Holiday Inn 2012 Annual Report Download - page 133

Download and view the complete annual report

Please find page 133 of the 2012 Holiday Inn annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 144

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144

OVERVIEW BUSINESS REVIEW GOVERNANCE
PARENT COMPANY
FINANCIAL STATEMENTS OTHER INFORMATION
GROUP FINANCIAL
STATEMENTS
Parent Company Financial Statements and Notes to the Parent Company Financial Statements 131
1. Accounting policies
Basis of accounting
The Financial Statements are prepared under the historical cost convention and on a going concern basis. 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 plus deemed capital contributions arising from share-based payment transactions less any
provision for impairment. The Company records an increase in its investments in subsidiaries equal to the share-based payments charge
recognised by its subsidiaries with a corresponding credit to equity. Details of the Group’s share-based payments are set out in note 27
of the Group Financial Statements on pages 123 to 125.
Borrowings
Borrowings are initially recognised at the fair value of the consideration received less directly attributable transaction costs. They are
subsequently measured at amortised cost. Finance charges, including the transaction costs and any discount or premium on issue, 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.
Financial risk management policies
Financial risk management policies are set out in note 21 of the Group Financial Statements on pages 111 and 112.
Capital risk management
The Group’s capital risk management policy is set out in note 21 of the Group Financial Statements on page 112.
Related party transactions
The Company takes advantage of the exemption under FRS 8 and does not disclose transactions with wholly owned subsidiaries.
2. Directors
2012 2011
Average number of Non-Executive Directors 7 8
2012 2011
£m £m
Remuneration costs 1 1
Detailed information on the emoluments, pensions, option holdings and shareholdings for each Non-Executive Director is shown in the
Directors’ Remuneration Report on pages 59 to 78.
3. Investments
£m
At 1 January 2012 2,934
Share-based payments capital contribution 17
At 31 December 2012 2,951
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.
4. Debtors
2012 2011
£m £m
Amounts due from subsidiary undertakings 5 5
Corporate taxation 11 13
16 18
5. Creditors
2012 2011
£m £m
Amounts falling due within one year
Amounts due to subsidiary undertakings 1,440 1,960
Amounts falling due after more than one year
£250m 6% bonds 2016 249 249
£400m 3.875% bonds 2022 395 –
644 249
Notes to the Parent Company Financial Statements