HSBCA Beneficiary of Global Standards

As one of the world's largest banks, HSBC Holdings plc ("HSBC") has been a vocal supporter

of the global move toward IFRS. Based in London, and with subsidiaries located around the

globe, HSBC's support not only reflects its responsibility to prepare consolidated, global

financial statements, but also its role as a major institutional investor (i.e., a user

of global financial statements). Figure 12-1 illustrates the global nature of HSBC's organization, with offices in 67 countries and territories across the globe. The following figure, Figure 12-2, illustrates several of the international stock exchanges on which shares of the parent company, HSBC Holdings plc are listed. HSBC's shares are held by approximately 200,000 shareholders in 131 countries and territories around the world.

1. Describe how HSBC and its subsidiaries might have prepared their individual country finan-cial statements before the widespread acceptance/adoption of IFRS.
2. Considering the profile of HSBC provided in the preceding pages, explainwhy you would expect this company to be an advocate for a single set of global financialreporting standards.