Vodafone 2016 Annual Report Download - page 121

Overview Strategy review Performance Governance Financials Additional information
Vodafone Group Plc
Annual Report 2016
119
13. Other investments
We hold a number of other listed and unlisted investments, mainly comprising US$5.0 billion of loan notes from
Verizon Communications Inc.
Accounting policies
Other investments are recognised and derecognised on a trade date where a purchase or sale of an investment is under a contract whose terms
require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, including
transaction costs.
Other investments classied as held for trading and available-for-sale are stated at fair value. Where securities are held for trading purposes, gains
and losses arising from changes in fair value are included in net prot or loss for the period. For available-for-sale investments, gains and losses
arising from changes in fair value are recognised directly in equity, until the security 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.
Other investments classied as loans and receivables are stated at amortised cost using the effective interest method, less any impairment.
2016 2015
£m £m
Included within non-current assets:
Equity securities:
Listed 3 4
Unlisted 82 222
Debt securities:
Public debt and bonds 95 148
Other debt and bonds 3,482 3,383
3,662 3,757
The listed and unlisted securities are classied as available-for-sale. Public debt and bonds are classied as held for trading, and other debt and bonds
which are not quoted in an active market, are classied as loans and receivables.
Unlisted equity investments are recorded at fair value where appropriate.
Other debt and bonds includes loan notes of US$5.0 billion (£3,481 million) issued by Verizon Communications Inc. as part of the Group’s disposal
of its interest in Verizon Wireless all of which is recorded within non-current assets. The carrying amount of these loan notes approximates fair value.
Current other investments comprise the following:
2016 2015
£m £m
Included within current assets:
Debt securities:
Public debt and bonds 888 982
Other debt and bonds 2,541 2,223
Cash and other investments held in restricted deposits 791 650
4,220 3,855
Public debt and bonds are classied as held for trading. Cash held in restricted deposits are classied as loans and receivables and include amounts
held in qualifying assets by Group insurance companies to meet regulatory requirements.
Other debt and bonds includes £967 million (2015: £2,016 million) of assets held for trading in managed investment funds with liquidity of up to 90
days and £1,574 million (2015: £38 million) of assets classied as loans and receivables comprising collateral paid on derivative nancial instruments.
Collateral passed in 2016 includes £1,460 million in relation to put options issued with regard to the mandatory convertible bonds’ hedging strategy.
Current public debt and bonds include government bonds of £659 million (2015: £830 million) which consist of highly liquid index linked gilts with
less than two years to maturity held on an effective oating rate basis.
For public debt and bonds, other debt and bonds and cash held in restricted deposits, the carrying amount approximates fair value.