Vodafone 2025 Annual Report

Vodafone Group Plc Annual Report 2025 137

Strategic report

Governance

Financials

Other information

New accounting pronouncements to be adopted on or after 1 April 2026 The following new standards and amendments have been issued by the IASB but have not yet been endorsed by the UK Endorsement Board (‘UKEB’) except where noted: − Amendments to IFRS 9 and IFRS 7 ‘Amendments to the Classification and Measurement of Financial Instruments’ , which have been endorsed by the UKEB; − Amendments to IFRS 9 and IFRS 7 ‘Contracts Referencing Nature - dependent Electricity’; − Annual Improvements to IFRS Accounting Standards (Volume 11), which has been endorsed by the UKEB; The amendments to IFRS 9, IFRS 7 and Annual Improvements are effective for annual periods beginning on or after 1 January 2026 whilst IFRS 18 and IFRS 19 are effective for annual periods beginning on or after 1 January 2027. The amendments to IFRS 19 and Annual improvements are not expected to have a material impact on the Group’s financial reporting on adoption. The Group is assessing the impact of IFRS 18, IFRS 7 and IFRS 9 and the Group’s financial reporting will be present ed in accordance with these standards from 1 April 2026 or subsequently as applicable. − IFRS 18 ‘Presentation and Disclosure in Financial Statements’; and − IFRS 19 ‘Subsidiaries without Public Accountability: Disclosures ‘.

1. Basis of preparation (continued) New accounting pronouncements adopted on 1 April 2024

The Group adopted the following new accounting policies on 1 April 2024 to comply with amendments to IFRS: − Amendments to IAS 1 ‘Classification of Liabilities as Current or Non - current’ and ‘Non -current Liabilities with Covenants’;

− Amendment 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 amendments to IAS 1 ‘Presentation of Financial Statements’ is discussed below. No material impact has resulted from the adoption of the amendments to IFRS 16. The Group has provided additional disclosures in note 15 ‘Trade and other payables’ in respect of supplier arrangements as a result of the amendments to IAS 7 and IFRS 7. Amendments to IAS 1 ‘Presentation of Financial Statements’ The Group has previously classified balances relating to certain bonds as current liabilities if it was 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 are 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 was a reduction to the value of bonds presented within current borrowings and a matching increase in the value of bonds presented in non-current borrowings; the value of the adjustments as at 31 March 2024 was €931 million and at 31 March 2023 was €2,013 million. The Group’s financial reporting is presented in accordance with these standards from 1 April 2024. New accounting pronouncements to be adopted on or after 1 April 2025 The following amendment has been issued by the IASB and is effective for annual periods beginning on or after 1 January 2025. This amendment has been endorsed by the UK Endorsement Board. − Amendments to IAS 21 ‘Lack of Exchangeability’. The amendment is not currently expected to have a material impact on the Group’s financial reporting on adoption, but the impact is dependent on economic factors outside of the Group’s control.