Vodafone 2005 Annual Report Download - page 121

Download and view the complete annual report

Please find page 121 of the 2005 Vodafone annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 156

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156

Financials |119
Additional disclosures in respect of FRS 17
The most recent full formal actuarial valuations for defined benefit schemes have been updated by qualified independent actuaries for the financial year ended 31 March
2005 to derive the FRS 17 disclosures below.
Major assumptions used
UK Germany Japan Other(2)
2005 2004 2003 2005 2004 2003 2005 2004 2003 2005 2004 2003
%%%%%%%%%%%%
Rate of inflation 2.8 2.5 2.5 1.9 2.0 1.5 –––2.0 2.0 1.8
Rate of increase in salaries 4.8 4.5 4.5 2.9 3.0 3.5 –(1) –(1) –(1) 2.6 3.0 3.5
Rate of increase in pensions in payment 2.8 2.5 2.5 1.9 2.0 1.5 N/a N/a N/a 2.0 2.0 1.9
Rate of increase in deferred pensions 2.8 2.5 2.5 1.9 ––N/a N/a N/a 2.0 2.0 1.9
Discount rate 5.4 5.5 5.4 4.5 5.3 5.3 2.3 2.3 1.5 4.7 4.8 5.3
Notes:
(1) Rate of increase in salaries in Japan is calculated in line with company specific experience.
(2) Figures shown for other schemes represent weighted average assumptions of individual schemes.
The expected rates of return at 31 March were:
UK Germany Japan Other
2005 2004 2003 2005 2004 2003 2005 2004 2003 2005 2004 2003
%%%%%%%%%%%%
Bonds 4.8 4.8 5.5 4.0 4.5 4.8 1.6 1.0 N/a 4.3 4.6 4.9
Equities 7.7 7.5 8.0 6.6 6.8 7.3 4.3 4.0 N/a 6.8 6.8 7.8
Other assets 4.9 ––2.1 2.0 2.8 2.8 – 3.0 4.3 2.0 3.5
Charges that would have been made to the profit and loss account and consolidated statement of total recognised gains and
losses on compliance with FRS 17 and on the basis of the assumptions stated above
UK Germany Japan Other Total
2005 2004 2005 2004 2005 2004 2005 2004 2005 2004
£m £m £m £m £m £m £m £m £m £m
Operating profit:
Current service cost 37 32 68510 30 44 78 94
Past service cost –––––––1–1
Total charge to operating profit 37 32 68510 30 45 78 95
Finance costs/(income):
Interest cost 26 22 99116642 38
Expected return on pension scheme assets (31) (22) (8) (5) ––(3) (2) (42) (29)
Total (credit)/charge to finance (income)/costs (5) –141134–9
Total charge to loss before taxation 32 32 712 611 33 49 78 104
Consolidated statement of total recognised gains and losses:
Actual return less expected return on pension scheme assets (23) (56) 1(3) ––(2) (7) (24) (66)
Experience (gains) and losses arising on the scheme liabilities 56 –33–(1) 1(3) 60 (1)
Changes in assumptions underlying the present value of
the plan liabilities 39 16 16 11 –(5) 11 (2) 66 20
Actuarial (gains)/losses on assets and liabilities 72 (40) 20 11 –(6) 10 (12) 102 (47)
Exchange rate movements ––1(1) (2) (3) 1(5) –(9)
Total (gains)/losses recognised in statement of total recognised
gains and losses 72 (40) 21 10 (2) (9) 11 (17) 102 (56)