Holiday Inn 2006 Annual Report Download - page 91

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Notes to the parent company financial statements
1 Accounting policies
Basis of accounting
The financial statements are prepared under the historical cost convention. They have been drawn up to comply with applicable accounting
standards in the United Kingdom (UK GAAP). These accounts are for the Company and are not consolidated financial statements.
Fixed asset investments
Fixed asset investments are stated at cost less any provision for impairment.
Bank and other borrowings
Bank and other borrowings are initially recognised at the fair value of the consideration received less directly attributable transaction costs.
Finance costs are charged to the profit and loss account using the effective interest rate method.
Borrowings are classified as due after more than one year when the repayment date is more than 12 months from the balance sheet date
or where they are drawn on a facility with more than 12 months to expiry.
2 Employees and Directors 2006 2005
Average number of employees (Non-Executive Directors) 88
2006 2005
£m £m
Staff costs 1–
Detailed information on the emoluments, pensions, option holdings and shareholdings for each Director is shown in the Remuneration
Report on pages 31 to 39.
3 Investments £m
At 1 January 2006 and 31 December 2006 2,767
The Company is the beneficial owner of all of the equity share capital of InterContinental Hotels Limited. The principal operating subsidiary
undertakings of that company are listed in note 35 of the Group financial statements.
2006 2005
4 Debtors £m £m
Amounts due from subsidiary undertakings 8131
Corporate taxation 21 6
29 137
2006 2005
5 Creditors: amounts falling due within one year £m £m
Amounts due to subsidiary undertakings 1,624 1,086
2006 2005
6 Creditors: amounts falling due after more than one year £m £m
Unsecured bank loan 102 –
The unsecured bank borrowings are under a 2009 £1.1bn Syndicated Facility. Covenants exist on this facility and as at the balance sheet
date the Group and the Company were not in breach of these covenants.
IHG Notes to the parent company financial statements 89
Parent company financial statements and Notes to the parent company financial statements