Analysis of Vodafone Group Plc's Compliance with AASB Conceptual Framework

Running head: ACCOUNTING THEORY AND CONTEMPORARY ISSUES
Accounting Theory and Contemporary Issues
Name of the Student
Name of the University
Author’s Note

1ACCOUNTING THEORY AND CONTEMPORARY ISSUES
Executive Summary
The intention of this report is the analysis of the compliance of Vodafone Group Plc with various
components and standards of AASB Conceptual Framework. This report also considers the
analysis of both the fundamental and enhancing qualitative characteristics of financial
information. Another major part of this report is the analysis of certain issues in the financial
statements of the company.

2ACCOUNTING THEORY AND CONTEMPORARY ISSUES
Table of Contents
Introduction......................................................................................................................................3
Company Background.....................................................................................................................3
Financial News................................................................................................................................3
Conceptual Framework....................................................................................................................4
Fundamental Qualitative Characteristics.........................................................................................4
Enhancing Qualitative Characteristics.............................................................................................7
Financial Issues................................................................................................................................8
Revenue Recognition...................................................................................................................9
Goodwill Valuation.....................................................................................................................9
Taxation.......................................................................................................................................9
Capitalization and Asset Lives..................................................................................................10
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

3ACCOUNTING THEORY AND CONTEMPORARY ISSUES
Introduction
The main aim of this report is the analysis as well as evaluation of the 2018 Annual
Report of Vodafone Group Plc (VPG) with the aim to determine the fact that whether the
financial statements of the company have been prepared and presented as per the standards and
principles of Australian Accounting Standard Board (AASB). This report also considers the
analysis of certain issues present in the financial statements of VPG for the year 2018 along with
a brief description of the company.
Company Background
VPG is a telecommunication company that involves in providing mobile and fixed
broadband services to many countries all over the world along with Australia (vodafone.com.au
2018). In Australia, the 4G mobile network of VPG covers more than 22 million Australians. In
Australia, Vodafone Hutchinson Australia is the result of 50:50 joint ventures between VPG and
Hutchinson Telecommunications (Australia) (vodafone.com.au 2018). VPG has a customer base
of almost 6 million as of 30 June 2018. The unique consumer and enterprise initiatives of VPG
include no lock handset along with $5 Roaming plans for the mobile customers and 4G back-up
along with Instant Connect for the fixed customers (vodafone.com.au 2018).
Financial News
As per the new published in The Guardian on 30 August 2018, both Vodafone Australian
and TPG Telecom have agreed on a merger for $15 billion with the aim to develop a new
telecommunication company (theguardian.com 2018). The main aim behind this merger is to
give serious competition to both Telstra and Optus for providing lower price products to the