Vodafone commits to IAS39
Vodafone this week committed itself to using the full version of the controversial standard IAS39, despite the Europe Commission's decision to only back a carved-up version.
Link: Burberry Group to publish IFRS results
The decision came on Tuesday during the announcement of the mobile phone operator’s interim results, which showed pre-tax profits of £5.7bn.
Vodafone also took a step further in preparing the investor and analyst community for its switch to international standards by announcing that it would provide restated financial information on 20 January 2005.
IFRS will apply for the first time in the group’s annual report for the year ended 31 March 2006. Vodafone has been gradually informing analysts and investors about the extent of the changes and impact on its reported results ahead of full adoption.
Vodafone added that IAS12 ‘income taxes’ is expected to increase the group’s effective rate of tax.
The EC decided in early September that companies would have to comply with an amended IAS39 after pressure from continental politicans and banks.
IASB chairman Sir David Tweedie had argued that the full version of the standard should be adopted by the EC.