223 Vodafone Group Plc Annual Report 2026
Strategic report
Governance
Financials
Other information
3. Debtors Accounting policies
5. Creditors Accounting policies Capital market and bank borrowings
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. 2026 2025 €m €m Amounts falling due within one year Amounts owed by subsidiaries 1 63,295 73,608 Taxation recoverable 2 134 156 Other debtors 16 100 Derivative and other financial instruments 108 148 63,553 74,012 Amounts falling due after more than one year Other debtors 3 5 Derivative and other financial instruments 2,880 4,064 2,883 4,069 Notes: 1. Amounts owed 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. 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. 2026 2025 €m €m Collateral 1,168 1,010
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. 2026 2025 €m €m Amounts falling due within one year Bonds 1,543 1,529 Bank loans – 3 Other borrowings 6 25 Collateral liabilities 1,599 2,283 Accruals and deferred income 1 92 132 Amounts owed to subsidiaries 2,4 73,157 78,828 Contract liabilities 27 25 Derivative and other financial instruments 106 123 76,530 82,948 Amounts falling due after more than one year Bonds 26,733 32,741 Bank loans 600 600 Deferred tax 161 93 Amounts owed to subsidiaries 3,4 6,756 2,131 Contract liabilities 241 268 Derivative and other financial instruments 1,800 1,908 36,291 37,741 Notes: 1. Includes €92 million (2025: €132 million) payable in relation to the irrevocable and non-discretionary share buyback programme announced in February 2026. 2. Amounts owed to subsidiaries are unsecured, have no fixed date of repayment and are repayable on demand. 3. Amounts payable with a fixed interest rate range of 2.75% and 4.125% (2025: 3.25% and 4.0%) and maturity ranging from 2029 to 2043 (2025: 2029 to 2043). 4. Includes €22 million due within one year (2025: €nil) and €858 million (2025: €nil) due after more than one year in relation to contract liabilities with a subsidiary. Included in total amounts falling due after more than one year are bonds of €26,733 million (2025: €32,741 million), of which €23,837 million (2025 : €28,824 million) are due in more than five years from 31 March 2026 and are payable otherwise than by instalments. Interest payable on these bonds ranges from 0.5% to 8.0% (2025: 0.5% to 8.0%).
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