Business
Half Year Report - 2023 Interim Report - Part 2
Half Year Report - 2023 Interim Report - Part 2.
About this update from Hsbc Holdings Plc
[{"type":"text","content":"\n\n\n\n\nFinancial summary\n\n\n\n\n\n\nContents\n\n\n\n\n\n\n\n\n\n\n\n28\n\n\nChanges to presentation from 1 January 2023\n\n\n\n\n28\n\n\nUse of alternative performance measures\n\n\n\n\n29\n\n\nSummary consolidated income statement\n\n\n\n\n30\n\n\nDistribution of results by global business and legal entity\n\n\n\n\n31\n\n\nIncome statement commentary\n\n\n\n\n31\n\n\nNet interest income\n\n\n\n\n34\n\n\nTax expense\n\n\n\n\n35\n\n\nSummary consolidated balance sheet\n\n\n\n\n37\n\n\nBalance sheet commentary compared with 31 December 2022\n\n\n\n \nChanges to presentation from 1 January 2023\nChanges to our reporting framework\nOn 1 January 2023, we updated our financial reporting framework. We no longer report 'adjusted' results, which exclude the impact of both foreign currency translation differences and significant items. Instead, we compute constant currency performance by adjusting comparative reported results only for the effects of foreign currency translation differences between the relevant periods. This will enable users to understand the impact of foreign currency translation differences on the Group's performance. We separately disclose 'notable items', which are components of our income statement that management would consider as outside the normal course of business and generally non-recurring in nature. While our primary segmental reporting by global business remains unchanged, effective from 1 January 2023, the Group changed the supplementary presentation of results from geographical regions to main legal entities to better reflect the Group's structure.\nIFRS 17 'Insurance Contracts'\nOn 1 January 2023, HSBC adopted IFRS 17 'Insurance Contracts'. As required by the standard, the Group applied the requirements retrospectively with comparative data previously published under IFRS 4 'Insurance Contracts' restated from the 1 January 2022 transition date. Under IFRS 17 there is no present value of in-force business ('PVIF') asset recognised up front. Instead the measurement of the insurance contract liability takes into account fulfilment cash flows and a contractual service margin ('CSM') representing the unearned profit. In contrast to the Group's previous IFRS 4 accounting where profits are recognised up front, under IFRS 17 they are deferred and systematically recognised in revenue as services are...