Holiday Inn 2013 Annual Report Download - page 159

Download and view the complete annual report

Please find page 159 of the 2013 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 192

  • 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
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192

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 28 of
the Group Financial Statements on pages 147 to 150.
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 135 and 137.
Capital risk management
The Group’s capital risk management policy is set out in note 21 of the Group Financial Statements on page 136.
Related party transactions
The Company takes advantage of the exemption under FRS 8 and does not disclose transactions with wholly owned subsidiaries.
Treasury shares
Own shares repurchased by the Company and not cancelled (treasury shares) are recognised at cost and deducted from retained
earnings. If reissued, any excess of consideration over carrying amount is recognised in the share premium reserve.
Notes to the Parent Company Financial Statements
Parent Company Financial Statements 157
OVERVIEW STRATEGIC REPORT GOVERNANCE
GROUP
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS ADDITIONAL INFORMATION