Vodafone 2014 Annual Report Download - page 169

31. Related party transactions
The Group has a number of related parties including joint ventures and associates (see note 12 “Investments
in associates and joint ventures” to the consolidated nancial statements), pension schemes (see note 26
“Post employment benets” to the consolidated nancial statements) and directors and Executive Committee
members (see note 24 “Directors and key management compensation” to the consolidated nancial statements).
Transactions with joint ventures and associates
Related party transactions with the Group’s joint ventures and associates primarily comprise fees for the use of products and services including
network airtime and access charges, and cash pooling arrangements.
No related party transactions have been entered into during the year which might reasonably affect any decisions made by the users of these
consolidated nancial statements except as disclosed below.
2014
Restated
2013
Restated
2012
£m £m £m
Sales of goods and services to associates 231 238 194
Purchase of goods and services from associates 109 97 103
Sales of goods and services to joint ventures 12 27 43
Purchase of goods and services from joint ventures 570 568 381
Net interest expense payable to joint ventures1 75 33 20
Trade balances owed:
by associates 3 21 15
to associates 3 20 17
by joint ventures 82 260 220
to joint ventures 170 48 16
Other balances owed by joint ventures1 57 1,065 1,213
Other balances owed to joint ventures1 63 – –
Note:
1 Amounts arise primarily through Vodafone Italy, Vodafone Hutchison Australia, Indus Towers and Cornerstone. Interest is paid in line with market rates.
Dividends received from associates and joint ventures are disclosed in the consolidated statement of cash ows.
Transactions with directors other than compensation
During the three years ended 31 March 2014, and as of 19 May 2014, neither any director nor any other executive ofcer, nor any associate of any
director or any other executive ofcer, was indebted to the Company.
During the three years ended 31 March 2014, and as of 19 May 2014, the Company has not been a party to any other material transaction,
or proposed transactions, in which any member of the key management personnel (including directors, any other executive ofcer, senior manager,
any spouse or relative of any of the foregoing or any relative of such spouse) had or was to have a direct or indirect material interest.
32. Principal subsidiaries
Our subsidiaries are located around the world and each contributes to the prots, assets and cash ow of the
Group. We have a large number of subsidiaries and so, for practical reasons, only the principal subsidiaries
at 31 March 2014 are detailed below.
Accounting policies
A subsidiary is an entity controlled by the Company. Control is achieved where the Company has existing rights that give it the current ability
to direct the activities that affect the Company’s returns and exposure or rights to variable returns from the entity. The results of subsidiaries acquired
or disposed of during the year are included in the consolidated income statement from the effective date of acquisition or up to the effective date
of disposal, as appropriate. Where necessary, adjustments are made to the nancial statements of subsidiaries to bring their accounting policies into
line with those used by the Group.
All intra-group transactions, balances, income and expenses are eliminated on consolidation.
Non-controlling interests in the net assets of consolidated subsidiaries are identied separately from the Group’s equity therein. Non-controlling
interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share
of changes in equity since the date of the combination. Total comprehensive income is attributed to non-controlling interests even if this results
in the non-controlling interests having a decit balance.
Annual Report 2014 167Overview Strategy review Performance Governance Financials Additional information