Vodafone 2014 Annual Report Download - page 181

4. Other investments
Accounting policies
Gains and losses arising from changes in fair value of available-for-sale investments are recognised directly in equity, until the investment is disposed
of or is determined to be impaired, at which time the cumulative gain or loss previously recognised in equity, determined using the weighted average
cost method, is included in the net prot or loss for the period.
2014 2013
£m £m
Investments 130 117 
5. Creditors
Accounting policies
Capital market and bank borrowings
Interest bearing loans and overdrafts are initially measured at fair value (which is equal to cost at inception) and are subsequently measured
at amortised cost using the effective interest rate method, except where they are identied as a hedged item in a fair value hedge. Any difference
between the proceeds net of transaction costs and the settlement or redemption of borrowings is recognised over the term of theborrowing.
2014 2013
£m £m
Amounts falling due within one year:
Bank loans and other loans 4,120 7,474
Amounts owed to subsidiaries 169,845 104,872
Other creditors 161 242
Accruals and deferred income 17 1,042
174,143 113,630
Amounts falling due after more than one year:
Other loans 17,504 24,594
Other creditors 751 912
18,255 25,506
Included in amounts falling due after more than one year are other loans of £8,584 million, which are due in more than ve years from 1 April 2014
and are payable otherwise than by instalments. Interest payable on these loans ranges from 2.5% to 7.875%.
6. Share capital
Accounting policies
Equity instruments issued by the Company are recorded at the proceeds received, net of direct issuance costs.
2014 2013
Number £m Number £m
Ordinary shares of 2020/21 US cents each allotted,
issued and fully paid:1,2
1 April 53,820,386,309 3,866 53,815,007,289 3,866
Allotted during the year 1,423,737 –5,379,020 –
Consolidated during the year3(24,009,886,918) – – –
Cancelled during the year (1,000,000,000) (74) – –
31 March 28,811,923,128 3,792 53,820,386,309 3,866
Notes:
1 50,000 (2013: 50,000) 7% cumulative xed rate shares of £1 each were allotted, issued and fully paid by the Company.
2 At 31 March 2014 the Company held 2,371,962,907 (2013: 4,901,767,844) treasury shares with a nominal value of £312 million (2013: £352 million).
3 On 19 February 2014, we announced a “6 for 11” share consolidation effective 24 February 2014. This had the effect of reducing the number of shares in issue from 52,821,751,216 ordinary shares (including 4,351,833,492
ordinary shares held in Treasury) as at the close of business on 18 February 2014 to 28,811,864,298 new ordinary shares in issue immediately after the share consolidation on 24 February 2014.
During the year, we issued 14,732,741,283 B shares of $1.88477 per share and 33,737,176,433 C shares of $0.00001 per share as part of the
Return of Value following the disposal of our US Group, whose principal asset was its 45% stake in Verizon Wireless (‘VZW’). The B shares were
cancelled as part of the Return of Value. The C shares were reclassied as deferred shares with no substantive rights as part of the Return of Value
and transferred to LDC (Shares) Limited (‘LDC’). After 22 February 2015 and without prior notice we may repurchase, or be required by LDC
to repurchase, and then subsequently cancel all deferred shares for a total price of not more than one cent for all deferred shares repurchased.
Allotted during the year
Nominal Net
value proceeds
Number £m £m
UK share awards and option scheme awards – – –
US share awards and option scheme awards 1,423,737 – –
Total for share awards and option scheme awards 1,423,737 – –
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