【文章內(nèi)容簡(jiǎn)介】 r any questions raised. Following receipt of clarification from the originator, the Controller will decide on approval/nonapproval.Notification of changesOnce approved the Controller Group will issue formal notification to the Executive Committee, if appropriate, Business Unit Finance Heads and the BSC Global Process Owners, who will then distribute as appropriateAll changes will be included in the next update version of the relevant accounting manual.  Basis of accountingA. DefinitionThe basis of accounting is the convention under which the Groups financial statements are expressed. The Group financial statements are prepared on a historic cost basis, except for certain items of property plant and equipment which are held at revalued amounts under the transitional rules of IFRS 1, and derivative financial instruments and availableforsale financial assets that are measured at fair value. The consolidated financial statements are presented in sterling and all values are rounded to the nearest thousand (163。000) except when otherwise indicated.B. Group policyThe Group’s consolidated accounts are prepared on the basis of applicable IFRS, including all International Accounting Standards (IAS), Standing Interpretations Committee (SIC) and International Financial Reporting Interpretations Committee (IFRIC) interpretations issued by the International Accounting Standards Board (IASB) as published.In 2005 IFRS 1, firsttime Adoption of International Financial Reporting Standards, was applied in preparing the financial statements. The Group adopted the following exemptions available under IFRS 1:a) Not to restate the parative information disclosed in the 2005 financial statements in accordance with IAS 32 ‘Financial Instruments: Disclosure and Presentation’ and IAS 39 ‘Financial Instruments: Recognition and Measurement’.b) Not to restate business binations before 1 January 2004.c) To recognise all actuarial gains and losses on pensions and other postretirement benefits directly in shareholders’ equity at 1 January 2004.d) To retain UK GAAP carrying values of property plant and equipment, including revaluations, as deemed cost at transition.e) Not to recognise separately cumulative foreign exchange movements up to the 1 January 2004.f) To apply IFRS 2 ’Sharebased Payments’ to grants of equity instruments after 7 November 2002 that had not vested at 1 January 2004.The Group is registered with the Securities and Exchange Commission in the United States and so is required to prepare and file certain financial information in pliance with US GAAP. ConsolidationA. DefinitionConsolidation is the process of adjusting and bining financial information from the individual accounts of a parent undertaking and its subsidiary undertakings to prepare financial statements that present financial information for the Group as a single economic entity. B. Group policyIHG PLC prepares consolidated accounts incorporating the balance sheet, cash flows and results of the pany and all of its subsidiary undertakings. The results of each subsidiary undertaking are incorporated between the dates of acquisition and disposal of that undertaking.All subsidiary undertakings ply with Group accounting policies in the preparation of their financial pro formas. The majority of subsidiary undertakings have a year end coterminous with or no more than three months before that of IHG PLC. Where a subsidiary has a different year end, financial pro forma information for the year to the Group39。s year end is produced.All interpany balances and transactions are eliminated. Subsidiary undertakings ()A. DefinitionA subsidiary of the Group is any undertaking (incorporated or unincorporated, partnership, joint venture, Trust or other vehicle) where the Group has control or the ability to control the entity, either directly or indirectly through one or more intermediaries. Control is the power to govern the financial and operating policies of the investee so as to obtain benefits from its activities. B. Group policyAny entity meeting the above definition is classified as a subsidiary and all its activities are consolidated within the group financial statements.Owing to the broad nature of the definition of a subsidiary, guidance must be sought from Group Finance where there is any doubt as to the relationship between undertakings. Minority interestA. Definition Minority interest is defined as the interest in a subsidiary undertaking included in the consolidation that is attributable to the interest held by or on behalf of persons other than the parent undertaking and its subsidiary undertakings. B. Group policy Partly owned subsidiary undertakings are fully consolidated by including their assets and liabilities at the latest balance sheet date. The percentage attributable to the minority is shown as minority interests and presented as an element of equity on the balance sheet. Loan capital issued by minority participants is treated within the Group accounts as other external borrowings. Minority interests are debited in full with their share of any loss unless this results in a debit balance. If the minority has a binding obligation to fund a loss then a debit balance can be recognised, otherwise, the losses are attributable to the parent’s interest. The results of a subsidiary undertaking down to and including profit after tax are fully consolidated. The results attributable to the minority are then shown on the face of the profit and loss account as an allocation of profit after tax for the period.The minority39。s interest in transactions between Group undertakings represents a realised profit or loss from the perspective of the Group. Such profits or losses are not material to the results of the Group and so are eliminated in full.In general, for the purposes of quarterly financial packs, minority interest figures are calculate