Holiday Inn 2015 Annual Report Download - page 147

1. Accounting policies
Authorisation of Financial Statements and statement of compliance with FRS 101
The Parent Company Financial Statements of InterContinental Hotels Group PLC (the Company) for the year ended 31 December 2015 were
authorised for issue by the Board of Directors on 22 February 2016 and the statement of financial position was signed on the Board’s behalf
by Paul Edgecliffe-Johnson. The Company is a public limited company incorporated and domiciled in the UK. The Company’s ordinary shares
are publicly traded on the London Stock Exchange and it is not under the control of any single shareholder.
The Directors have assessed, in the light of current and anticipated economic conditions, the Company’s ability to continue as a going concern.
The Directors confirm they have a reasonable expectation that the Company has adequate resources to continue in operational existence for
the foreseeable future, and accordingly, they continue to adopt the going concern basis in preparing the Parent Company Financial Statements.
For further consideration of the going concern position of the Group see page 155 of the Directors’ Report.
The Parent Company Financial Statements are presented in sterling and all values are rounded to the nearest million pound (£m) except when
otherwise indicated.
These Financial Statements have been prepared in accordance with Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ (FRS 101).
No income statement is presented for the Company as permitted by Section 408 of the Companies Act 2006. There were no gains or losses either
in the current or preceding years recognised in other comprehensive income. The profit on ordinary activities after taxation amounts to £659m
(2014: loss of £34m).
The audit fee of £0.02m (2014: £0.02m) was borne by a subsidiary undertaking in both years.
Basis of preparation
In the transition to FRS 101 from extant UK GAAP, the Company has applied IFRS 1 ‘First-time Adoption of International Financial Reporting
Standards’ whilst ensuring that its assets and liabilities are measured in compliance with FRS 101. The transition to FRS 101 from extant
UK GAAP has not required any measurement and recognition adjustments to previously reported equity, net assets or loss after taxation.
In the transition to FRS 101, the following transition exemptions within IFRS 1 ‘First-time Adoption of International Financial Reporting Standards’
have been applied:
• the exemption from IAS 27 ‘Separate Financial Statements’ such that the opening cost of investments in subsidiary undertakings has been
taken as deemed cost being the extant UK GAAP carrying amount at the transition date.
The following disclosures have not been provided as permitted by FRS 101:
• a Cash Flow Statement and related notes as required by IAS 7 ‘Statement of Cash Flows’;
• a comparative period reconciliation for share capital as required by IAS 1 ‘Presentation of Financial Statements’;
• disclosures in respect of transactions with wholly owned subsidiaries as required by IAS 24 ‘Related Party Disclosures’;
• disclosures in respect of capital management as required by paragraphs 134 to 136 of IAS 1 ‘Presentation of Financial Statements’;
• the effects of new but not yet effective IFRSs as required by paragraphs 30 and 31 of IAS 8 ‘Accounting Policies, Changes in Accounting
Estimates and Errors’;
• an additional statement of financial position for the beginning of the earliest comparative period as required by paragraphs 6 and 21
of IFRS 1 ‘First-time Adoption of International Financial Reporting Standards’; and
• disclosures in respect of the compensation of Key Management Personnel as required by paragraph 17 of IAS 24 ‘Related Party Disclosures’.
As the Consolidated Financial Statements of the Company include the equivalent disclosures, the Company has also taken the exemptions under
FRS 101 available in respect of the following disclosures:
• the requirements of paragraphs 45(b) and 46 to 52 of IFRS 2 ‘Share-based Payment’ in respect of group settled share based payments; and
• the requirements of paragraphs 91 to 99 of IFRS 13 ‘Fair Value Measurement’ and the disclosures required by IFRS 7 ‘Financial Instruments:
Disclosures’.
The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these
Financial Statements.
Notes to the Parent Company
Financial Statements
STRATEGIC REPORT GOVERNANCE GROUP FINANCIAL STATEMENTS ADDITIONAL INFORMATIONPARENT COMPANY FINANCIAL STATEMENTS
145IHG Annual Report and Form 20-F 2015