Vodafone 2003 Annual Report Download - page 108

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Vodafone Group Plc Annual Report & Accounts and Form 20-F 2003
106
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Continued
24. Reserves
Group Company
Share Profit Profit
premium Merger Other and loss and loss
account reserve reserve account account
£m £m £m £m £m
1 April 2002 52,044 98,927 935 (25,606) 3,351
Allotments of shares 29 ––––
(Loss)/profit for the financial year –––(10,973) 4,876
Currency translation –––9,039 –
Transfer to profit and loss account ––(92) 92 92
Other movements –––1 –
31 March 2003 52,073 98,927 843 (27,447) 8,319
The currency translation movement includes a loss of £826m (2002: £517m gain) in respect of foreign currency net borrowings.
For acquisitions prior to 1 April 1998, the cumulative goodwill written off to reserves, net of the goodwill attributed to business disposals, was £1,190m at
31 March 2003 (2002: £1,190m).
In accordance with the exemption allowed by section 230 of the Companies Act, no profit and loss account has been presented by the Company. The profit
for the financial year dealt within the accounts of the Company was £6,030m (2002: £1,987m).
25. Non-equity minority interests
Non-equity minority interests comprise £1,015m of class D & E preferred shares issued by AirTouch (2002: £1,124m) and £Nil non-cumulative redeemable
preference shares issued by Vodafone Australia (2002: £4m).
An annual dividend of $51.43 per class D & E preferred share is payable quarterly in arrears. The dividend for the year amounted to £55m (2002: £61m).
The aggregate redemption value of the class D & E preferred shares is $1.65 billion. The holders of the preferred shares are entitled to vote on the election
of directors and upon each other matter coming before any meeting of the stockholders on which the holders of common stock are entitled to vote. Holders
are entitled to vote on the basis of twelve votes for each share of class D or E preferred stock held. The maturity date of the 825,000 class D preferred
shares is 6 April 2020. The 825,000 class E preferred shares have a maturity date of 1 April 2020. The class D & E preferred shares have a redemption
price of $1,000 per share plus all accrued and unpaid dividends.
26. Acquisitions and disposals
The Group has undertaken a number of transactions during the year, including the acquisition of additional minority stakes in certain existing subsidiary
undertakings, additional stakes in associated undertakings and the acquisition of the remaining 50% shareholding in Vizzavi. The aggregate consideration for
these acquisitions was £5,496m and comprised entirely of cash.
Under UK GAAP, the total goodwill capitalised in respect of transactions has been provisionally assessed as £4,586m, of which £3,284m, £1,296m and £6m
is in respect of subsidiary undertakings, associated undertakings and customer bases, respectively.
Under US GAAP, these transactions have resulted in the Group assigning £4,679m to intangible assets, of which £108m was assigned to goodwill, £4,270m
to cellular licences and £301m to customer bases. All intangible assets acquired are deemed to be of finite life, with a weighted average amortisation period
of 12 years, comprising cellular licences 16 years and customer bases 5 years.