Mobile phone giant Vodafone has
reported a multibillion-pound write-down of its assets.
The group published the news in its interim report released today, which
showed that a £4.8bn pre-tax profit had been decimated by an £8.1bn impairment
charge due to a number of factors including the asset value reduction.
Vodafone said: ‘The carrying value of goodwill of the Group’s operations in
Germany and Italy, with each representing a reportable segment, has been
impaired following a test for impairment triggered by an increase in long term
interest rates and
increased price competition in the German market along with continued regulatory
Despite the downward revision and increased pitch competition in Germany and
Italy, overall revenues increased by 4% to £15.6bn, compared with the same
period last year.
Vodafone would not rule out further write downs in the future: ‘The carrying
values of the Group’s operations in Germany and Italy equal their respective
ammounts at 30 September 2006 and consequently, any adverse change in a key
assumption may cause a further impairment loss to be recognised,’ it warned.
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements