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Vodafone – Financials
Notes to the Consolidated Financial Statements continued
4. Operating profit/(loss)
Operating profit/(loss) has been arrived at after charging/(crediting):
2008 2007 2006
£m £m £m
Net foreign exchange (gains)/losses (27) 6 –
Depreciation of property, plant and equipment (note 11):
Owned assets 3,400 2,994 3,069
Leased assets 27 17 10
Amortisation of intangible assets (note 9) 2,482 2,100 1,625
Impairment of goodwill (note 10) – 11,600 23,515
Research and development expenditure 234 222 206
Staff costs (note 35)
Operating lease rentals payable:
2,698 2,466 2,310
Plant and machinery 43 35 35
Other assets including fixed line rentals 1,117 984 933
Loss on disposal of property, plant and equipment 70 43 69
Own costs capitalised attributable to the construction or acquisition of property, plant and equipment (245) (244) (256)
The total remuneration of the Group’s auditor, Deloitte & Touche LLP, and its affiliates for services provided to the Group is analysed below:
2008 2007 2006
£m £m £m
Audit fees:
Parent company 1 1 1
Subsidiary undertakings 5 4 3
6 5 4
Fees for statutory and regulatory filings (1) 1 2 –
Audit and audit-related fees 7 7 4
Other fees:
Taxation 1 1 1
Corporate finance transactions – – 1
Other (2) 1 2 2
2 3 4
Total fees 9 10 8
Notes:
(1) Amounts for 2008 and 2007 include mainly audit fees in relation to Section 404 of the US Sarbanes-Oxley Act of 2002.
(2) Amounts for 2007 and 2006 include fees mainly relating to the preparatory work required in advance of the implementation of Section 404 of the US Sarbanes-Oxley Act of 2002 and general
accounting advice.
The total remuneration includes £nil (2007: £nil, 2006: £1 million) in respect of the Group’s discontinued operations in Japan. In addition to the above, the Group’s joint
ventures and associated undertakings paid fees totalling £2 million (2007: £2 million, 2006: £2 million) and £3 million (2007: £4 million, 2006: £4 million), respectively,
to Deloitte & Touche LLP and its affiliates during the year. Deloitte & Touche LLP and its affiliates have also received amounts totalling less than £1 million in each of
the last three years in respect of services provided to pension schemes and charitable foundations associated to the Group.
A description of the work performed by the Audit Committee in order to safeguard auditor independence when non-audit services are provided is set out in “Corporate
Governance” on page 69.
98 Vodafone Group Plc Annual Report 2008