Vodafone 2007 Annual Report Download - page 147

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Vodafone Group Plc Annual Report 2007 145
Financials
3. Fixed assets
Other investments
The Company’s fixed asset investments were £nil at 31 March 2007 (2006: £133 million). The investment at 31 March 2006 represented 30,252,460 ordinary
shares in VenFin Limited. The investment was held at fair value and disposed of during the year ended 31 March 2007.
Shares in group undertakings
£m
Cost:
1 April 2006 72,160
Additions 59,656
Capital contributions arising from share based payments 93
Contributions received in relation to share based payments (79)
Disposals (59,508)
31 March 2007 72,322
Amounts provided for:
1 April 2006 4,765
Amounts provided for during the year 418
31 March 2007 5,183
Net book value:
31 March 2007 67,139
31 March 2006 67,395
At 31 March 2007, the Company had the following principal subsidiary undertaking:
Country of
incorporation or Percentage
Name Principal activity registration shareholding
Vodafone European Investments Holding company England 100%
4. Debtors
2007 2006
£m £m
Amounts falling due within one year:
Amounts owed by subsidiary undertakings 99,071 99,174
Taxation recoverable 137 72
Other debtors 196 171
99,404 99,417
Amounts falling due after more than one year:
Deferred taxation 35
Other debtors 224 231
227 236
Fair value hedges
The Company’s policy is to use derivative instruments (primarily interest rate
swaps) to convert a proportion of its fixed rate debt to floating rates in order to
hedge the interest rate risk arising, principally, from capital market borrowings.
The Company designates these as fair value hedges of interest rate risk with
changes in fair value of the hedging instrument recognised in the profit and
loss account for the period together with the changes in the fair value of the
hedged item due to the hedged risk, to the extent the hedge is effective. The
ineffective portion is recognised immediately in the profit and loss account.
Share based payments
The Group operates a number of equity settled share based compensation
plans for the employees of subsidiary undertakings, using the Company’s
equity instruments. The fair value of the compensation given in respect of
these share based compensation plans is recognised as a capital contribution
to the Company’s subsidiary undertakings, over the vesting period. The
capital contribution is reduced by any payments received from subsidiary
undertakings in respect of these share based payments.
Dividends paid and received
Dividends paid and received are included in the financial statements in the
period in which the related dividends are actually paid or received or, in
respect of the Company’s final dividend for the year, approved by
shareholders.
Pensions
The Company is the sponsoring employer of the Vodafone Group Pension
Scheme, a defined benefit pension scheme. The Company is unable to
identify its share of the underlying assets and liabilities of the Vodafone
Group Pension Scheme on a consistent and reasonable basis. Therefore, the
Company has applied the guidance within FRS 17 to account for defined
benefit schemes as if they were defined contribution schemes and recognise
only the contribution payable each year. The Company had no contributions
payable for the years ended 31 March 2007 and 31 March 2006.