Holiday Inn 2004 Annual Report Download - page 58

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Goodwill
18 INTANGIBLE FIXED ASSETS £m
Cost:
At 31 December 2003 192
Exchange and other adjustments (8)
At 31 December 2004 184
Amortisation:
At 31 December 2003 34
Provided 10
Exchange adjustments (2)
At 31 December 2004 42
Net book value:
At 31 December 2004 142
At 31 December 2003 158
Soft Total
Hotels Drinks Group
19 TANGIBLE FIXED ASSETS £m £m £m
Cost or valuation:
At 31 December 2003 4,375 451 4,826
Exchange and other adjustments (95) – (95)
Additions 177 72 249
Disposals (142) (40) (182)
Impairment (20) – (20)
At 31 December 2004 4,295 483 4,778
Depreciation:
At 31 December 2003 660 215 875
Exchange and other adjustments (16) – (16)
Provided 144 44 188
On disposals (35) (38) (73)
Impairment 28 – 28
At 31 December 2004 781 221 1,002
Net book value:
At 31 December 2004 3,514 262 3,776
At 31 December 2003 3,715 236 3,951
Tangible fixed assets have been written down in total by £48m following an impairment review of the hotel estate. The impairment has
been measured by reference to the value of income-generating units, using either the higher of value in use or estimated recoverable
amount. The discount rates used for value in use calculations ranged from 8.0% to 10.5%.
Properties
Properties, comprising land, buildings and certain fixtures, fittings and equipment, are included above at cost or valuation, less
depreciation as required. The transitional rules of FRS 15 have been followed, permitting the carrying values of properties as at
1 October 1999 to be retained.
The most recent valuation of properties was undertaken in 1999 and covered all properties then owned by the Group other than hotels
acquired or constructed in that year and leasehold properties having an unexpired term of 50 years or less. This valuation was
undertaken by external Chartered Surveyors and internationally recognised valuers (Jones Lang LaSalle Hotels) in accordance with the
Appraisal and Valuation Manual of the Royal Institution of Chartered Surveyors. The basis of valuation was predominantly existing use
value and had regard to trading potential.
Notes to the financial statements
56 InterContinental Hotels Group 2004