Intercontinental Hotels

Alternative Performance Measures (APMs)

In this Common Practices report we look at what APMs are; how companies are using them; and what they mean for the users of accounts when comparing them to others. This report examines the APMs that are stated within recent company and group accounts for a sample of 20 companies. Our selected sample covers year ends from 30 June 2017 to 31 March 2018. All companies report under International Financial Reporting Standards (IFRS) as adopted in the EU. Throughout this report, we look at some of the recommendations put forward by the European Securities and Markets Agency (ESMA) in their guidelines setting out best practice on APMs in 2015, which became effective from 3 July 2016, as well as the observations made by the FRC, assessing whether and how companies have implemented them. 

InterContinental Hotels Group plc Monitor

InterContinental Hotels Group plc Annual Report 2018
CR Monitor Issue: 
2018/0619
Company covered: 
InterContinental Hotels Group plc
Period End: 
31 December, 2017
Report issued on 20 June 2018 covered the following practice issues:
Pronouncements
Presentation of a reconciliation of movements in liabilities arising from financing activities on adoption of amendment to IAS 7 "Statement of cash flows".
Change
Extended disclosure of key audit matters in the auditors' report.
Pronouncements
Extended disclosure in respect of the future impacts of IFRS 9 "Financial instruments", IFRS 15 "Revenues from contracts with customers" and IFRS 16 "Leases".
Change
Introduction of reconciliations showing the calculation of non-IFRS performance measures.

Fair value measurement information under IFRS

IFRS 13 “Fair value measurement” sets out a single consistent framework for measuring fair value within IFRS financial statements and outlines a standardised set of disclosures in respect of fair value measurements. IFRS 13 has been mandatory now for some years, with application being required for annual reporting periods beginning on or after 1 January 2013. This report sets out the results of how requirements of the standard have been put into practice, both in terms of measurement and disclosure, in the consolidated financial statements of 139 large public limited companies with year ends between 31 March 2016 and 1 April 2017. It is not an exhaustive study of all aspects of IFRS 13 application and its conclusions are limited to our findings in respect of the areas analysed within the financial statements reviewed.

Disclosure of the impacts of IFRS 16 "Leases"

IFRS 16 “Leases” will fundamentally change accounting by lessees as it requires assets previously off balance sheet under operating lease arrangements to be brought on balance sheet as is currently the case for finance leased assets. As a result on application companies will recognise both additional assets and additional liabilities. Consequently there will also be knock on effects in the income statement as operating lease charges are replaced by a depreciation charge and a finance expense. This report analyses the financial statements of a range of companies to firstly establish whether there has been any early adoption and secondly to establish what companies are disclosing in respect of IFRS 16 and its future impacts.

FRS 101 "Reduced disclosure framework"- A review of application in parent company accounts of IFRS groups

The preparation of parent company financial statements is something that all consolidated IFRS groups have to consider. In light of the great level of recent change in this area in the UK this represents a one-off report giving guidance on the preparation of parent company financial statements under FRS 101 "Reduced Disclosure Framework". It focuses on UK groups that prepare IFRS consolidated accounts.

The report sets out the key findings from our review of the first-time application of FRS 101 “Reduced Disclosure Framework” by a group of 29 parent companies that prepare consolidated financial statements under IFRS.  We consider a number of points including: how companies informed shareholders of the intention to implement FRS 101; the format of the primary financial statements; disclosure of the list of exemptions taken; the concept of equivalent disclosure in the consolidated financial statements; the length of company financial statements under FRS 101; and changes in accounting policy on adoption. 

InterContinental Hotels Group plc Monitor

InterContinental Hotels Group plc Annual Report 2014
CR Monitor Issue: 
2015/0816
Company covered: 
InterContinental Hotels Group plc
Period End: 
31 December, 2014
Report issued on 31 August 2015 covered the following practice issues:
Pronouncements
Overdrafts disaggregated from cash and cash equivalents under new offsetting rules.
Change
Elements of audit risk assessment presented in tabular form by external auditor.

Presentation Of Comprehensive Income, an emerging issue under IFRS

This report examines the extent to which companies follow the current requirement under IFRS to present total comprehensive income in the statement of changes in equity.

Intercontinental Hotels Group plc Period End 31 December 2010

Intercontinental Hotels Group plc Annual Report 2010
CR Monitor Issue: 
2011/0913
Company covered: 
Intercontinental Hotels Group plc
Period End: 
31 December 2010
Report issued on 30 September 2011 did not identify any changes with significant impacts on the financial statements but covered the following practice issues:
Change
Total comprehensive income disaggregated in the statement of changes in equity.
Change
Derivatives presented separately along with a current to non-current reclassification.
Change
Net change in loyalty programme and system fund surplus disclosed separately in cash flow statement.
Change
Net debt redefined to include an element of the fair value of hedging derivatives.