Annual Report 2011 - Hong Kong Monetary Authority

Dividends are eliminated through reserves. The enti tlement
of third-party shareholders (minority interests) to equity and
net income is disclosed separately.
Capital consolidation
The capital invested in the Group’s banks and investment,
asset management and real estate companies is consolidated
in accordance with the purchase method.
The positive or negative differences arising from the first
consolidation are disclosed under “Intangible assets” and
“Retained earnings” respectively.
The value of the Bank’s treasury stock, or own shares in
BPER SA, is deducted from capital and reserves and reported
under “Additional paid-in capital and other reserves”
at the shares’ cost price. Dividends and the proceeds of
subsequent sales are directly allocated to “Additional paidin
capital and other reserves”.
Newly acquired companies
As a rule, newly acquired companies are included in the
consolidated financial statements in the year of their acquisition.
Closing date
for consolidated accounts
The consolidated companies all end their financial year on
31 December except for Priadvisory Holding SA, Prifund
Conseil SA and Prifund Conseil (Bahamas) SA whose
financial years conclude on 30 November.
FINANCIAL REPORT CONSOLIDATED ACCOUNTS 67