222 Vodafone Group Plc Annual Report 2026
Strategic report
Governance
Financials
Other information
Shares in Group undertakings
2. Fixed assets Accounting policies
2026 €m
2025 €m
Cost 1 April Additions
Shares in Group undertakings are stated at cost less any provision for impairment and capital related to share-based payments. Contributions in respect of share-based payments are recognised in line with the policy set out in note 7 ‘Share-based payments’. The Company assesses investments for impairment whenever events or changes in circumstances indicate that the carrying value of an investment may not be recoverable. If any such indication of impairment exists, the Company makes an estimate of the recoverable amount. If the recoverable amount is less than the carrying value, the investment is considered to be impaired and is written down to its recoverable amount. An impairment loss is recognised immediately in the income statement. Where there has been a change in the estimates used to determine recoverable amount and an impairment loss subsequently reverses, the carrying amount of the investment is increased to the revised estimate of its recoverable amount, not to exceed the carrying amount that would have been determined had no impairment loss been recognised for the investment in prior years and an impairment loss reversal is recognised immediately in the income statement. The Company’s principal subsidiary is Vodafone European Investments (‘VEI’). For the purposes of VEI’s impairment assessment, the Group’s operations are considered to be a single cash generating unit (‘CGU’) held within VEI. In the impairment assessment of the investment in VEI, the Company applies the same methodology and assumptions used by the Group for goodwill impairment testing purposes, as set out in note 4 ‘Impairment losses’ to the consolidated financial statements. The pooling of the Company’s interests within a single CGU significantly reduces the risk that movements in individual assumptions used during the goodwill impairment testing will impact the result of the investment impairment assessment. Whilst the underlying assumptions used are a source of estimation uncertainty, they do not give rise to a significant risk of adjustment within the next financial year. For remaining investments, the recoverable amount is determined based on the net asset position of the investees.
84,349 84,253
–
67 110
Capital contributions arising from share-based payments Contributions received in relation to share-based payments
114
(81)
(81)
31 March
84,382 84,349
Amounts provided for: 1 April Impairment charge/(reversal) 1,2
29 53 82
783 (754) 29
31 March
Net book value 31 March
84,300 84,320
Notes: 1. The current year impairment resulted from the write down of the carrying value of investments to their recoverable amount. 2. The prior year included the reversal of an impairment previously recognised for Vodafone UK Investments Limited to a carrying value of €4,768 million, due to an increase in net assets. At 31 March 2026 the Company had the following principal subsidiary: Country of Percentage Name Principal activity incorporation shareholding Vodafone European Investments Holding company England 100 Details of direct and indirect related undertakings are set out in note 31 ‘Related undertakings’ to the consolidated financial statements.
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