Vodafone prepares for new accounting rules

Vodafone is preparing for the adoption of International Financial Reporting Standards as its primary accounting basis for the year ending March 31, 2006.

As part of this transition, Vodafone today released financial information prepared in accordance with IFRS for the six months to September 30, 2004, and, for illustrative purposes only, pro forma financial information for the year ended March 31, 2004.

The primary changes to Vodafone’s reported financial information from the adoption of IFRS are as a result of the requirement not to amortise goodwill; the proportionate consolidation for certain group interests, most notably Vodafone Italy, resulting from their reclassification as joint ventures; and the requirement to amortise mobile licences on a straight line basis.

Financial director Ken Hydon said: “The financial information provided today shows how IFRS impacts on Vodafone’s recent results in advance of its adoption in the next financial year.

“The most significant change is that Vodafone will no longer amortise goodwill, resulting in a clearer presentation of underlying business performance.”

The figures are available online at http://www.vodafone.com/assets/files/en/IFRS_press_release.pdf