Holiday Inn 2006 Annual Report Download - page 83

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Shares Unrealised
Equity Capital held by gains and Currency IHG
share redemption employee Other losses translation Retained shareholders’
capital reserve share trusts reserves reserve reserve earnings equity
28 IHG shareholders’ equity £m £m £m £m £m £m £m £m
At 1 January 2005 723 46 (22) 1,462 3 (12) (383) 1,817
Total recognised income and expense for the year ––––2031490541
Issue of ordinary sharesa4––––––4
Repurchase of sharesa(22) –––––(102) (124)
Transfer to capital redemption reserve – 22 ––––(22) –
Capital reorganisation (661) (68) – (2,990) – – 2,723 (996)
Proceeds from capital reorganisation ––4––––4
Issue of ordinary sharesb6––––––6
Repurchase of sharesb(1)–––––(82) (83)
Transfer to capital redemption reserve –1––––(1)–
Purchase of own shares by employee share trusts – – (29) ––––(29)
Release of own shares by employee share trusts – – 25 – – – (17) 8
Equity settled share-based cost ––––––1717
Equity dividends paid ––––––(81) (81)
At 31 December 2005 49 1 (22) (1,528) 23 19 2,542 1,084
Total recognised income and expense for the year ––––4(22) 427 409
Issue of ordinary sharesb20––––––20
Repurchase of sharesb(3)–––––(257) (260)
Transfer to capital redemption reserve –3––––(3)–
Purchase of own shares by employee share trusts – – (47) ––––(47)
Release of own shares by employee share trusts – – 52 – – – (37) 15
Equity settled share-based cost ––––––1818
Equity dividends paid ––––––(561) (561)
At 31 December 2006 66 4 (17) (1,528) 27 (3) 2,129 678
a Relates to the share capital of InterContinental Hotels Limited (formerly InterContinental Hotels Group PLC).
b Relates to the share capital of InterContinental Hotels Group PLC (formerly New InterContinental Hotels Group PLC).
Equity share capital
The balance classified as share capital includes the total net proceeds (both nominal value and share premium) on issue of the Company’s
equity share capital, comprising 113⁄7p shares.
Shares held by employee share trusts
Comprises £16.8m (2005 £21.7m) in respect of 1.7m (2005 2.9m) InterContinental Hotels Group PLC ordinary shares held by employee
share trusts, with a market value at 31 December 2006 of £21m (2005 £25m).
Other reserves
Comprises the revaluation reserve previously recognised under UK GAAP and the merger reserve.
Unrealised gains and losses reserve
This reserve records movements for available-for-sale financial assets to fair value and the effective portion of the cumulative net change
in the fair value of the cash flow hedging instruments related to hedged transactions that have not yet occurred.
The fair value of cash flow hedging instruments outstanding at 31 December 2006 was a £1m asset (2005 £1m).
Currency translation reserve
This reserve records the movement in exchange differences arising from the translation of the financial statements of foreign operations
and exchange differences on foreign currency borrowings and derivative instruments that provide a hedge against net investments in
foreign operations. On adoption of IFRS, cumulative exchange differences were deemed to be zero as permitted by IFRS 1.
During the year ended 31 December 2006, the impact of hedging net investments in foreign operations was to reduce the amount recorded
in the currency translation reserve by £32m (2005 £9m). The fair value of derivative instruments designated as hedges of net investments
in foreign operations outstanding at 31 December 2006 was a £3m asset (2005 £5m net liability).
IHG Notes to the Group financial statements 81
Notes to the Group financial statements