Particulars of advances (loans and quasi-loans), credits and guarantees entered into by subsidiaries of HSBC
Holdings during 2012 with Directors, disclosed pursuant to section 413 of the Companies Act 2006, are shown
below:
At 31 December
2012 2011
US$m US$m
Advances and credits ................................................................................................................................ 7 8
Particulars of transactions with related parties, disclosed pursuant to the requirements of IAS 24, are shown below.
The disclosure of the year-end balance and the highest amounts outstanding during the year in the table below is
considered to be the most meaningful information to represent the amount of the transactions and the amount of
outstanding balances during the year.
2012 2011
Balance at
31 December
Highest
amounts
outstanding
during year
Balance at
31 December
Highest
amounts
outstanding
during year
US$m US$m US$m US$m
Key Management Personnel1
Advances and credits .................................................................... 153 242 112 120
Guarantees .................................................................................... 8 12 12 12
1 Includes Key Management Personnel, close family members of Key Management Personnel and entities which are controlled or jointly
controlled by Key Management Personnel or their close family members.
Some of the transactions were connected transactions, as defined by the Rules Governing The Listing of Securities on
The Stock Exchange of Hong Kong Limited but were exempt from any disclosure requirements under the provisions
of those rules. The above transactions were made in the ordinary course of business and on substantially the same
terms, including interest rates and security, as for comparable transactions with persons of a similar standing or,
where applicable, with other employees. The transactions did not involve more than the normal risk of repayment or
present other unfavourable features.