BusinessCompany News‘No funny accounting methods’ at Vodafone

'No funny accounting methods' at Vodafone

Vodafone has stood by its use of accounting techniques to calculte revenue saying there are 'no funny accounting methods' at the telecommunications company.

The world’s third biggest mobile phone operator said yesterday it had booked revenues from wireless internet services as turnover even when the income was part of content-sharing deals in which a portion of the turnover was paid to third parties.

The company defended its accounting methods saying it looked at every deal on a case-by-case basis and it only included content-sharing deals as turnover when they came from mobile phone users.

It added payments made to third parties were accounted for as cost of sale and therefore did not affect gross profits and earnings before interests, tax, depreciation, and amortisation (EBITDA).

A spokesman said: ‘If we are responsible for the transaction we declare it like the other retailers.

‘The suggestion that we have inflated our figures is therefore totally wrong. Vodafone’s independent observers and auditors have gone through our accounts with a fine tooth comb – they say we use conservative accounting methods.’

Shareholders will have a chance to challenge the company’s accounts at the agm today.

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