Holiday Inn 2014 Annual Report Download - page 159

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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 26 of the Group Financial Statements on pages 146 to 148.
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 20 of the Group Financial Statements on pages 135 and 136.
Capital risk management
The Group’s capital risk management policy is set out in note 20 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.
2. Directors
2014 2013
Number of Directors 13 13
2014
£m
2013
£m
Directors’ emoluments¹
Base salaries, fees, performance payments and benefits 5.5 5.5
Pension benefits under defined contribution plan 0.1 0.2
¹ Excludes ICETUS cash-out payment of £9.4m (see Directors’ Remuneration Report, page 85).
Detailed information on the emoluments, pensions, option holdings and shareholdings for each Director is shown in the Directors’
Remuneration Report on pages 76 to 91.
3. Investments
£m
At 1 January 2014 2,968
Share-based payments capital contribution 17
At 31 December 2014 2,985
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.
Notes to the Parent Company Financial Statements
157
STRATEGIC REPORT GOVERNANCE
GROUP
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
ADDITIONAL
INFORMATION