- excluding the effect of special items and any relevant tax.
- Assets held for sale
- IFRS classification used for assets when their carrying amount will be recovered primarily through a sale transaction rather than continuing use, and management considers a sale is highly probable.
- Basic earnings per share
- earnings available for ordinary shareholders divided by the weighted average number of ordinary shares in issue during the year.
- a long-dated note, being an obligation to repay.
- Commercial Paper
- a negotiable short-term unsecured promissory note, issued by a corporate or other borrower normally for a maximum of one year.
- Contingent Liability
- a liability that is contingent upon the occurrence of one or more uncertain future events.
- Continuing Operations
- operations not classified as discontinued and including acquisitions made during the year.
- Currency Swap
- an exchange of a deposit and a borrowing, each denominated in a different currency, for an agreed period of time.
- a long-term loan, usually secured by property.
- Discontinued Operations
- IFRS classification used to show the results of operations arising from assets classified as held for sale when the results relate to a separate line of business, or geographical area of operations, or where there is a coordinated plan to dispose of a separate line of business or geographic area of operation.
- earnings before interest, taxation, depreciation and amortisation and exceptional items.
- Exceptional Items
- material items deriving from ordinary activities but which are disclosed separately because of their size or incidence. (UK GAAP terminology.)
- Forward Rate Agreement
- a contract to receive or pay the difference between an agreed interest rate and the actual rate at an agreed future date, on a specified notional principal.
- net debt expressed as a percentage of shareholders' funds.
- the difference between the consideration given for a business and the total of the values of the separable assets and liabilities comprising that business.
- Gross Operating Margin
- operating profit before fixed costs and overheads, expressed as a percentage of turnover.
- the reduction of risk, normally in relation to foreign currency or interest rate movements, by making offsetting commitments.
- International Accounting Standards. See also IFRS.
- International Financial Reporting Standards. IHG adopted IFRS from 1 January 2004 in accordance with European Union law. The standards are published by the International Accounting Standards Board (www.iasb.org). Can also be referred to as IAS.
- Income-Generating Unit
- a portfolio of similar assets that are subject to the same economic and commercial influences.
- Interest Rate Swap
- an agreement to exchange fixed for floating interest rate streams (or vice versa) on a notional principal.
- Market Capitalisation
- the value attributed to a listed company by multiplying its share price by the number of shares in issue.
- Net Capital Expenditure
- cash expended on fixed assets, less cash received from selling fixed assets, excluding major acquisitions and disposals.
- Net Cash Flow
- cash flow from all operations, including major and one-off payments and receipts.
- Net Debt
- borrowings less current asset investments and cash at bank and in hand.
- Net Operating Assets
- total assets less liabilities, excluding all assets and liabilities of a financing nature.
- Normal Cash Flow
- cash flow from all operations before major and one-off payments and receipts.
- Operating Cash Flow
- cash flow from operations but before payments for tax and to providers of finance (through interest and dividends), and before major and one-off payments and receipts.
- Operating Margin
- operating profit expressed as a percentage of turnover.
- Special Items
- material items deriving from ordinary activities but which are disclosed separately because of their size or incidence.
- Subsidiary Undertaking
- a company in which the Group holds a stake and over which it exercises dominant influence.
- adjusted to remove items that distort comparability between both years.
- UK GAAP
- accounting principles generally accepted in the United Kingdom.
- US GAAP
- accounting principles generally accepted in the United States.
- Weighted Average Exchange Rate
- the average of the monthly exchange rates, weighted by reference to monthly operating profit.
- Working Capital
- the sum of stocks, debtors, creditors and accruals of a trading nature, excluding financing items such as corporate taxation and proposed dividends.
Last updated 12 December 2011