Vodafone 2014 Annual Report Download - page 180

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1. Basis of preparation (continued)
Fair value hedges
The Company’s policy is to use derivative instruments (primarily interest rate swaps) to convert a proportion of its xed rate debt to oating 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
prot 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 prot and loss account.
Pensions
The Company is the sponsoring employer of the Vodafone Group pension scheme, a dened benet 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 dened benet schemes as if they were dened contribution schemes
and recognise only the contribution payable each year. The Company had no contributions payable for the years ended 31 March 2014 and
31 March 2013.
2. Fixed assets
Accounting policies
Shares in Group undertakings are stated at cost less any provision for impairment.
The Company assesses investments for impairment whenever events or changes in circumstances indicate that the carrying value of an investment
may not be recoverable. If any such indication of impairment exists, the Company makes an estimate of the recoverable amount. If the recoverable
amount of the cash-generating unit is less than the value of the investment, the investment is considered to be impaired and is written down to its
recoverable amount. An impairment loss is recognised immediately in the prot and loss account.
Shares in Group undertakings
£m
Cost:
1 April 2013 70,716
Additions:
Capital contributions arising from share-based payments 103
Contributions received in relation to share-based payments (177)
31 March 2014 70,642
Amounts provided for:
1 April 2013 5,631
Amounts provided in the year 74
31 March 2014 5,705
Net book value:
31 March 2013 65,085
31 March 2014 64,937
At 31 March 2014 the Company had the following principal subsidiary:
Name Principal activity
Countryof
incorporation
Percentage
shareholding
Vodafone European Investments Holding company England 100
3. Debtors
20142013
£m £m
Amounts falling due within one year:
Amounts owed by subsidiaries 171,709 163,238
Taxation recoverable 72 126
Other debtors 772 184
172,553 163,548
Amounts falling due after more than one year:
Deferred taxation 1 1
Other debtors 2,090 2,693
2,091 2,694
Vodafone Group Plc
Annual Report 2014178
Notes to the Company nancial statements (continued)