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106 Vodafone Group Plc Annual Report 2011
Notes to the consolidated nancial statements continued
16. Inventory
2011 2010
£m £m
Goods held for resale 537 433
Inventory is reported net of allowances for obsolescence, an analysis of which is as follows:
2011 2010 2009
£m £m £m
1 April 120 111 118
Exchange movements (1) 5 13
Amounts (credited)/charged to the income statement (2) 4 (20)
31 March 117 120 111
Cost of sales includes amounts related to inventory amounting to £5,878 million (2010: £5,268 million; 2009: £4,853 million).
17. Trade and other receivables
2011 2010
£m £m
Included within non-current assets:
Trade receivables 92 59
Other receivables 1,719 678
Prepayments and accrued income 137 148
Derivative financial instruments 1,929 1,946
3,877 2,831
Included within current assets:
Trade receivables 4,185 4,008
Amounts owed by associates 53 24
Other receivables 1,606 1,122
Prepayments and accrued income 3,299 3,448
Derivative financial instruments 116 182
9,259 8,784
The Group’s trade receivables are stated after allowances for bad and doubtful debts based on management’s assessment of creditworthiness, an analysis
of which is as follows:
2011 2010 2009
£m £m £m
1 April 929 874 664
Exchange movements (30) (27) 101
Amounts charged to administrative expenses 460 465 423
Trade receivables written off (353) (383) (314)
31 March 1,006 929 874
The carrying amounts of trade and other receivables approximate their fair value. Trade and other receivables are predominantly non-interest bearing.
2011 2010
£m £m
Included within “Derivative financial instruments”:
Fair value through the income statement (held for trading):
Interest rate swaps 1,292 1,031
Foreign exchange swaps 99 132
1,391 1,163
Fair value hedges:
Interest rate swaps 654 965
2,045 2,128
The fair values of these financial instruments are calculated by discounting the future cash flows to net present values using appropriate market interest
and foreign currency rates prevailing at 31 March.