Holiday Inn 2015 Annual Report Download - page 119

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14. Investment in associates and joint ventures
Associates
$m
Joint
ventures
$m
Total
$m
Cost
At 1 January 2014 61 27 88
Initial retained interest in Barclay associate (note 11) 22 – 22
Additions 15 – 15
Share of (losses)/profits (4) – (4)
Dividends (2) – (2)
At 31 December 2014 92 27 119
Additions 29 1 30
Share of (losses)/profits (2) (1) (3)
Capitalisation of a receivable 10 – 10
Dividends (5) – (5)
Exchange and other adjustments (3) – (3)
At 31 December 2015 121 27 148
Impairment
At 1 January 2013 and 31 December 2014 (3) – (3)
Charge for the year (9) – (9)
At 31 December 2015 (12) – (12)
Net book value
At 31 December 2015 109 27 136
At 31 December 2014 89 27 116
At 1 January 2014 58 27 85
All associates and joint ventures are accounted for using the equity method.
On 20 November 2015, the Group disposed of an associate investment in the AMEA region realising a gain on disposal of $9m. At the time
of disposal, the investment had a $nil net book value.
Due to localised adverse market conditions, an impairment charge of $9m has been recognised during the year relating to an associate
investment in the AMEA region following a re-assessment of its recoverable amount to $nil, based on value in use calculations. Estimated
future cash flows were discounted at a pre-tax rate of 13.2%.
Barclay associate
The Group held one material associate investment at 31 December 2015, a 19.9% interest in 111 East 48th Street Holdings, LLC (the Barclay
associate) which owns InterContinental New York Barclay, a hotel managed by the Group. The investment is classified as an associate
and equity accounted as the Group has the ability to exercise significant influence through its involvement in the redevelopment of the hotel
and certain decision rights.
Summarised financial information in respect of the Barclay associate is set out below:
31 December
2015
$m
31 December
2014
$m
Non-current assets 480 339
Net current (liabilities)/assets (7) 2
Non-current liabilities (226) (182)
Net assets 247 159
Group share of reported net assets at 19.9% 49 32
Adjustments to reflect additional rights and obligations under the shareholder agreement 10 –
Carrying amount 59 32
12 months to
31 December
2015
$m
9 months to
31 December
2014
$m
Revenue –24
Loss for the period (21) (26)
Group’s share of loss for the period (4) (5)
STRATEGIC REPORT GOVERNANCE GROUP FINANCIAL STATEMENTS ADDITIONAL INFORMATIONPARENT COMPANY FINANCIAL STATEMENTS
117IHG Annual Report and Form 20-F 2015