Vodafone 2016 Annual Report Download - page 81

Overview Strategy review Performance Governance Financials Additional information
Vodafone Group Plc
Annual Report 2016
79
Audit report on the consolidated and parent company nancial statements
Independent auditors’ report to the members of Vodafone Group Plc
Report on the nancial statements
Our opinion
In our opinion:
a Vodafone Group Plc’s Group nancial statements and Company nancial statements (the ‘nancial statements’) give a true and fair view of the
state of the Group’s and of the Company’s affairs as at 31 March 2016 and of the Group’s loss and cash ows for the year then ended;
a the Group nancial statements have been properly prepared in accordance with International Financial Reporting Standards (‘IFRSs’) as adopted
by the European Union;
a the Company nancial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
a the nancial statements have been prepared in accordance with the requirements of the Companies Act 2006 and, as regards the Group nancial
statements, Article 4 of the IAS Regulation.
Separate opinion in relation to IFRSs as issued by the IASB
As explained in note 1 to the nancial statements, the Group, in addition to applying IFRSs as adopted by the European Union, has also applied IFRSs
as issued by the International Accounting Standards Board (‘IASB’).
In our opinion, the Group nancial statements comply with IFRSs as issued by the IASB.
What we have audited
The nancial statements, included within the 2016 Annual Report (the “Annual Report”), comprise:
a the consolidated statement of nancial position as at 31 March 2016;
a the Company statement of nancial position as at 31 March 2016;
a the consolidated income statement and the consolidated statement of comprehensive income for the year then ended;
a the consolidated statement of cash ows for the year then ended;
a the consolidated statement of changes in equity for the year then ended;
a the Company statement of changes in equity for the year then ended; and
a the notes to the nancial statements, which include a summary of signicant accounting policies and other explanatory information.
Certain required disclosures have been presented elsewhere in the Annual Report, rather than in the notes to the nancial statements. These are
cross-referenced from the nancial statements and are identied as audited.
The nancial reporting framework that has been applied in the preparation of the Group nancial statements is applicable law and IFRSs as adopted
by the European Union. The nancial reporting framework that has been applied in the preparation of the Company nancial statements is United
Kingdom Accounting Standards, comprising FRS 101 “Reduced Disclosure Framework”, and applicable law (together “United Kingdom Generally
Accepted Accounting Practice”).
Our audit approach
Overview
Audit scope
Materiality
Areas of
focus
Overall Group materiality: £180 million which represents 5% of a three year average of adjusted
operating prot (‘AOP’). We used a three year average given the impact of Project Spring investment
(for denition of Project Spring refer to pages 6 and 7 in the Annual Report) in the current year
to ensure that the measure is more durable over a period of time.
We identified eight local operations which, in our view, required an audit of their complete financial
information, either due to their size or their risk characteristics including UK, Spain, Italy, India, Germany
and Vodacom Group Limited. The scope of work in Spain and Germany included an audit of the complete
financial information of Grupo Corporativo Ono.S.A. (‘Ono’) and Kabel Deutschland GmbH (‘KDG’).
Further specic audit procedures over central functions and areas of signicant judgement, including
taxation, goodwill, treasury and material provisions and contingent liabilities, were performed at the
Group’s Head Ofce.
a Taxation matters including a provisioning claim for withholding tax in India and the recognition and
recoverability of deferred tax assets in Luxembourg and Germany.
a Carrying value of goodwill.
a Provisions and contingent liabilities.
a Revenue recognition – accuracy of revenue recorded given the complexity of systems.
a Signicant one-off transactions.
a Capitalisation and asset lives.
a IT systems and controls.