Vodafone 2002 Annual Report Download - page 129

Notes to the Consolidated Financial Statements Vodafone Group Plc 127Annual Report & Accounts and Form 20-F
2002 2002 2001 2000
as restated as restated
Note $m(1) £m £m £m
Shareholders’ equity as reported in accordance with UK GAAP 186,067 130,573 145,007 140,594
Items increasing/(decreasing) shareholders’ equity:
Goodwill and other intangibles — net of amortisation (c) 88,015 61,765 66,234 10,397
Fixed asset investments (c) ––– 9,054
Deferral of connection income (b) (143) (100) (85) –
Capitalised interest (e) 1,072 752 365 –
Cumulative deferred income taxes (f) (66,969) (46,996) (51,259) (12,202)
Minority interests (g) (7,858) (5,514) (5,149) (1,946)
Proposed dividends (j) 728 511 464 417
Other (i) (149) (104) (55) 20
Shareholders’ equity in accordance with US GAAP 200,763 140,887 155,522 146,334
Total assets as reported in accordance with UK GAAP 232,132 162,900 172,390 153,481
Items (decreasing)/increasing total assets:
Non-consolidated subsidiaries (a) (3,021) (2,120) (2,982) –
Goodwill and other intangibles — net of amortisation (c) 88,015 61,765 66,234 10,397
Fixed asset investments (c) ––– 9,054
Deferral of connection costs (b) 3,423 2,402 1,368 –
Capitalised interest (e) 1,072 752 365 –
Deferred tax asset (f) (553) (388) (315) 389
Other (i) (181) (127) (93) 26
Total assets in accordance with US GAAP 320,887 225,184 236,967 173,347
Comprehensive income
SFAS No. 130, “Reporting Comprehensive Income”, requires that all items that are required to be recognised as components of comprehensive income be
reported in a separate financial statement. There are no material differences between total recognised gains and losses for the financial year shown in the
Statement of Total Recognised Gains and Losses presented under UK GAAP and US GAAP comprehensive income, except for the differences between UK and
US GAAP net income shown above.
Summary of differences between accounting principles generally accepted in the UK and the US
The consolidated financial statements are prepared in accordance with UK generally accepted accounting principles (“UK GAAP”), which differ in certain
material respects from those generally accepted in the US (“US GAAP”). The differences that are material to the Group relate to the following items and the
necessary adjustments are shown on pages 126 and above.
(a) Non-consolidated subsidiaries
Under UK GAAP, the results and assets of Omnitel and Airtel have been consolidated in the Group’s financial statements from 12 April 2000 and 29
December 2000, respectively. Under US GAAP, as a result of significant participating rights held by minority shareholders, the Group’s interests in Omnitel
and, up to 29 June 2001, Airtel, have been accounted for as associated undertakings under the equity method of accounting. The results of Airtel have been
consolidated under US GAAP from 29 June 2001, following the completion of the acquisition of a further 17.8% shareholding in Airtel.
Equity accounting for Omnitel and Airtel under US GAAP results in the operating loss, Group net interest payable, Group taxation payable and equity minority
interests being less than/(more than) the equivalent UK GAAP amount by £2,060m, £(9)m, £402m and £249m (2001: £2,231m, £15m, £265m and
£209m), respectively. The Group’s share of the operating loss, interest payable and taxation payable of associated undertakings would be greater/(lower)
under US GAAP than UK GAAP by £1,577m, £(7)m and £307 (2001: £2,508m, £11m and £201m), respectively. The adjustment to operating loss and the
Group’s share of the operating loss of associated undertakings includes an adjustment for the amortisation of goodwill of £3,514m (2001: £3,391m).
The Group’s investment in associated undertakings at 31 March 2002 would be £21,394m (2001: £39,272m) greater under US GAAP than UK GAAP,
comprising share of net assets of £2,630m (2001: £2,103m) and attributed goodwill of £18,764m (2001: £37,169m). There would be no adjustment in
respect of comparatives for the year ended 31 March 2000.