Vodafone 2024 Annual Report

Notes to the Company financial statements (continued) 232 Vodafone Group Plc Annual Report 2024 2020 3. Debtors Accounting policies 232 Vodafone Group Plc Annual Report 2024 Strategic report Governance

Financials

Other information

Amounts owed by subsidiaries are classified and recorded at amortised cost and reduced by allowances for expected credit losses. Estimated future credit losses are first recorded on initial recognition of a receivable and are based on estimated probability of default. Individual balances are written off when management deems them not to be collectible. Derivative financial instruments are measured at fair value through profit and loss. 2024 2023 €m €m Amounts falling due within one year Amounts owed by subsidiaries 1 65,272 227,347 Taxation recoverable 2 185 111 Other debtors 4 4 Derivative financial instruments 241 531 65,702 227,993 Amounts falling due after more than one year Deferred tax 5 – Other debtors 8 4 Derivative financial instruments 4,012 5,647 4,025 5,651 Notes: 1. Amounts owned by subsidiaries are unsecured, have no fixed date of repayment and are repayable on demand with sufficient liquidity in the Group to flow funds if required. The expected credit losses are considered to be immaterial. Balance was significantly reduced following the settlement of amounts owed to and from subsidiaries after completing an intercompany reorganisation exercise. 2. Primarily relates to amounts owed by Group companies due to Group relief. 4. Other Investments Accounting policies Investments are classified and measured at amortised cost using the effective interest rate method, less any impairment. 2024 2023 €m €m Collateral 766 260 5. Creditors Accounting policies Capital market and bank borrowings Interest-bearing loans and overdrafts are initially measured at fair value (which is equal to cost at inception) and are subsequently measured at amortised cost using the effective interest rate method, except where they are identified as a hedged item in a designated fair value hedge relationship. Any difference between the proceeds net of transaction costs and the amount due on settlement or redemption of borrowings is recognised over the term of the borrowing. 2024 2023 €m €m Amounts falling due within one year Bonds 1,292 4,604 Collateral liabilities 2,622 4,886 Other borrowings 26 6 Bank borrowings secured against Indian assets 1,720 1,485 Amounts owed to subsidiaries 1 62,153 214,893 Derivative financial instruments 56 155 Accruals and deferred income 3 5 67,872 226,034 Amounts falling due after more than one year Deferred tax 128 703 Bonds 37,655 37,719 Bank loans 2 2 Amounts owed to subsidiaries 2 1,796 1,793 Derivative financial instruments 1,646 1,191 41,227 41,408 Notes: 1 Amounts owed to subsidiaries are unsecured, have no fixed date of repayment are repayable on demand. Balance was significantly reduced following the settlement of amounts owed to and from subsidiaries after completing an intercompany reorganisation exercise. 2 Amounts payable with a fixed interest rate range of 3.25% and 4% and maturity ranging from 2029 to 2043.

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