Vodafone 2025 Annual Report

209

Strategic report

Governance

Financials

Other information

Vodafone Group Plc Annual Report 2025

Shares in Group undertakings

2. Fixed assets Accounting policies

2025

2024

€m

€m

Cost 1 April

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.

84,253

84,471

Additions Disposals

67

(261)

Capital contributions arising from share-based payments Contributions received in relation to share-based payments

110

115

(81)

(72)

31 March

84,349 84,253

Amounts provided for: 1 April Eliminated on disposals

783

1,044

(261)

Impairment reversal 1

(754)

31 March

29

783

Net book value 31 March

84,320 83,470

Note: 1. Reversal of 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 2025 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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