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Financial Reporting - Essay Example
Author : kubchance
Finance & Accounting
Pages 6 (1506 words)
Financial Reporting Introduction Intercontinental Hotels Group Plc (IHG) is a British multinational company in the hotel industry. It is headquartered in Denham, UK, and it is the largest hotels company globally operating seven brands. It has over 4,500 hotels in over 100 countries…
InterContinental Hotels primarily listed on the London Stock exchange and is a constituent of the FTSE 100 Index. It is secondary listed on the New York Stock Exchange. This report is concerned with the performance of the group in the last Accounting period, 2011. Therefore, performance analysis will compare results of 2011 with those of 2010. We will also analyze segmental information of the group by comparing 2011 results with 2010 results. 1.1 Analysis of segmental information In this analysis, we will consider two segments in IHG which are the business segments and the geographical segments (IHG Annual report 2011). Geographical segments include America, Europe, great China, AMEA and Central. You find that IHGs target market is in the developed markets and the emerging markets. As discussed earlier, IHG has four business segments with regard to the percentage of control. They include the Franchised, managed, owned and leased and central parts of the business. a. Revenue Looking at the 2011 financial report, there was no significant change in the percentage of revenue contribution by each business segment. The percentage of revenue contribution by franchised part of the business remained the same at 34% compared with year 2010. For the owned and leased segment, revenue contribution dropped by 2% from 35% in 2010 to 33% in 2011. ...