Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 159

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 159
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 comparisons. It is computed by including the operating income statement results of each business in any period for which there are no results in the comparative period. We consider the monthly impacts of distorting income statement results when calculating the impact of strategic transactions. For a reconciliation of ‘constant currency revenue excluding notable items and the impact of strategic transactions’ and ‘constant currency profit before tax excluding notable items and the impact of strategic transactions’ to reported revenue and reported profit respectively, see page 131 . Foreign currency translation differences Foreign currency translation differences reflect the movements of the US dollar against most major currencies during 2024 . We exclude them to derive constant currency data, allowing us to assess balance sheet and income statement performance on a like-for-like basis and to better understand the underlying trends in the business. Foreign currency translation differences for 2024 are computed by retranslating into US dollars for non-US dollar branches, subsidiaries, joint ventures and associates: – the income statements for 2023 and 2022 at the average rates of exchange for 2024 ; and – the balance sheets at 31 December 2023 and 31 December 2022 at the prevailing rates of exchange on 31 December 2024 . No adjustment has been made to the exchange rates used to translate foreign currency-denominated assets and liabilities into the functional currencies of any HSBC branches, subsidiaries, joint ventures or associates. The constant currency data of our operations in Argentina and Türkiye has not been adjusted further for the impacts of hyperinflation. When reference is made to foreign currency translation differences in tables or commentaries, comparative data reported in the functional currencies of HSBC’s operations have been translated at the appropriate exchange rates applied in the current period on the basis described above.

| 86 | HSBC Holdings plcAnnual Report on Form 20-F |

Financial summary

Impact of hyperinflationary accounting During 2024, we continued to treat Argentina and Türkiye as hyperinflationary economies for accounting purposes. The impact of applying IAS 29 ‘Financial Reporting in Hyperinflationary Economies’ and the hyperinflation provisions of IAS 21 ’The Effects of Changes in Foreign Exchange Rates’ for our operations in both Argentina and Türkiye was a decrease in the Group’s profit before tax of $917m (2023: $1,297m), comprising a decrease in revenue, including loss on net monetary position, of $840m (2023: $1,586m) and an increase in ECL and operating expenses of $77m