Notes to the Financial Statements - HSBC Bangladesh

Note 4.8 indicates a change in accounting policy as gains or losses on revaluation of HFT securities were previouslyrecognised in the profit and loss account, but now gains or losses on revaluation of HFT securities which have not maturedas at the balance sheet date are recognised in Other Reserve as a part of equity. In accordance with BAS 8, AccountingPolicies, Changes in Accounting Estimates and Errors, Para 19(b) and 22(b) an entity is required to apply a change inaccounting policy retrospectively by adjusting the opening balance of each affected component of equity for the earliestperiod presented as if the new accounting policy had always been applied. As we did not hold any HFT securities as at 31December 2007, no retrospectively adjustment is required.