Vodafone 2012 Annual Report Download - page 91

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89
Vodafone Group Plc
Annual Report 2012
Financial statements and accounting records
Company law of England and Wales requires the directors to prepare
nancial statements for each nancial year which give a true and fair
view of the state of affairs of the Company and of the Group at the end
of the nancial year and of the prot or loss of the Group for that period.
In preparing those nancial statements the directors are required to:
a select suitable accounting policies and apply them consistently;
a make judgements and estimates that are reasonable and prudent;
a state whether the consolidated nancial statements have been
prepared in accordance with International Financial Reporting
Standards (‘IFRS’) as issued by the IASB, in accordance with IFRS as
adopted for use in the EU and Article 4 of the EU IAS Regulations;
a state for the Company nancial statements whether applicable
UKaccounting standards have been followed; and
a prepare the nancial statements on a going concern basis unless it
isinappropriate to presume that the Company and the Group will
continue in business.
The directors are responsible for keeping proper accounting records
which disclose with reasonable accuracy at any time the nancial
position of the Company and of the Group and to enable them to ensure
that the nancial statements comply with the Companies Act 2006
andArticle 4 of the EU IAS Regulation. They are also responsible for the
system of internal control, for safeguarding the assets of the Company
and the Group and, hence, for taking reasonable steps for the prevention
and detection of fraud and other irregularities.
Directors’ responsibility statement
The Board conrms to the best of its knowledge:
a the consolidated nancial statements, prepared in accordance with
IFRS as issued by the International Accounting Standards Board
(‘IASB’) and IFRS as adopted by the EU, give a true and fair view of the
assets, liabilities, nancial position and prot or loss of the Group; and
a the directors’ report includes a fair review of the development and
performance of the business and the position of the Group together
with a description of the principal risks and uncertainties that it faces.
Neither the Company nor the directors accept any liability to any person
in relation to the annual report except to the extent that such liability
could arise under English law. Accordingly, any liability to a person who
has demonstrated reliance on any untrue or misleading statement or
omission shall be determined in accordance with section 90A and
schedule 10A of the Financial Services and Markets Act 2000.
Disclosure of information to auditor
Having made the requisite enquiries, so far as the directors are aware,
there is no relevant audit information (as dened by section 418(3) of
the Companies Act 2006) of which the Company’s auditor is unaware
and the directors have taken all the steps they ought to have taken to
make themselves aware of any relevant audit information and to
establish that the Company’s auditor is aware of that information.
Going concern
After reviewing the Group’s and Company’s budget for the next nancial
year, and other longer term plans, the directors are satised that, at the
time of approving the nancial statements, it is appropriate to adopt the
going concern basis in preparing the nancial statements. Further detail
is included within liquidity and capital resources on pages 55 to 59 and
notes 21 and 22 to the consolidated nancial statements which include
disclosure in relation to the Group’s objectives, policies and processes for
managing its capital; its nancial risk management objectives; details of
its nancial instruments and hedging activities; and its exposures to
credit risk and liquidity risk.
Management’s report on internal control over
nancialreporting
As required by section 404 of the Sarbanes-Oxley Act management is
responsible for establishing and maintaining adequate internal control
over nancial reporting for the Group.
The Group’s internal control over nancial reporting includes policies
and procedures that:
a pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reect transactions and dispositions of assets;
a are designed to provide reasonable assurance that transactions
arerecorded as necessary to permit the preparation of nancial
statements in accordance with IFRS, as adopted by the EU and IFRS
as issued by the IASB, and that receipts and expenditures are being
made only in accordance with authorisation of management and the
directors of the Company; and
a provide reasonable assurance regarding prevention or timely
detection of unauthorised acquisition, use or disposition of the
Group’s assets that could have a material effect on the nancial
statements.
Any internal control framework, no matter how well designed, has
inherent limitations including the possibility of human error and the
circumvention or overriding of the controls and procedures, and
maynot prevent or detect misstatements. Also projections of any
evaluationof effectiveness to future periods are subject to the
riskthatcontrols may become inadequate because of changes in
conditions or because the degree of compliance with the policies
orprocedures may deteriorate.
Management has assessed the effectiveness of the internal control
overnancial reporting at 31 March 2012 based on the Internal Control
– Integrated Framework, issued by the Committee of Sponsoring
Organizations of the Treadway Commission (‘COSO’). Based on
management’s assessment management has concluded that the
internal control over nancial reporting was effective at 31 March 2012.
Management has excluded from its assessment the internal control
over nancial reporting of entities which are accounted for under the
equity method, including Verizon Wireless, because the Group does not
have the ability to dictate or modify the controls at these entities and
does not have the ability to assess, in practice, the controls at these
entities. Accordingly, the internal controls of these entities, which
contributed a net prot of £4,963 million (2011: £5,059 million) to the
prot for the nancial year, have not been assessed, except relating to
controls over the recording of amounts relating to the investments that
are recorded in the Group’s consolidated nancial statements.
During the period covered by this document there were no changes in
the Group’s internal control over nancial reporting that have materially
affected or are reasonably likely to materially affect the effectiveness of
the internal controls over nancial reporting.
The Group’s internal control over nancial reporting at 31 March 2012
has been audited by Deloitte LLP, an independent registered public
accounting rm who also audit the Group’s consolidated nancial
statements. Their audit report on internal control over nancial
reporting is on page 90.
By Order of the Board
Rosemary Martin
Company Secretary
22 May 2012
Directors’ statement of responsibility