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16. Inventory<br />
2008 2007<br />
£m £m<br />
Goods held for resale 417 288<br />
Inventory is <strong>report</strong>ed net of allowances for obsolescence, an analysis of which is as follows:<br />
2008 2007 2006<br />
£m £m £m<br />
1 April 100 97 121<br />
Transfer in respect of discontinued operations – – (40)<br />
Exchange movements 11 (2) 1<br />
Amounts charged to <strong>the</strong> income statement 7 5 15<br />
31 March 118 100 97<br />
Cost of sales includes amounts related to inventory amounting to £4,320 million (2007: £3,797 million; 2006: £3,662 million).<br />
17. Trade and o<strong>the</strong>r receivables<br />
2008 2007<br />
£m £m<br />
Included within non-current assets:<br />
Trade receivables 49 42<br />
O<strong>the</strong>r receivables 66 45<br />
Prepayments and accrued income 121 183<br />
Derivative financial instruments 831 224<br />
1,067 494<br />
Included within current assets:<br />
Trade receivables 3,549 2,844<br />
Amounts owed by associated undertakings 21 14<br />
O<strong>the</strong>r receivables 494 226<br />
Prepayments and accrued income 2,426 1,859<br />
Derivative financial instruments 61 80<br />
6,551 5,023<br />
The Group’s trade receivables are stated after allowances for bad and doubtful debts based on management’s assessment of creditworthiness, an analysis of which is<br />
as follows:<br />
2008 2007 2006<br />
£m £m £m<br />
1 April 473 431 474<br />
Transfer in respect of discontinued operations – – (41)<br />
Exchange movements 73 (16) 4<br />
Amounts charged to administrative expenses 293 201 168<br />
Trade receivables written off (175) (143) (174)<br />
31 March 664 473 431<br />
The carrying amounts of trade and o<strong>the</strong>r receivables approximate <strong>the</strong>ir fair value. Trade and o<strong>the</strong>r receivables are predominantly non-interest bearing.<br />
2008 2007<br />
£m £m<br />
Included within “Derivative financial instruments”:<br />
Fair value through <strong>the</strong> income statement (held for trading):<br />
Interest rate swaps 70 60<br />
Foreign exchange swaps 42 78<br />
Fair value hedges:<br />
112 138<br />
Interest rate swaps 780 166<br />
892 304<br />
The fair values of <strong>the</strong>se financial instruments are calculated by discounting <strong>the</strong> future cash flows to net present values using appropriate market interest and foreign<br />
currency rates prevailing at 31 March.<br />
<strong>Vodafone</strong> Group Plc Annual Report 2008 111
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