Vodafone 2003 Annual Report Download - page 127

Vodafone Group Plc Annual Report & Accounts and Form 20-F 2003 125
Summary consolidated cash flow information as presented in accordance with US GAAP
2003 2003 2002 2001
$m £m £m £m
Cash and cash equivalents were (used in)/provided by:
Operating activities 13,172 8,342 2,885 (1,853)
Investing activities (15,018) (9,511) (11,999) 11,995
Financing activities 282 178 2,089 (2,699)
Net (decrease)/increase in cash and cash equivalents (1,564) (991) (7,025) 7,443
Acquisitions (excluding cash and overdrafts) ––1,309 –
Exchange movement (177) (112) (76) 29
Cash and cash equivalents at the beginning of year 2,951 1,869 7,661 189
Cash and cash equivalents at the end of year 1,210 766 1,869 7,661
A reconciliation between the consolidated statements of cash flows presented in accordance with UK GAAP and US GAAP is set out below:
2003 2003 2002 2001
$m £m £m £m
Operating activities:
Net cash inflow from operating activities (UK GAAP) 17,593 11,142 8,102 4,587
Tax paid (1,394) (883) (545) (1,585)
Net interest paid (870) (551) (936) (47)
Decrease in short term borrowings (2,157) (1,366) (3,742) (4,765)
Increase/(decrease) in bank overdrafts ––6 (43)
Net cash provided by/(used in) operating activities (US GAAP) 13,172 8,342 2,885 (1,853)
Investing activities:
Net cash (outflow)/inflow from capital expenditure, financial investments and
acquisitions and disposals (UK GAAP) (16,190) (10,253) (12,138) 11,642
Dividends received from joint ventures and associated undertakings 1,172 742 139 353
Net cash (used in)/provided by investing activities (US GAAP) (15,018) (9,511) (11,999) 11,995
Financing activities:
Net cash outflow from financing activities (UK GAAP) (214) (136) (675) (6,691)
Decrease in short term borrowings 2,157 1,366 3,742 4,765
Dividends paid (1,661) (1,052) (978) (773)
Net cash provided by/(used in) financing activities (US GAAP) 282 178 2,089 (2,699)
Summary of differences between UK GAAP and US GAAP
The Consolidated Financial Statements are prepared in accordance with UK GAAP, which differ in certain material respects from US GAAP. The differences
that are material to the Group relate to the following items and the necessary adjustments are shown on pages 122 to 125.
(a) Non-consolidated subsidiaries and investments accounted for under the equity method
Under UK GAAP, the results and assets of Vodafone Italy have been consolidated in the Group’s financial statements from 12 April 2000. Under US GAAP, as
a result of significant participating rights held by minority shareholders, the Group’s interest in Vodafone Italy has been accounted for as an associated
undertaking under the equity method of accounting. Under UK GAAP Vodafone Spain has been consolidated in the Group’s financial statements from
29 December 2000. Under US GAAP, the Group’s interests in Vodafone Spain, have been accounted for as an associated undertaking under the equity
method of accounting up to 29 June 2001 and consolidated thereafter, following the completion of the acquisition of a further 17.8% shareholding in
Vodafone Spain.
Under UK GAAP, charges for interest and taxation for joint ventures and associated undertakings are aggregated within the Group interest and taxation
amounts shown on the face of the profit and loss account. The Group’s share of the turnover of joint ventures and associated undertakings is also permitted
to be disclosed on the face of the consolidated profit and loss account. In addition, the Group’s share of gross assets and gross liabilities of joint ventures are