Significant accounting policies (Tables)

12 Months Ended

Dec. 31, 2018

Other changes [member]

Statement [LineItems]

Adoption of new accounting standards and other presentational changes

Prior year comparatives have been restated to reflect these presentational changes and the impact on the Group income statement for the years ended 31 December 2017 and 31 December 2016 is as follows:

	Year ended 31 December 2017									Year ended 31 December 2016
	Managed leases $m			InterContinental reservations $m			Total $m			Managed leases $m			InterContinental reservations $m			Total $m
Revenue from fee business		(163	)		(25	)		(188	)		(162	)		(23	)		(185	)
Revenue from owned, leased and managed lease hotels		163			—			163			162			—			162
System Fund revenues		—			25			25			—			23			23
Total revenue		—			—			—			—			—			—
Cost of sales		—			25			25			—			23			23
System Fund expenses		—			(25	)		(25	)		—			(23	)		(23	)
Operating profit		—			—			—			—			—			—

New standards issued but not yet effective

IFRS 16 [member]

Statement [LineItems]

Adoption of new accounting standards and other presentational changes

If the results for the year ended 31 December 2018 had been reported under IFRS 16, the estimated impacts would have been as follows:

	$m
Cost of sales		18
Administrative expenses		33
Depreciation and amortisation		(34	)
Interest expense		(19	)
Tax		1
Total profit impact		(1)
Leased assets		323
Deferred tax assets		3
Other assets		(2	)
Lease liabilities		(431	)
Deferred tax liabilities		7
Other liabilities		31
Net assets impact		(69	)

IFRS 15 [member]

Statement [LineItems]

Impact of IFRS 15 on Financial Statements

Impact of IFRS 15 and other presentational changes on the Group income statement

	Year ended 31 December 2017
	As previously reported $m			IFRS 15 – Core IHG $m			IFRS 15 – System Fund $m			Other changes (page 114) $m			As restated $m
Revenue from fee business		1,600			(33	)		—			(188	)		1,379
Revenue from owned, leased and managed lease hotels		184			4			—			163			351
System Fund revenues		—			—			1,217			25			1,242
Reimbursement of costs		—			1,103			—			—			1,103
Total revenue		1,784			1,074			1,217			—			4,075
Cost of sales		(608	)		12			—			25			(571	)
System Fund expenses		—			—			(1,251	)		(25	)		(1,276	)
Reimbursed costs		—			(1,103	)		—			—			(1,103	)
Administrative expenses		(328	)		(9	)		—			—			(337	)
Share of gains/(losses) of associates and joint ventures		3			—			—			—			3
Other operating income		11			—			—			—			11
Depreciation and amortisation		(103	)		25			—			—			(78	)
Operating profit before exceptional items		759			(1	)		(34	)		—			724
Impairment charges		(18	)		—			—			—			(18	)
Other exceptional items		22			—			—			—			22
Operating profit		763			(1	)		(34	)		—			728
Financial income		4			—			—			—			4
Financial expenses		(89	)		—			13			—			(76	)
Tax		(85	)		(28	)		(2	)		—			(115	)
Profit after tax		593			(29	)		(23	)		—			541

Impact of IFRS 15 on the Group statement of comprehensive income

	Year ended 31 December 2017
	As previously reported $m			IFRS 15 adoption $m			As restated $m
Profit for the year		593			(52	)		541
Exchange losses on retranslation of foreign operations, net of related tax credit of $1m		(77	)		(11	)		(88	)
Other items		(47	)		—			(47	)
Total comprehensive income for the year		469			(63	)		406

Impact of IFRS 15 on the Group statement of financial position

	31 December 2017
	As previously reported $m			IFRS 15 adoption $m			As restated $m
Goodwill and other intangible assets		1,467			(500	)		967
Deferred tax assets		56			19			75
Contract costs		—			51			51
Contract assets		—			241			241
Other non-current assets		813			—			813
Total non-current assets		2,336			(189	)		2,147
Contract costs		—			7			7
Contract assets		—			17			17
Other current assets		839			—			839
Total current assets		839			24			863
Total assets		3,175			(165	)		3,010
Loyalty programme liability		(343	)		343			—
Trade and other payables		(768	)		171			(597	)
Deferred revenue		—			(490	)		(490	)
Other current liabilities		(193	)		—			(193	)
Total current liabilities		(1,304	)		24			(1,280	)
Loyalty programme liability		(417	)		417			—
Trade and other payables		(121	)		85			(36	)
Deferred revenue		—			(867	)		(867	)
Deferred tax liabilities		(157	)		56			(101	)
Other non-current liabilities		(2,027	)		—			(2,027	)
Total non-current liabilities		(2,722	)		(309	)		(3,031	)
Total liabilities		(4,026	)		(285	)		(4,311	)
Net liabilities		(851	)		(450	)		(1,301	)
Equity share capital		154			—			154
Capital redemption reserve		10			—			10
Shares held by employee share trusts		(5	)		—			(5	)
Other reserves		(2,874	)		—			(2,874	)
Fair value reserve		79			—			79
Currency translation reserve		373			4			377
Retained earnings		1,405			(454	)		951
IHG shareholders’ equity		(858	)		(450	)		(1,308	)
Non-controlling interest		7			—			7
Total equity		(851	)		(450	)		(1,301	)

Impact of IFRS 15 on the Group statement of cash flows

	Year ended 31 December 2017
	As previously reported $m			IFRS 15 adoption $m			As restated $m
Profit for the year		593			(52	)		541
Adjustments reconciling profit for the year to cash flow from operations before contract acquisition costs		263			45			308
Cash flow from operations before contract acquisition costs		856			(7	)		849
Contract acquisition costs, net of repayments		—			(57	)		(57	)
Cash flow from operations		856			(64	)		792
Interest paid		(76	)		7			(69	)
Interest received		1			—			1
Tax paid on operating activities		(147	)		—			(147	)
Net cash from operating activities		634			(57	)		577
Purchase of intangible assets		(229	)		57			(172	)
Other cash flows from investing activities		(34	)		—			(34	)
Net cash from investing activities		(263	)		57			(206	)
Net cash from financing activities		(446	)		—			(446	)
Net movement in cash and cash equivalents in the year		(75	)		—			(75	)
Cash and cash equivalents at beginning of the year		117			—			117
Exchange rate effects		16			—			16
Cash and cash equivalents at end of the year		58			—			58

Impact of IFRS 15 on Basic and Diluted Earnings per Ordinary Share

Impact of IFRS 15 on basic and diluted earnings per ordinary share

	Year ended 31 December 2017
	As previously reported cents		IFRS 15 adoption cents			As restated cents
Basic earnings per ordinary share		306.7		(26.9	)		279.8
Diluted earnings per ordinary share		305.2		(26.8	)		278.4