167 Vodafone Group Plc Annual Report 2026
Strategic report
Governance
Financials
Other information
10. Intangible assets (continued) For licences and spectrum fees and other intangible assets, amortisation is included within the cost of sales line within the consolidated income statement. Included in the net book value of computer software and licenses and spectrum fees are assets in the course of construction, which are not amortised, with a cost of €824 million (2025: €1,035 million) and €18 million (2025: €151 million) respectively. The net book value and expiry dates of the most significant licences are as follows:
11. Property, plant and equipment The Group makes significant investments in network equipment and infrastructure – the base stations and technology required to operate our networks – that form the majority of our tangible assets. All assets are depreciated over their useful economic lives. For further details on the estimation of useful economic lives, see ‘Critical accounting judgements and key sources of estimation uncertainty’ in note 1 ‘Basis of preparation ‘to the consolidated financial statements. Accounting policies Land and buildings held for use are stated in the consolidated statement of financial position at their cost, less any accumulated depreciation and any accumulated impairment losses. Amounts for equipment, fixtures and fittings, which includes network infrastructure assets are stated at cost less accumulated depreciation and any accumulated impairment losses. Assets in the course of construction are carried at cost, less any recognised impairment losses. Depreciation of these assets commences when the assets are ready for their intended use. The cost of property, plant and equipment includes directly attributable incremental costs incurred in their acquisition and installation. Depreciation is charged so as to write off the cost of assets, other than land, using the straight-line method, over their estimated useful lives, as follows:
2026 €m 2,290 1,622 932 824
2025 €m 2,392 965 771
Expiry dates 2030 - 2040 2033 - 2041 2027 - 2042
Germany Vodacom T ü rkiye UK
2042 366 The remaining amortisation period for each of the licences in the table above corresponds to the expiry date of the respective licence. A summary of the Group’s most significant spectrum licences can be found on page 244.
Land and buildings Freehold buildings Leasehold premises
25 - 50 years The term of the lease
Equipment, fixtures and fittings Network infrastructure and other
1 - 35 years
Depreciation is not provided on freehold land. Right-of-use assets arising from the Group’s lease arrangements are depreciated over the shorter of their reasonably certain lease term, as determined under the Group’s leases policy (see note 20 ‘Leases’ and ‘Critical accounting judgements and key sources of estimation uncertainty’ in note 1 ‘Basis of preparation’ for details) and their expected useful life. The gain or loss arising on the disposal, retirement or granting of a finance lease on an item of property, plant and equipment is determined as the difference between any proceeds from sale or receivables arising on a lease and the carrying amount of the asset and is recognised in the consolidated income statement.
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