Vodafone 1997 Annual Report Download - page 41

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Vodafone Group Plc Annual Report & Accounts for the year ended 31 March 1997
Cumulative pension cost (2.2) (2.2)
Other (2.1) (1.7)
Shareholders' equity in accordance with US GAAP 1,336.9 1,241.3
Total assets
1997 1996
£m £m
Total assets as reported in accordance with UK GAAP 2,421.8 1,763.4
Items increasing/(decreasing) total assets:
Goodwill - net of amortisation 456.8 114.3
Investment in associated undertakings - net of amortisation 125.7 130.7
Revaluation of marketable securities -7.9
Licence fee amortisation (13.9) (13.6)
Cumulative capitalisation of interest costs - net of amortisation 0.2 0.6
Pension prepayment (2.3) (2.1)
Total assets in accordance with US GAAP 2,988.3 2,001.2
Summary of differences between accounting principles generally accepted in the UK and the US
The consolidated financial statements are prepared in accordance with accounting principles generally
accepted in the UK ('UK GAAP'), which differ in certain material respects from those generally accepted
in the US ('US GAAP'). The differences that are material to the Group relate to the following items and
the necessary adjustments are shown above.
Goodwill and equity in losses of associated undertakings
Under UK GAAP, costs of acquisition in excess of the fair value of the attributable net assets of acquired
businesses at the date of acquisition may be capitalised or may be written-off against shareholders' equity,
either in the fiscal year of acquisition or in a subsequent fiscal year. The Group has written-off such
goodwill against shareholders' equity in the fiscal year of acquisition. Under US GAAP, goodwill must be
capitalised and amortised against income over the estimated period of benefit, but not in excess of 40
years.
Investments in associated undertakings can also include an element of goodwill in the amount of the
excess of the investment over Vodafone Group Plc's share in the fair value of the net assets at the date of
investment. For US GAAP purposes the Group would capitalise and amortise goodwill over the estimated
http://www.vodafone.com/download/investor/reports/annual97/4/8.htm (2 of 4)29/03/2007 22:37:32