【正文】 s accounts, against the net assets at the date of acquisition of the subsidiary undertaking. (iii) Processing bank setoff adjustments (eliminating cash balances against overdrafts with the same bank where the Group has a setoff arrangement). (iv) Processing centrally required adjustments which cannot be allocated to a specific entity.B. Group policy Adjustments in respect of specific entities are pushed down and reflected in the individual entity accounts and not held as central consolidation adjustments. Only those adjustments defined above are made in the preparation of consolidated Group accounts and held outside the scope of an individual entity39。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。 potential impact on other policies (nonaccounting policies) reason for changes financial statements unless to do so would contravene local legislation or standards. The preparation of accounting information for release into the public domain is ultimately the responsibility of the IHG PLC directors. It is their responsibility to review this information and to ensure that the financial statements give a true and fair view of the pany and ply with appropriate legislation. Quality control for accounting information is effectively achieved by the main board delegating the responsibility for preparing the underlying financial statements to the Finance Director. Ultimately it is the Board which must ensure that appropriate control procedures are adopted in order to achieve the group objectives. Information contained in this Manual is strictly confidential and for use only by IHG Group personnel and the Group39。s professional advisers. It is not to be distributed or otherwise published outside the Group. Any external advisers using the manual are not permitted to copy any material or to remove the Manual from the premises.B. ControlControl is exercised at three levels, namely:1. Controllers Group (Global)2. Regional and Functional Finance Director (divisional level)3. Business Service Centres (global and divisional)4. Project managementAt the corporate level, information supplied by divisions is consolidated into a Group total and reviewed for pliance against published reporting standards. At the divisional level control is exercised by monitoring performance against specific operating targets. The BSCs are responsible for transaction processing.C. StructureFinancial control and reporting recognises two related structures within the Group the management structure and the legal structure. The management structure is based on the Group39。 financial impact of change requesting Business Unit/BSC sign off 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 calculated and reported by the partly owned subsidiary undertakings themselves from the perspective of IHG PLC39。s accounts. Such adjustments can only be made by Group Finance following the governance procedures adopted by that Group. Foreign currencies ()A. DefinitionsA foreign currency transaction is a transaction that is denominated or requires settlement in a foreign currency, including transactions arising when an entity buys or sells goods or services whose price is denominated in a foreign currency. Presentation currencyThe currency in which the financial statements are presentedFunctional currencyThe currency of the primary economic environment in which the entity operates.Foreign currencyA currency other than the functional currency of the entity.Monetary itemsCurrency and assets and liabilities that will be received or paid in a fixed amount of currency (balances to be se