Vodafone 1998 Annual Report Download - page 78

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Statement Of Accounting Policies
STATEMENT OF ACCOUNTING POLICIES
Basis of accounting
The financial statements have been prepared in accordance with applicable accounting standards, including FRS9,
"Associates and Joint Ventures", which was issued by the Accounting Standards Board in November 1997. Adoption of FRS9
has necessitated the restatement of comparative data.
The particular accounting policies adopted are described below.
Accounting convention
The financial statements are prepared under the historical cost convention.
Basis of consolidation
The Group financial statements consolidate the financial statements of the Company and its subsidiaries and include the
Group's share of results of associated undertakings for financial statements made up to 31 March 1998.
Goodwill
The surplus of cost over fair value attributed to the net assets (excluding goodwill) of subsidiary or associated undertakings
acquired during the year is written-off directly to reserves.
Foreign currencies
Transactions in foreign currencies are recorded at the exchange rates ruling on the dates of those transactions, adjusted for
the effects of any hedging arrangements. Foreign currency monetary assets and liabilities, including the Group's interest in
the underlying net assets of associated undertakings, are translated into sterling at year end rates.
The results of the international subsidiary and associated undertakings are translated into sterling at average rates of
exchange. The adjustment to year end rates is taken to reserves. Exchange differences which arise on the retranslation of
international subsidiary and associated undertakings, balance sheets at the beginning of the year and equity additions and
withdrawals during the financial year are dealt with as a movement in reserves.
Other translation differences are dealt with in the profit and loss account.
Turnover
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