Vodafone 1999 Annual Report Download - page 56

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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. During the financial
year, the Group has adopted the following Financial Reporting Standards issued by the Accounting Standards Board:
FRS 10 – “Goodwill and Intangible Assets”;
FRS 11 – “Impairment of Fixed Assets and Goodwill”;
FRS 12 – “Provisions, Contingent Liabilities and Contingent Assets”;
FRS 13 – “Derivatives and Other Financial Instruments: Disclosures”; and
FRS 14 – “Earnings Per Share”.
Adoption of FRS 10 has necessitated a change in accounting policy in relation to the treatment of goodwill arising from
acquisitions, which is now capitalised and amortised over its estimated useful economic life. As permitted by FRS 10,
goodwill arising on acquisitions prior to 31 March 1998 has not been reinstated.
The implementation of FRS 12 has required certain balances previously reported within “Creditors: amounts falling due
within one year” to be reanalysed and disclosed within “Provisions for liabilities and charges”. Accordingly, the
comparative balances at 31 March 1998 have been restated by £5.9 million.
The implementation of FRS 13 has required additional disclosures to be made in relation to derivatives and other financial
instruments. Where appropriate, comparative amounts for the year ended 31 March 1998 have also been presented in
these financial statements.
The implementation of FRS 14 has required changes to the methodology for calculating diluted earnings per share and
the disclosure of both basic and diluted earnings per share, regardless of whether the difference is material. Accordingly,
diluted earnings per share has also been calculated and disclosed for the year ended 31 March 1998 in these financial
statements.
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 1999.
Foreign currencies
http://www.vodafone.com/download/investor/reports/annual99/statement_of_accounting_policies.htm (1 of 4)30/03/2007 00:11:50