Holiday Inn 2008 Annual Report Download - page 99

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PARENT COMPANY
FINANCIAL STATEMENTS
Parent company financial statements and Notes to the parent company financial statements 97
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.
Change in accounting policy
The Company has adopted Urgent Issues Task Force 44 ‘FRS 20 – Group and Treasury Share Transactions’ (UITF 44) for the first time in
these financial statements. As a result, the Company has recorded an increase in its investments in subsidiaries (capital contribution)
equal to the share-based payment charges recognised by its subsidiaries in accordance with Financial Reporting Standard 20 ‘(IFRS 2)
Share-based payment’ (FRS 20), with a corresponding credit to equity (share-based payments reserve). Prior years have been restated,
resulting in an increase to investments and equity of £84m at 1 January 2008. The Company considers this treatment to be consistent
with the underlying principles of UITF 44.
Fixed asset investments
Fixed asset investments are stated at cost plus share-based payments capital contributions less any provision for impairment.
Financial risk management policies
Financial risk management policies are set out in note 21 of the Group financial statements on pages 79 and 80.
Capital risk management
The Group’s capital risk management policy is set out in note 21 of the Group financial statements on page 80.
2 Employees and Directors
2008 2007
Average number of employees (Non-Executive Directors) 77
2008 2007
£m £m
Staff costs 11
Detailed information on the emoluments, pensions, option holdings and shareholdings for each Director is shown in the Remuneration
Report on pages 40 to 48.
3 Investments
£m
At 1 January 2008 as previously reported 2,767
Impact of adopting UITF 44 (note 1) 84
At 1 January 2008 as restated 2,851
Share-based payments capital contribution 27
At 31 December 2008 2,878
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 34 of the Group financial statements.
4 Debtors
2008 2007
£m £m
Amounts due from subsidiary undertakings 148 166
Corporate taxation 841
156 207
Notes to the parent company financial statements