Vodafone profits from new rules

Vodafone Group Plc chief executive Arun Sarin says a switch to international accounting rules will allow the world’s biggest mobile-phone operator to book a profit next year after losses of £48.1 billion ($93bn) since 2000.

Rules taking effect in the European Union on January 1 will let Vodafone stop writing off goodwill tied to the Newbury, England-based company’s $206bn purchase of Mannesmann AG in 2000.

In fiscal 2004, goodwill, the part of an acquisition price for such things as brand value, turned a £6.19bn profit into a £9.02bn loss under British accounting rules.