Vodafone 2005 Annual Report Download - page 131

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Financials |129
Summary aggregated financial information of 50% or less owned entities accounted for under the equity method
Summary aggregated financial information of 50% or less owned entities accounted for under the equity method, extracted on a 100% basis from accounts prepared under
UK GAAP as of 31 March and for the years then ended, is set out below.
2005 2004 2003
£m £m £m
Assets:
Current assets 6,774 6,048 7,033
Non-current assets 21,371 19,619 21,004
28,145 25,667 28,037
Liabilities and equity shareholders’ funds:
Current liabilities 12,960 11,818 12,978
Long-term liabilities 5,980 5,076 5,310
Minority interests 952 974 963
Total equity shareholders’ funds 8,253 7,799 8,786
28,145 25,667 28,037
Turnover 29,243 23,418 23,148
Operating profit 7,965 6,759 5,710
Summary financial information for Verizon Wireless as of 31 March and for the years then ended is set out below. The financial information is extracted on a 100% basis
from accounts prepared under UK GAAP.
Verizon Wireless
2005 2004 2003
£m £m £m
Assets:
Current assets 2,714 2,142 2,257
Non-current assets 14,500 13,033 13,645
17,214 15,175 15,902
Liabilities and equity shareholders’ funds:
Current liabilities 7,030 6,610 7,809
Long-term liabilities 4,814 3,910 3,605
Minority interests 854 855 962
Total equity shareholders’ funds 4,516 3,800 3,526
17,214 15,175 15,902
Turnover 15,634 13,886 12,902
Operating profit 3,598 3,035 2,795
(b) Connection revenue and costs
The Group’s UK GAAP accounting policy on revenue recognition was amended during the year ended 31 March 2004 in relation to the deferral of certain equipment,
connection, upgrade and tariff migration fees following the issuance of Application Note G to FRS 5 “Reporting the Substance of Transactions”. Following the prospective
adoption of EITF 00-21, “Accounting for Revenue Arrangements with Multiple Deliverables”on 1 October 2003 under US GAAP the Group’s UK and US GAAP accounting
policies have been substantially aligned.
For transactions prior to 1 October 2003, connection revenue under US GAAP are recognised over the period that a customer is expected to remain connected to a network.
Connection costs directly attributable to the income deferred are recognised over the same period. Where connection costs exceed connection revenue, the excess costs
were charged in the profit and loss account immediately upon connection. The balances of deferred revenue and deferred charges as of 30 September 2003 will continue to
be recognised over the period that a customer is expected to remain connected to a network.