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Other financial assets
 12 Months Ended
Dec. 31, 2022
Text Block [Abstract]  
Other financial assets
16. Other financial assets
 
            
        2022
$m
            
        2021
$m
  
Equity securities
            
 
103
 
            
 
106
 
Restricted funds:
            
 
 
 
            
 
 
 
Shortfall reserve deposit
a
           
 
–
 
            
 
6
 
Ring-fenced amounts to satisfy insurance claims:
            
 
 
 
            
 
 
 
Cash
a
           
 
2
 
            
 
4
 
Money market funds
            
 
3
 
            
 
8
 
Bank accounts pledged as security
            
 
39
 
            
 
42
 
Other
            
 
1
 
            
 
1
 
 
            
 
45
 
            
 
61
 
Trade deposits and loans
            
 
8
 
            
 
8
 
 
            
 
156
 
            
 
175
 
         
Analysed as:
            
 
 
 
            
 
 
 
Current
            
 
–
 
            
 
2
 
Non-current
            
 
156
 
            
 
173
 
 
            
 
156
 
            
 
175
 
 
a
 
As described on page 168, amounts within these lines have been
re-presented
as cash and cash equivalents.
Equity securities
The methodology to calculate fair value and the sensitivities to the relevant significant unobservable inputs are detailed in note 24. The significant investments are as follows:
 
           
2022
            
2021
  
            
Fair value
$m
     
    Dividend
income
$m
            
Fair value
$m
     
    Dividend
income
$m
  
Investment in entity which owns:
            
 
 
 
   
 
 
 
            
 
 
 
   
 
 
 
InterContinental The Willard Washington DC
            
 
27
 
   
 
–
 
            
 
25
 
   
 
–
 
InterContinental San Francisco
            
 
16
 
   
 
–
 
            
 
17
 
   
 
–
 
InterContinental Grand Stanford Hong Kong
            
 
35
 
   
 
–
 
            
 
35
 
   
 
–
 
Restricted funds
The shortfall reserve deposit is held for the specific purpose of funding shortfalls in owner returns relating to the Barclay associate. Any shortfalls funded are subject to potential clawback in future years. The maximum length of time for which the restricted funds will be held is the life of the hotel management agreement. In 2021, $3m was withdrawn from the deposit to fund working capital requirements. In 2022, the remaining balance was reclassified to cash and cash equivalents reflecting the Group’s ability to access these funds although they are held for a defined purpose under the management agreement. The prior year amount is immaterial and has not been
re-presented.
Amounts ring-fenced to satisfy insurance claims are principally held in the Group’s Captive, which is a regulated entity.
The bank accounts pledged as security (£31m) are subject to a charge in favour of the members of the UK unfunded pension arrangement (see note 26). The amounts pledged as security may change in future years subject to the trustees’ agreement and updated actuarial valuations. The bank accounts will continue to be pledged as security until the date at which the UK unfunded pension liabilities have been fully discharged, unless otherwise agreed with the trustees.
Expected credit losses
Other financial assets with a total value of $50m (2021: $61m) are subject to the expected credit loss model requirements of IFRS 9. Equity securities, money market funds and other amounts measured at fair value are excluded. With the exception of the expected credit loss arising on trade deposits and loans (see below), expected credit losses are considered to be immaterial.
 
                          
2022
                           
2021
  
Trade deposits and loans
          
        Gross
$m
     
    Credit loss
allowance
$m
    
                 Net
$m
            
        Gross
$m
     
    Credit loss
allowance
$m
    
                      Net
$m
  
Amounts due with no significant increase in credit risk since initial recognition
            
 
8
 
   
 
–
 
  
 
8
 
            
 
6
 
   
 
–
 
  
 
6
 
Amounts due with significant increase in credit risk since initial recognition:
            
 
 
 
   
 
 
 
  
 
 
 
            
 
 
 
   
 
 
 
  
 
 
 
Not past due
            
 
1
 
   
 
(1
) 
  
 
–
 
            
 
7
 
   
 
(5
) 
  
 
2
 
Past due
            
 
11
 
   
 
(11
) 
  
 
–
 
            
 
10
 
   
 
(10
) 
  
 
–
 
 
            
 
20
 
   
 
(12
) 
  
 
8
 
            
 
23
 
   
 
(15
) 
  
 
8
 
 
Movement in the allowance for expected credit losses
           
 
    2022
$m
 
 
           
 
      2021
a

$m
 

 
At 1 January
           
 
(15
) 
           
 
(15
) 
Amounts written off
  
 
  
 
   
 
2
 
  
 
  
 
   
 
–
 
Exchange and other adjustments
           
 
1
 
           
 
–
 
At 31 December
           
 
(12
) 
           
 
(15
) 
 
a
 
In 2021, $4m was collected in respect of an asset which was measured at $nil at initial recognition as part of a business acquisition. This did not impact the allowance for expected credit losses.
Credit risk
Restricted funds are held with bank counterparties which are rated at least A+ based on Standard and Poor’s ratings.
The maximum exposure to credit risk of other financial assets at the end of the reporting period by geographic region is as follows:
 
           
    2022
$m
           
          2021
$m
  
Americas
           
 
        54
 
           
 
66
 
EMEAA
           
 
62
 
           
 
67
 
Greater China
  
 
  
 
   
 
40
 
  
 
  
 
   
 
42
 
 
           
 
156
 
           
 
175