Holiday Inn 2006 Annual Report Download - page 69

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Notes to the Group financial statements
14 Investments in associates
The Group holds six investments (2005 eight) accounted for as associates. The following table summarises the financial information
of the associates.
2006 2005
£m £m
Share of associates’ balance sheet
Current assets 24
Non-current assets 50 93
Current liabilities (5) (9)
Non-current liabilities (15) (46)
Net assets 32 42
Share of associates’ revenue and profit
Revenue 22 18
Net profit 21
Related party transactions
Revenue from related parties 43
Amounts owed by related parties 12
2006 2005
15 Other financial assets £m £m
Non-current
Equity securities available-for-sale 48 41
Other 48 72
96 113
Current
Equity securities available-for-sale 9104
Derivatives 42
13 106
Available-for-sale financial assets, which are held on the balance sheet at fair value, consist of equity investments in listed and unlisted
shares. The fair value of unlisted equity shares has been estimated using valuation guidelines issued by the British Venture Capital Association
and is based on assumptions regarding expected future earnings. Listed equity share valuation is based on observable market prices.
Other financial assets consist mainly of trade deposits made in the normal course of business. The deposits have been designated as
loans and receivables and are held at amortised cost.
Derivatives, including those within trade and other payables, are held on the balance sheet at fair value. The fair value is the estimated
amount that the Group could expect to receive on the termination of the agreement, taking into consideration interest and exchange rates
prevailing at the balance sheet date.
IHG Notes to the Group financial statements 67