Holiday Inn 2013 Annual Report Download - page 102

Financial Statements and accounting records
The laws of England and Wales require the Directors to prepare
financial statements which give a true and fair view of the assets,
liabilities and financial position of the Company and of the Group at
the end of the financial year together with the profit or loss of the
Group for that period. In preparing these Financial Statements,
theDirectors are required to:
• select suitable accounting policies and apply them consistently;
• make judgements and accounting estimates that are reasonable;
• state whether the Consolidated Financial Statements have been
prepared in accordance with International Financial Reporting
Standards (IFRS) as issued by the International Accounting
Standards Board (IASB), for use in the EU and Article 4 of the
EU IAS Regulation;
• state for the Company Financial Statements whether applicable
UK accounting standards have been followed; and
• prepare the Financial Statements on the going concern basis
unless it is inappropriate to presume that the Company and the
Group will continue in business.
The Directors have responsibility for ensuring that the Group
keeps proper accounting records which disclose with reasonable
accuracy the financial position of the Group and the Company to
enable them to ensure that the Financial Statements comply with
the Companies Act 2006 and, as regards the Consolidated Financial
Statements, Article 4 of the EU IAS Regulation. The Directors are
also responsible for the system of internal control, for safeguarding
the assets of the Company and the Group, and taking reasonable
steps toprevent and detect fraud and other irregularities.
Disclosure and Transparency Rules
The Board confirms that to the best of its knowledge:
• the Financial Statements have been prepared in accordance with
IFRS as issued by the IASB and IFRS as adopted by the EU, give a
true and fair view of the assets, liabilities, financial position and
profit and loss of the Group; and
• the Annual Report, including the Strategic Report, includes a fair
review of the development and performance of the business and
the position of the Group together with a description of the
principal risks and uncertainties that it faces.
Directors’ statement under the UK Corporate
Governance Code
Having taken advice from the Audit Committee, the Board considers
that the Annual Report and Form 20-F, taken as a whole is fair,
balanced and understandable and that it provides the information
necessary for shareholders to assess the Company’s performance,
business model and strategy.
Disclosure of information to Auditor
The Directors who held office as at the date of approval of this
report confirm that they have taken steps to make themselves
aware of relevant audit information (as defined by section 418(3)
of the Companies Act 2006). None of the Directors are aware of
any relevant audit information which has not been disclosed to
the Company’s Auditor.
Management’s report on internal control over
financialreporting
Management is responsible for establishing and maintaining
adequate internal control over financial reporting for the Group,
asdefined in Rule 13a-15(f) and 15d-15(f) under the Securities
Exchange Act of 1934 as a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in
accordance with IFRS. The Group’s internal control over financial
reporting includes policies and procedures that:
• pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the Group’s transactions and
dispositions of assets;
• are designed to provide reasonable assurance that transactions
are recorded as necessary to permit the preparation of the
Financial Statements in accordance with IFRS as issued by the
IASB and the IFRS adopted by the EU, and that receipts and
expenditure are being made only in accordance with authorisation
of management and the Directors of the Company; and
• provide reasonable assurance regarding prevention or timely
detection of unauthorised acquisition, use or disposition of
the Group’s assets that could have a material effect on the
FinancialStatements.
Any internal control framework has inherent limitations and
internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness
tofuture periods are subject to the risk that controls may become
inadequate because of changes in conditions or the degree of
compliance with the policies or procedures may deteriorate.
Management has undertaken an assessment of the effectiveness
ofthe Group’s internal control over financial reporting at 31 December
2013 based on criteria established in the Internal Control-Integrated
Framework issued by the Committee of Sponsoring Organizations
of the Treadway Commission (1992 Framework) (the COSO criteria).
Based on this assessment, management has concluded that as at
31 December 2013 the Group’s internal control over financial reporting
was effective.
During the period covered by this document there were no changes
in the Group’s internal control over financial reporting that have
materially affected or are reasonably likely to materially affect
the effectiveness of the internal controls over financial reporting.
The Group’s internal financial control over financial reporting
at 31December 2013, together with the Group’s Consolidated
Financial Statements, were audited by Ernst & Young LLP, an
independent registered public accounting firm. Their report on
internal control overfinancial reporting can be found on page 103.
On behalf of the Board
Richard Solomons Paul Edgecliffe-Johnson
Chief Executive Officer Chief Financial Officer
17 February 2014 17 February 2014
100 IHG Annual Report and Form 20-F 2013
Statement of Directors’ Responsibilities