Holiday Inn 2006 Annual Report Download - page 45

Statement of Directors’ responsibilities and Independent auditor’s report to the members
In relation to the Group financial statements
We have audited the Group financial statements of InterContinental
Hotels Group PLC for the year ended 31 December 2006 which
comprise the Group income statement, Group statement of
recognised income and expense, Group cash flow statement, Group
balance sheet, corporate information and accounting policies and
the related notes 1 to 35. These Group financial statements have
been prepared under the accounting policies set out therein.
We have reported separately on the parent company financial
statements of InterContinental Hotels Group PLC for the year
ended 31 December 2006 and on the information in the
Remuneration Report that is described as having been audited.
This report is made solely to the Company’s members, as a body,
in accordance with Section 235 of the Companies Act 1985. Our
audit work has been undertaken so that we might state to the
Company’s members those matters we are required to state to
them in an auditor’s report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the Company and the Company’s members
as a body, for our audit work, for this report, or for the opinions
we have formed.
Respective responsibilities of Directors and auditors
The Directors’ responsibilities for preparing the Annual Report
and the Group financial statements in accordance with applicable
United Kingdom law and International Financial Reporting
Standards (IFRS) as adopted by the European Union are set out
in the Statement of Directors’ Responsibilities.
Our responsibility is to audit the Group financial statements in
accordance with relevant legal and regulatory requirements and
International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the Group financial
statements give a true and fair view and whether the Group financial
statements have been properly prepared in accordance with the
Companies Act 1985 and Article 4 of the IAS Regulation. We also
report to you whether in our opinion the information given in the
Directors’ Report is consistent with the financial statements. The
information given in the Directors’ Report includes that specific
information presented in the Operating and Financial Review that
is cross referred from the Business review and future developments
and employees sections of the Directors’ Report.
In addition we report to you if, in our opinion we have not received
all the information and explanations we require for our audit, or if
information specified by law regarding directors’ remuneration and
other transactions is not disclosed.
We review whether the Corporate Governance Statement reflects
the Company’s compliance with the nine provisions of the Combined
Code specified for our review by the Listing Rules of the Financial
Services Authority, and we report if it does not. We are not required
to consider whether the Board’s statements on internal control
cover all risks and controls, or form an opinion on the effectiveness
of the Group’s corporate governance procedures or its risk and
control procedures.
We read other information contained in the Annual Report and
consider whether it is consistent with the audited Group financial
statements. The other information comprises only the Highlights,
Chairman’s Statement, Chief Executive’s Review, Operating and
Financial Review, the Board and Executive Committee Statement,
Directors’ Report, Corporate Governance Statement, Audit
Committee Report and the Remuneration Report. We consider the
implications for our report if we become aware of any apparent
misstatements or material inconsistencies with the Group financial
statements. Our responsibilities do not extend to any other
information.
Basis of audit opinion
We conducted our audit in accordance with International Standards
on Auditing (UK and Ireland) issued by the Auditing Practices
Board. An audit includes examination, on a test basis, of evidence
relevant to the amounts and disclosures in the Group financial
statements. It also includes an assessment of the significant
estimates and judgements made by the Directors in the preparation
of the Group financial statements, and of whether the accounting
policies are appropriate to the Group’s circumstances, consistently
applied and adequately disclosed.
We planned and performed our audit so as to obtain all the
information and explanations which we considered necessary in
order to provide us with sufficient evidence to give reasonable
assurance that the Group financial statements are free from
material misstatement, whether caused by fraud or other
irregularity or error. In forming our opinion we also evaluated the
overall adequacy of the presentation of information in the Group
financial statements.
Opinion
In our opinion:
• the Group financial statements give a true and fair view, in
accordance with IFRS as adopted by the European Union, of the
state of the Group’s affairs as at 31 December 2006 and of its
profit for the year then ended;
• the Group financial statements have been properly prepared in
accordance with the Companies Act 1985 and Article 4 of the
IAS Regulation; and
• the information given in the Directors’ Report is consistent with
the Group financial statements.
Ernst & Young LLP,
Registered auditor, London.
19 February 2007
Independent auditor’s report to the members
of InterContinental Hotels Group PLC
IHG Group financial statements and accounting policies 43