Holiday Inn 2008 Annual Report Download - page 78

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76 IHG Annual Report and Financial Statements 2008
15 Other financial assets
2008 2007
$m $m
Non-current
Equity securities available-for-sale 64 93
Other 88 95
152 188
Current
Equity securities available-for-sale 6–
Other 418
10 18
Available-for-sale financial assets, which are held on the balance sheet at fair value, consist of equity investments in listed and unlisted
shares. Of the total amount of equity investments at 31 December 2008, $2m (2007 $3m) were listed securities and $68m (2007 $90m)
unlisted; $44m (2007 $56m) were denominated in US dollars, $13m (2007 $16m) in Hong Kong dollars and $13m (2007 $21m) in other
currencies. Unlisted equity shares are mainly investments in entities that own hotels which the Group manages. 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. Dividend income from available-
for-sale equity securities of $11m (2007 $16m) is reported as other operating income and expenses in the Group income statement.
Other financial assets consist of trade deposits, restricted cash and deferred consideration on asset disposals. These amounts have been
designated as ‘loans and receivables’ and are held at amortised cost. Restricted cash of $55m (2007 $54m) relates to cash held in bank
accounts which is pledged as collateral to insurance companies for risks retained by the Group.
The movement in the provision for impairment of other financial assets during the year is as follows:
2008 2007
$m $m
At 1 January (9) (41)
Provided (2) –
Recoveries –3
Disposals –5
Amounts written off against the financial asset –24
At 31 December (11) (9)
The provision is used to record impairment losses unless the Group is satisfied that no recovery of the amount is possible; at that point
the amount considered irrecoverable is written off against the financial asset directly with no impact on the income statement.
16 Inventories
2008 2007
$m $m
Finished goods 23
Consumable stores 23
46
Notes to the Group financial statements continued