HSBC 2015 Annual Report Download - page 418

Notes on the Financial Statements (continued)
22 – Prepayments / 23 – Assets held for sale and disposal groups / 24 – Trading liabilities
HSBC HOLDINGS PLC
416
22 Prepayments, accrued income and other assets
2015 2014
$m $m
Prepayments and accrued income 7,765 10,554
Bullion 11,501 15,726
Endorsements and acceptances 9,149 10,775
Reinsurers’ share of liabilities under insurance contracts (Note 28) 1,378 1,032
Employee benefit assets (Note 6) 5,272 5,028
Other accounts 9,410 13,882
Property, plant and equipment 9,923 10,532
At 31 December 54,398 67,529
Prepayments, accrued income and other assets included $25,310m (2014: $33,889m) of financial assets, the majority of which
were measured at amortised cost.
23 Assets held for sale and liabilities of disposal groups held for sale
Accounting policy
Assets held for sale
Assets and liabilities of disposal groups and non-current assets are classified as held for sale when their carrying amounts will be recovered
principally through sale rather than through continuing use. Held-for-sale assets and liabilities are measured at the lower of their carrying
amount and fair value less cost to sell, except for those assets and liabilities that are not within the scope of the measurement requirements
of IFRS 5 ‘Non-current Assets Held for Sale and Discontinued Operations’.
Immediately before the initial classification as held for sale, the carrying amounts of the relevant assets and liabilities are measured in
accordance with applicable IFRSs. On subsequent remeasurement of a disposal group, the carrying amounts of any assets and liabilities that
are not within the scope of the measurement requirements of IFRS 5, but are included in a disposal group classified as held for sale, are
remeasured under applicable IFRSs before the fair value less costs to sell of the disposal group is determined.
2015 2014
$m $m
Held for sale at 31 December
Disposal groups 41,715 6,883
Non-current assets held for sale 2,185 764
Total assets 43,900 7,647
Liabilities of disposal groups 36,840 6,934
Disposal groups
Brazil
In the first half of 2015, we announced the plan to sell our operations in Brazil. At 31 December 2015, the sale was considered
highly probable and therefore the assets and liabilities of the disposal group were classified as held for sale. The disposal group
includes the assets and liabilities expected to be sold plus allocated goodwill as set out in the table on page 417.
The disposal group is measured at its carrying amount at 31 December 2015, which is lower than its fair value less cost to sell.
The carrying amount includes a $1.3bn deferred tax asset and $1.3bn of allocated goodwill (see Note 20). The assets and
liabilities of the disposal group have been reclassified from their individual lines in the consolidated balance sheet and are
presented in separate ‘Held for sale’ lines at 31 December 2015. There is no change to the comparative balance sheet
presentation and there is no separate presentation in the income statement.
At 31 December 2015, there were no significant accounting implications in respect of the planned sale although this may evolve
as it progresses. The disposal group represents a foreign operation and when the disposal completes the cumulative amount
of associated exchange differences previously recognised in other comprehensive income will be reclassified to the income
statement. At 31 December 2015, there was a cumulative loss of $2.6bn in the Group’s foreign exchange reserve attributable
to the Brazilian operations.