Holiday Inn 2015 Annual Report Download - page 120

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Notes to the Group Financial Statements continued
14. Investment in associates and joint ventures continued
Other associates and joint ventures
The summarised aggregated financial information for individually immaterial associates and joint ventures is set out below. These are mainly
investments in entities that own hotels which the Group manages.
Associates Joint ventures Total
2015
$m
2014
$m
2013
$m
2015
$m
2014
$m
2013
$m
2015
$m
2014
$m
2013
$m
Share of profits/(losses)
Operating profits/(losses) before
exceptional items 312 (1) –– 212
Exceptional items ––6 ––– ––6
318 (1) –– 218
The exceptional profit in 2013 arose on the sale of a hotel owned by an associate investment that was classified as held for sale at 31December
2012. Followingcompletion of the sale, the Group received a $17m cash distribution from the associate, being the Group’s share of the net
disposal proceeds.
15. Other financial assets
2015
$m
2014
$m
Equity securities available-for-sale:
Quoted equity shares 14 16
Unquoted equity shares 136 128
150 144
Loans and receivables:
Trade deposits and loans 54 43
Restricted funds 34 21
Bank accounts pledged as security 46 49
134 113
Total other financial assets 284 257
Analysed as:
Current –5
Non-current 284 252
284 257
Equity securities available-for-sale are measured at fair value (see note 23) and loans and receivables are held at amortised cost.
Equity securities available-for-sale were denominated in the following currencies: US dollars $102m (2014: $94m), Hong Kong dollars $28m
(2014: $34m) and other currencies $20m (2014: $16m). Unlisted equity shares are mainly investments in entities that own hotels which the Group
manages. Dividendincome from available-for-sale equity securities of $9m (2014: $10m) is reported as ‘other operating income and expenses’ in
the Group income statement.
Trade deposits and loans include a deposit of $37m made in 2011 to a hotel owner in connection with the renegotiation of a management contract.
The deposit is non-interest-bearing and repayable at the end of the management contract, and is therefore held at its discounted value of $14m
(2014: $13m); the discount unwinds to the income statement within ‘financial income’ over the period to repayment.
Restricted funds comprise cash held in bank accounts which is pledged as collateral to insurance companies for risks retained by the Group and
other amounts held in escrow.
The bank accounts pledged as security (£31m) are subject to a charge in favour of the members of the UK unfunded pension arrangement
(see note 25).
The movement in the provision for impairment of other financial assets during the year is as follows:
2015
$m
2014
$m
At 1 January (28) (25)
Exchange and other adjustments –(3)
At 31 December (28) (28)
The provision is used to record impairment losses unless the Group is satisfied that no recovery of the amount is possible; at that point the
amount considered irrecoverable is either written off directly to the income statement or, if previously provided, against the financial asset
with no impact on the income statement.
118 IHG Annual Report and Form 20-F 2015