Vodafone 2007 Annual Report Download - page 144

142 Vodafone Group Plc Annual Report 2007
Notes to the Consolidated Financial Statements
continued
38. US GAAP information continued
The Group has adopted SFAS No. 123 (Revised 2004) using the modified
retrospective method. Under this method, the Group has adjusted the
financial statements for the periods between 1 April 1995 and 30 September
2005 to give effect to the fair value method of accounting for awards granted,
modified or settled during those periods on a basis consistent with the pro
forma amounts disclosed under the requirements of the original SFAS
No. 123, “Accounting for Stock-Based Compensation”. The provisions of SFAS
No. 123 (Revised 2004) will be applied to all awards granted, modified or
settled after 1 October 2005. The effect of applying the original provisions of
SFAS No. 123 under the modified retrospective method of adoption on the
year ended 31 March 2005 was to decrease loss before income taxes, loss
from continuing operations and net loss by £66 million, £30 million and
£30 million respectively (six months ended 30 September 2005: increases of
£4 million, £8 million and £8 million respectively). The adjustment also had
the effect of decreasing both basic and diluted loss per share from continuing
operations and net loss by 0.05 pence (six months ended 30 September
2005: increase 0.01 pence). The adoption of SFAS No. 123 (Revised 2004)
increased shareholders’ equity at 1 April 2004 by £112 million.
k. Loss per share
The share options and shares described in note 20 were excluded from the
calculation of diluted loss per share as the effect of their inclusion in the
calculation would be not dilutive due to the Group recognising a loss in all
periods presented.
39. New accounting standards
IFRS
The Group has not adopted the following pronouncements, which have been
issued by the IASB, but have not yet been endorsed for use in the EU.
•IFRS 8, “Operating Segments” (effective for annual periods beginning on or
after 1 January 2009, with early application permitted). If endorsed for use
in the EU, the Group currently intends to adopt this standard in the 2008
financial year. The standard is not expected to significantly impact the
Group but may change the Group’s disclosure in relation to segment
information.
•IAS 23 Revised, “Borrowing Costs” (effective for annual periods beginning
on or after 1 January 2009, with early application permitted). This revised
standard has not yet been endorsed for use in the EU. The Group is
currently assessing the impact and expected timing of adoption of this
standard on the Group’s results and financial position.
The Group has not adopted the following pronouncements, which have been
issued by the IASB or the International Financial Reporting Interpretations
Committee (“IFRIC”). The Group does not currently believe the adoption of
these pronouncements will have a material impact on the consolidated
results or financial position of the Group.
•IAS Amendment, “Amendment to IAS 1, “Presentation of Financial
Statements” – Capital Disclosures” (effective for annual periods beginning
after 1 January 2007, with earlier application encouraged). This amendment
has been endorsed for use in the EU.
•IFRIC 10, “Interim Financial Reporting and Impairment” (effective for annual
periods beginning on or after 1 November 2006, with early application
encouraged). This interpretation has not yet been endorsed for use in the EU.
•IFRIC 11, “IFRS 2 – Group Treasury Share Transactions” (effective for annual
periods beginning on or after 1 March 2007, with early application
permitted). This interpretation has not yet been endorsed for use in the EU.
•IFRIC 12, “Service Concession Arrangements” (effective for annual periods
beginning on or after 1 January 2008, with early application permitted). This
interpretation has not yet been endorsed for use in the EU.
US GAAP
FASB Interpretation No. 48
FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes”
(“FIN 48”), an interpretation of SFAS No. 109, “Accounting for Income Taxes”,
prescribes a recognition threshold and measurement attribute for the
financial statement recognition and measurement of a tax position taken or
expected to be taken in a tax return. FIN 48 also provides guidance on
derecognition, classification, interest and penalties, accounting in interim
periods, disclosure and transition. The Group will adopt FIN 48 with effect
from 1 April 2007 and is currently assessing the impact of the adoption of
this standard on the Group’s results and financial position.
EITF Issue 06-1
EITF Issue 06-1, “Accounting for Consideration Given by a Service Provider to
Manufacturers or Resellers of Equipment Necessary for an End-Customer to
Receive Service From the Service Provider” (Issue 06-1), requires the income
statement classification of consideration provided to a manufacturer or
reseller to be determined based on the form of the consideration rendered to
the end customer as directed by the service provider, if the consideration is
contractually linked to the benefit received by the end customer. Under this
standard, “cash consideration” would be classified as a reduction in revenue
while “other than cash consideration” would be accounted for as an expense.
The Group will adopt Issue 06-1 no later than 1 April 2008 and is currently
assessing the impact of the adoption of this standard on the Group’s results
and financial position.
SFAS No. 157
SFAS No. 157, “Fair Value Measurements” (“SFAS 157”) defines fair value,
establishes a framework for measuring fair value and expands disclosure of
fair value measurements. SFAS 157 applies to fair value measurements under
other existing accounting pronouncements that require or permit fair value
measurements and does not require any new fair value measurements. The
Group will adopt SFAS 157 no later than 1 April 2008 and is currently
assessing the impact of the adoption of this standard on the Group’s results
and financial position.