Holiday Inn 2003 Annual Report Download - page 47

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45
InterContinental Hotels Group PLC*
Soft Dis- Total
Hotels Drinks Total continued* Group
19 TANGIBLE FIXED ASSETS £m £m £m £m £m
Cost or valuation:
At 30 September 2002 4,362 408 4,770 3,722 8,492
Exchange and other adjustments 2 4617
Additions 314 66 380 81 461
Disposals (281) (27) (308) (64) (372)
Separation of MAB – – – (3,740) (3,740)
Impairment (22) – (22) – (22)
At 31 December 2003 4,375 451 4,826 – 4,826
Depreciation:
At 30 September 2002 467 188 655 196 851
Exchange and other adjustments (7) 1 (6) – (6)
Provided 186 50 236 54 290
On disposals (37) (24) (61) (40) (101)
Separation of MAB – – – (210) (210)
Impairment 51 – 51 – 51
At 31 December 2003 660 215 875 – 875
Net book value:
At 31 December 2003 3,715 236 3,951 – 3,951
At 30 September 2002 3,895 220 4,115 3,526 7,641
* InterContinental Hotels Group PLC relates to continuing operations. Discontinued operations relate to Mitchells & Butlers plc.
Tangible fixed assets have been written down in total by £73m following an impairment review of the hotel estate. The impairment
has been measured by reference to the value of income-generating units, using either the higher of value in use or estimated
recoverable amount. The discount rate used for value in use calculations was 11.4%.
Properties
Properties, comprising land, buildings and certain fixtures, fittings and equipment, are included above at cost or valuation, less
depreciation as required. The transitional rules of FRS 15 have been followed, permitting the carrying values of properties as at
1 October 1999 to be retained.
The most recent valuation of properties was undertaken in 1999 and covered all properties then owned by the Group other than
hotels acquired or constructed in that year and leasehold properties having an unexpired term of 50 years or less. This valuation
was undertaken by external Chartered Surveyors and internationally recognised valuers (Jones Lang LaSalle Hotels) in
accordance with the Appraisal and Valuation Manual of the Royal Institution of Chartered Surveyors. The basis of valuation
was predominantly existing use value and had regard to trading potential.
Historical cost
The comparable amounts under the historical cost convention for properties would be:
Group
31 Dec 30 Sept
2003 2002
£m £m
Cost 2,931 4,998
Depreciation (177) (199)
Net book value 2,754 4,799