Holiday Inn 2010 Annual Report Download - page 113

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OVERVIEW BUSINESS REVIEW
THE BOARD,
SENIOR MANAGEMENT AND
THEIR RESPONSIBILITIES USEFUL INFORMATION
Parent company financial statements and Notes to the parent company financial statements 111
GROUP FINANCIAL
STATEMENTS
1. Accounting policies
Basis of accounting
The financial statements are prepared under the historical cost convention and on a going concern basis. They have been drawn up
to comply with applicable accounting standards in the United Kingdom (UK GAAP). These accounts are for the Company and are not
consolidated financial statements.
Fixed asset investments
Fixed asset investments are stated at cost plus share-based payments capital contributions less any provision for impairment.
The Company records an increase in its investments in subsidiaries equal to the share-based payments charge recognised by its
subsidiaries with a corresponding credit to equity.
Borrowings
Borrowings are initially recognised at the fair value of the consideration received less directly attributable transaction costs. They are
subsequently measured at amortised cost. Finance charges, including the transaction costs and any discount or premium on issue, are
charged to the profit and loss account using the effective interest rate method.
Borrowings are classified as due after more than one year when the repayment date is more than 12 months from the balance sheet date.
Financial risk management policies
Financial risk management policies are set out in note 21 of the Group financial statements on pages 91 and 92.
Capital risk management
The Group’s capital risk management policy is set out in note 21 of the Group financial statements on page 92.
Related party transactions
The Company takes advantage of the exemption under FRS 8 and does not disclose transactions with wholly owned subsidiaries.
2. Directors
2010 2009
Average number of Non-Executive Directors 7 6
2010 2009
£m £m
Remuneration costs 1 1
Detailed information on the emoluments, pensions, option holdings and shareholdings for each Non-Executive Director is shown in the
Remuneration Report on pages 48 to 60.
3. Investments
£m
At 1 January 2010 2,894
Share-based payments capital contribution 21
At 31 December 2010 2,915
The Company is the beneficial owner of all of the equity share capital of InterContinental Hotels Limited. The principal operating subsidiary
undertakings of that company are listed in note 34 of the Group financial statements.
4. Debtors
2010 2009
£m £m
Amounts due from subsidiary undertakings 14 5
Corporate taxation 13 17
27 22
Notes to the parent company financial statements
PARENT COMPANY
FINANCIAL STATEMENTS