Vodafone 1998 Annual Report Download - page 56

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Vodafone Report and Accounts - Financial Review - Balance Sheet
Balance Sheet
Fixed assets
Total fixed assets decreased by £15.1m, primarily due to the effect of
increased capital expenditure being offset by goodwill written-off on
acquisitions. Intangible fixed assets, which are capitalised in accordance with
the Group's accounting policy, decreased by £9.8m as the cost of spectrum
purchases in the Netherlands were offset by the impact of exchange rates
and amortisation. Tangible fixed assets increased by £311.4m, primarily as a
result of capital expenditure on digital networks in the UK, Australia and
Greece together with the inclusion of the fixed assets of Libertel, the Dutch
network operator, acquired in the year. The movement in investments, which
includes equity investments and loans advanced to associates and other
investments, is analysed here.
Working capital
Working capital (excluding amounts contained within Group net debt)
decreased by 2.1%, primarily as a result of an increase in creditors due within
one year of £129.5m offset by a £112.9m increase in debtors. The increases
are due to the growth in the business and the inclusion of working capital
balances of subsidiaries acquired in the year.
Equity shareholders' funds
The Group's equity shareholders' funds do not include any valuations that
could be placed on licences which were acquired for no initial cost. Licences
which have an initial cost to the Group are capitalised at cost and written-off in
accordance with the Group's accounting policy. The balance sheet also
excludes any value attributed to future income streams that are anticipated
from existing customers.
Equity shareholders' funds decreased by £487.5m to £282.5m as retained
profits of £248.5m and £74.5m of goodwill written back on the disposal of
businesses were more than offset by goodwill written-off of £709.7m in
respect of acquisitions made during the year and £147.2m of currency
translation adjustments to the carrying value of overseas investments
reflecting the strength of sterling at the year end.
http://www.vodafone.com/download/investor/reports/annual98/financialreview/balsheet.html29/03/2007 23:09:04