Mandarin Oriental International Limited - Mandarin Oriental Hotel ...

More documents

Recommendations

Info

Consolidated Cash Flow Statement for the year ended 31st December 2008 30 Mandarin Oriental International Limited Restated 2008 2007 Note US$m US$m Operating activities Operating profit 86.2 107.7 Depreciation 9 37.8 37.6 Amortization of intangible assets 8 1.5 0.9 Non-cash items 25a 3.2 (3.9 ) Movements in working capital 25b 0.5 5.3 Interest received 13.4 18.5 Interest and other financing charges paid (31.8 ) (34.9 ) Tax paid (6.9 ) (14.0 ) 103.9 117.2 Dividends from associates and joint venture 20.0 12.3 Cash flows from operating activities 123.9 129.5 Investing activities Purchase of tangible assets (68.8 ) (50.1 ) Purchase of intangible assets (9.6 ) (5.0 ) Advance of mezzanine loans (1.4 ) (3.4 ) Repayment of mezzanine loan – 12.0 Increase in other investments (0.7 ) (0.2 ) Proceeds on disposal related to an associate 25c – 70.7 Capital distribution from associates 25d 23.2 14.4 Cash flows from investing activities (57.3 ) 38.4 Financing activities Issue of shares 5.8 3.5 Drawdown of borrowings 35.3 535.9 Repayment of borrowings (11.9 ) (464.4 ) Dividends paid by the Company 24 (68.7 ) (38.7 ) Dividends paid to minority shareholders (0.1 ) – Cash flows from financing activities (39.6 ) 36.3 Effect of exchange rate changes (4.4 ) 1.3 Net increase in cash and cash equivalents 22.6 205.5 Cash and cash equivalents at 1st January 492.1 286.6 Cash and cash equivalents at 31st December 25e 514.7 492.1
Principal Accounting Policies A Basis of preparation The financial statements have been prepared in accordance with International Financial Reporting Standards, including International Accounting Standards and Interpretations adopted by the International Accounting Standards Board. The financial statements have been prepared under the historical cost convention except as disclosed in the accounting policies below. i) Interpretations effective in 2008 which are relevant to the Group’s operations IFRIC 11 ‘IFRS 2 – Group and Treasury Share Transactions’ provides guidance on whether share-based payment transactions involving treasury shares or involving entities within a group should be accounted for as equity-settled or cash-settled share-based transactions in the separate financial statements of the entities. IFRIC 14 ‘IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction’ provides guidance on assessing the limit in IAS 19 on the amount of surplus that can be recognized as an asset under a defined benefit plan. It also explains how the pension asset or liability may be affected by a statutory or contractual minimum funding requirement. The adoption of the above interpretations did not have a material impact on the Group’s financial statements. ii) Standards, amendments and interpretations effective after 2008 which are relevant to the Group’s operations but will have no material impact on the Group’s accounting policies IAS 23 ‘Borrowing Costs’ (effective from 1st January 2009) supersedes IAS 23 (as revised in 1993) and requires the capitalization of borrowing costs relating to qualifying assets. Amendments to IFRS 2 ‘Vesting Conditions and Cancellations’ (effective from 1st January 2009) restrict vesting conditions to service conditions and performance conditions, and specify that a failure to meet a non-vesting condition, whether by the entity or by the counterparty, should be treated as a cancellation. IAS 16 (Amendment) ‘Property, Plant and Equipment’ and the consequential amendment to IAS 7 ‘Statement of Cash Flows’ (effective from 1st January 2009) is part of the 2008 improvement project. It specifies that entities whose ordinary activities include renting and subsequently selling the same items of property, plant and equipment should recognize revenue from both renting and selling the assets. The cash flows arising from purchase, rental and sale of those assets are classified as cash flows from operating activities. IAS 19 (Amendment) ‘Employee Benefits’ (effective from 1st January 2009) is part of the 2008 improvement project. It clarifies the distinction between curtailments and negative past service costs under a defined benefit plan. IAS 38 (Amendment) ‘Intangible Assets’ (effective from 1st January 2009) is part of the 2008 improvement project. It clarifies that expenditure on advertising and other promotional activities must be recognized in the period in which the entity obtains the right to access the advertising or promotional material. Amendment to IAS 39 ‘Eligible Hedged Items’ (effective from 1st July 2009) clarifies how the principles that determine whether a hedged risk or portion of cash flows is eligible for designation should be applied in particular situations. IFRIC 16 ‘Hedges of a Net Investment in a Foreign Operation’ (effective from 1st October 2008) addresses the nature of the hedged risk and amount of the hedged item for which a hedging relationship may be designated in the consolidated financial statements of a parent entity. Annual Report 2008 31
Page 1: Mandarin Oriental International Lim
Page 4 and 5: Contents 1 Corporate Overview 3 Cor
Page 6 and 7: Highlights Mandarin Oriental Intern
Page 8 and 9: Chairman’s Statement Overview Des
Page 10 and 11: Group Chief Executive’s Review Bu
Page 12 and 13: Group Chief Executive’s Review Co
Page 14 and 15: Group Chief Executive’s Review Co
Page 16 and 17: Operating Summary There are 23 hote
Page 18 and 19: Development Portfolio Mandarin Orie
Page 20 and 21: International Recognition Continued
Page 22 and 23: Financial Review Continued In 2008,
Page 24 and 25: Financial Review Continued Cash flo
Page 26 and 27: Financial Review Continued Treasury
Page 28 and 29: Directors’ Profiles Continued Lor
Page 30 and 31: Consolidated Balance Sheet as at 31
Page 34 and 35: Principal Accounting Policies Conti
Page 42 and 43: Financial Risk Management A Financi
Page 44 and 45: Financial Risk Management Continued
Page 46 and 47: Critical Accounting Estimates and J
Page 48 and 49: Notes to the Financial Statements 1
Page 50 and 51: Notes to the Financial Statements C
Page 76 and 77: Principal Subsidiaries, Associates,
Page 78 and 79: Independent Auditor’s Report To t
Page 80 and 81: Responsibility Statement The Direct
Page 82 and 83:
Corporate Governance Continued Dire
Page 84 and 85:
Corporate Governance Continued Dire
Page 86 and 87:
Principal Risks and Uncertainties C
Page 88 and 89:
Mandarin Oriental Hotel Group Conta
Page 90 and 91:
Sales and Reservations Offices Mand
Page 92:
Mandarin Oriental International Lim
show all

Mandarin Oriental International Limited - Mandarin Oriental Hotel ...

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?