Vodafone 1997 Annual Report Download - page 28

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Vodafone Group Plc Annual Report & Accounts for the year ended 31 March 1997
Turnover
Turnover represents the invoiced value, excluding value added tax, of services and goods supplied by the
Group.
Pensions
Costs relating to defined benefit plans which are periodically calculated by professionally qualified
actuaries, are charged against profits so that the expected costs of providing pensions are recognised
during the period in which benefit is derived from the employees' services.
The costs of the various pension schemes may vary from the funding, dependent upon actuarial advice,
with any difference between pension cost and funding being treated as a provision or prepayment.
Defined contribution pension costs charged to the profit and loss account represent contributions payable
in respect of the period.
Research and development
Expenditure on research and development is written-off in the year in which it is incurred.
Scrip dividends
Dividends satisfied by the issue of ordinary shares have been credited to reserves. The nominal value of
the shares issued has been offset against the share premium account.
Intangible fixed assets
Purchased intangible fixed assets, including licence fees, are capitalised at cost except for subscriber
contracts, which are written-off to reserves in the year in which they are acquired.
Network licence costs are amortised over the periods of the licences. Amortisation is charged from
commencement of service of the network. The annual charge is calculated in proportion to the expected
usage of the network during the start up period and on a straight line basis thereafter.
Tangible fixed assets
Tangible fixed assets are stated at cost less accumulated depreciation.
Depreciation is not provided on freehold land. The cost of other tangible fixed assets is written-off, from
the time they are brought into use, by equal instalments over their expected useful lives as follows:
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