HSBC 2013 Annual Report Download - page 101

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99
14 Transfers of financial assets not qualifying for derecognition
The bank enters into transactions in the normal course of business by which it transfers recognized financial assets
directly to third parties or to SPEs.
Derecognition occurs when the bank transfers its contractual right to receive cash flows from the financial assets, or
retains the right but assumes an obligation to pass on the cash flows from the asset, and transfers substantially all the
risks and rewards of ownership. The risks typically include credit, interest rate, prepayment and other price risks.
The following table analyzes the carrying amount of financial assets as at 31 December that did not qualify for
derecognition during the year and their associated financial liabilities:
Financial assets and associated liabilities transferred not qualifying for derecognition are as follows:
2013 2012
Fair value
of assets
$m
Fair
value of
associated
liabilities
$m
Carrying
amount of
assets
$m
Carrying
amount of
associated
liabilities
$m
Carrying
amount of
assets
$m
Carrying
amount of
associated
liabilities
$m
Nature of transaction
Assets securitized .. 4,242 4,282 4,163 4,230 6,412 6,525
Mortgages sold
with recourse ... 1,887 1,887 1,881 1,881 1,995 1,995
Repurchase
agreements .... 1,487 1,487 1,487 1,487 3,025 3,025
7,616 7,656 7,531 7,598 11,432 11,545
In addition to assets securitized as noted above, the bank has also created $1,084m (2012: $1,093m) of securitized assets
which remain on the bank’s balance sheet and have not been transferred.
15 Property, plant and equipment
Freehold
land and
buildings
$m
Leasehold
improvements
$m
Equipment,
fixtures
and fittings
$m
Total
$m
Cost
At 1 January 2013 ................................................. 3 153 100 256
Additions at cost ................................................... – 18 14 32
Disposals and write-offs ........................................ – (8) (17) (25)
At 31 December 2013 ................................................ 3 163 97 263
Accumulated depreciation and impairment
At 1 January 2013 ................................................. (2) (62) (52) (116)
Depreciation charge for the year ........................... – (16) (18) (34)
Disposals and write-offs ........................................ – 7 17 24
At 31 December 2013 ................................................ (2) (71) (53) (126)
Net carrying amount at 31 December 2013 ............ 1 92 44 137