Holiday Inn 2007 Annual Report Download - page 88

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86 IHG Annual Report and Financial Statements 2007
Notes to the Group financial statements continued
28 IHG SHAREHOLDERS’ EQUITY
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
£m £m £m £m £m £m £m £m
At 1 January 2006 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 shares 20––––––20
Repurchase of shares (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
Total recognised income and expense
for the year ––––(8)9239240
Issue of ordinary shares 16––––––16
Repurchase of shares (1)–––––(80) (81)
Transfer to capital redemption reserve –1––––(1)–
Purchase of own shares by employee
share trusts – – (69) ––––(69)
Release of own shares by employee
share trusts ––45–––(40) 5
Equity-settled share-based cost ––––––3030
Equity dividends paid ––––––(773) (773)
At 31 December 2007 81 5 (41) (1,528) 19 6 1,504 46
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 13 29⁄47p shares.
Shares held by employee share trusts
Comprises £41.1m (2006 £16.8m) in respect of 3.4m (2006 1.7m) InterContinental Hotels Group PLC ordinary shares held by employee
share trusts, with a market value at 31 December 2007 of £30m (2006 £21m).
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 2007 was a £2m liability (2006 £1m asset).
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 £nil as permitted by IFRS 1.
During the year ended 31 December 2007, the impact of hedging net investments in foreign operations was to reduce the amount
recorded in the currency translation reserve by £7m (2006 £32m). The fair value of derivative instruments designated as hedges
of net investments in foreign operations outstanding at 31 December 2007 was £nil (2006 £3m net asset).