Holiday Inn 2009 Annual Report Download - page 83

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GROUP FINANCIAL
STATEMENTS
Notes to the Group financial statements 81
10 Property, plant and equipment
Land and Fixtures, fittings
buildings and equipment Total
Note $m $m $m
Cost
At 1 January 2008 1,606 955 2,561
Additions 68591
Net transfers to non-current assets classified as held for sale (119) (60) (179)
Disposals (15) (24) (39)
Exchange and other adjustments (112) (56) (168)
At 31 December 2008 1,366 900 2,266
Additions 22 35 57
Net transfers from non-current assets classified as held for sale 176 104 280
Reclassification 14 (14) –
Disposals – (3) (3)
Exchange and other adjustments 44 24 68
At 31 December 2009 1,622 1,046 2,668
Depreciation and impairment
At 1 January 2008 (129) (498) (627)
Provided (11) (61) (72)
Net transfers to non-current assets classified as held for sale 37 37 74
Impairment charge a(12) – (12)
On disposals 15 25 40
Exchange and other adjustments – 15 15
At 31 December 2008 (100) (482) (582)
Provided (11) (60) (71)
Net transfers from non-current assets classified as held for sale (44) (45) (89)
Impairment charge b(28) – (28)
Valuation adjustments arising on reclassification from held for sale (note 11) (28) (17) (45)
On disposals –22
Exchange and other adjustments (1) (18) (19)
At 31 December 2009 (212) (620) (832)
Net book value
At 31 December 2009 1,410 426 1,836
At 31 December 2008 1,266 418 1,684
At 1 January 2008 1,477 457 1,934
The impairment charges have arisen as a result of the current economic downturn and a re-assessment of the recoverable amount
of certain properties, based on value in use, as follows:
a Recognised at 31 December 2008 in respect of a North American hotel. Estimated future cash flows were discounted
at a pre-tax rate of 13.5%.
b Recognised at 30 June 2009, comprising $20m in respect of a North American hotel and $8m relating to a European hotel.
Estimated future cash flows were discounted at pre-tax rates of 14.0% and 12.5% respectively.
These charges are included within impairment on the face of the Group income statement.
The carrying value of land and buildings held under finance leases at 31 December 2009 was $187m (2008 $192m).
The carrying value of assets in the course of construction was $nil (2008 $41m).
No borrowing costs were capitalised during the year (2008 $nil).