147 Vodafone Group Plc Annual Report 2024 147 Vodafone Group Plc Annual Report 2024 2020202#D<varCY>
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New accounting pronouncements to be adopted on or after 1 April 2024 The following amendments have been issued by the IASB and are effective for annual periods beginning on or after 1 January 2024. These amendments have been endorsed by the UK Endorsement Board. − Amendments to IAS 1 ‘Classification of Liabilities as Current or Non-current’ and ‘Non-current Liabilities with Covenants’;
− Amendments to IFRS 16 ‘Lease Liability in a Sale and Leaseback’; and − Amendments to IAS 7 and IFRS 7 ‘Supplier Finance Arrangements’.
The impact of adopting the above two amendments to IAS 1 ‘Presentation of Financial Statements’ is discussed below. No impact is expected from the adoption of the amendments to IFRS 16. The Group will provide additional disclosures in future Annual Reports in respect of supplier arrangements as a result of the option of the amendments to IAS 7 and IFRS 7. Amendments to IAS 1 ‘Presentation of Financial Statements’ The Group classifies balances relating to certain bonds as current liabilities if it is the Group’s intention to exercise options to redeem them within 12 months of the reporting date. Following the adoption of the IAS 1 amendments on 1 April 2024, bonds that are repayable in more than 12 months will be classified as Non-current liabilities regardless of any intention to redeem the bonds early. The impact of adopting the amendments on the consolidated statement of financial position at 31 March 2024 is a €931 million (31 March 2023: €2,013 million; 1 April 2022: €nil) reduction to the value of bonds presented within Current borrowings which will be re-presented as bonds within Non-current borrowings. The Group’s financial reporting will be presented in accordance with these standards from 1 April 2024 as applicable. New accounting pronouncements to be adopted on or after 1 April 2025 The following new standards and amendments have been issued by the IASB but have not yet been endorsed by the UK Endorsement Board. − IFRS 18 ‘Presentation and Disclosure in Financial Statements’; and − Amendments to IAS 21‘Lack of Exchangeability’. IFRS 18 is effective for annual periods beginning on or after 1 January 2027 whilst the amendments to IAS 21 is effective for annual periods beginning on or after 1 January 2025. The Group is assessing the impact of these new standards and amendments and the Group’s financial reporting will be presented in accordance with these standards from 1 April 2025 or subsequently as applicable.
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