Vodafone 2014 Annual Report Download - page 153

Fair value of nancial instruments
The table below sets out the valuation basis1 of nancial instruments held at fair value by the Group at 31 March 2014.
Level 12 Level 23 Total
2014
Restated
2013 2014
Restated
2013 2014
Restated
2013
£m £m £m £m £m £m
Financial assets:
Fair value through the income statement
(heldfor trading) – – 3,792 4,836 3,792 4,836
Derivative nancial instruments:
Interest rate swaps – –1,871 2,625 1,871 2,625
Cross currency interest rate swaps – –504 319 504 319
Foreign exchange contracts – –68 88 68 88
Interest rate futures – – 13 52 13 52
– – 6,248 7,920 6,248 7,920
Financial investments available-for-sale:
Listed equity securities46 3 – – 6 3
Unlisted equity securities4– – 154 498 154 498
6 3 154 498 160 501
6 3 6,402 8,418 6,408 8,421
Financial liabilities:
Derivative nancial instruments:
Interest rate swaps – –635 1,060 635 1,057
Cross currency interest rate swaps – – 217 –217 –
Foreign exchange contracts – –29 44 29 44
– – 881 1,104 881 1,101
Notes:
1 There were no changes made during the year to valuation methods or the processes to determine classication and no transfers were made between the levels in the fair value hierarchy.
2 Level 1 classication comprises nancial instruments where fair value is determined by unadjusted quoted prices in active markets for identical assets or liabilities.
3 Level 2 classication comprises where fair value is determined from inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. Fair values for unlisted equity securities are derived
from observable quoted market prices for similar items. Derivative nancial instrument fair values are present values determined from future cash ows discounted at rates derived from market sourced data.
4 Details of listed and unlisted equity securities are included in note 13 “Other Investments”.
Offsetting of nancial assets and nancial liabilities
Financial assets and liabilities included in the table above do not meet the required criteria to offset in the balance sheet but derivative nancial
assets at 31 March of up to £678 million (2013: £857 million) would be settled net in certain circumstances under ISDA (International Swaps and
Derivatives Association) agreements where each party has the option to settle amounts on a net basis in the event of default from the other.
Under the Group’s collateral support agreements described above, under “credit risk” collateral has been posted of £130 million (2013: £117 million)
and received of £1,185 million (2013: £1,151 million). Collateral may be offset and net settled against derivative nancial instruments in the event
of default by either party. The aforementioned collateral balances are recorded in “other short-term investments” or “short-term debt” respectively.
24. Directors and key management compensation
This note details the total amounts earned by the Company’s directors and members of the Executive Committee.
Directors
Aggregate emoluments of the directors of the Company were as follows:
2014
Restated
2013
Restated
2012
£m £m £m
Salaries and fees 4 5 5
Incentive schemes12 2 3
Other benets21 1 1
7 8 9
Notes:
1 Amounts payable under incentive schemes have been restated to exclude £5 million and £1 million of cash in lieu of long-term incentive scheme dividends for the years ended 31 March 2013 and 31 March 2012, respectively.
2 Includes the value of the cash allowance taken by some individuals in lieu of pension contributions.
The aggregate gross pre-tax gain made on the exercise of share options in the year ended 31 March 2014 by directors who served during the year
was £4 million (2013: £2 million; 2012: £nil).
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