Notes 1-5
- 1. Basis of preparation
- 2. Significant accounting policies
- 3. Segment analysis
- 4. Operating profit/(loss)
- 5. Investment income and financing costs
4. Operating profit/(loss)
Operating profit/(loss) has been arrived at after charging/(crediting):
2009 £m |
2008 £m |
2007 £m |
|
---|---|---|---|
Net foreign exchange losses/(gains) | 30 | (27) | 6 |
Depreciation of property, plant and equipment (note 11): | |||
Owned assets | 4,025 | 3,400 | 2,994 |
Leased assets | 36 | 27 | 17 |
Amortisation of intangible assets (note 9) | 2,753 | 2,482 | 2,100 |
Impairment of goodwill (note 10) | 5,650 | – | 11,600 |
Impairment of licence and spectrum (note 10) | 250 | – | – |
Research and development expenditure | 280 | 234 | 222 |
Staff costs (note 36) | 3,227 | 2,698 | 2,466 |
Operating lease rentals payable: | |||
Plant and machinery | 68 | 43 | 35 |
Other assets including fixed line rentals | 1,331 | 1,117 | 984 |
Loss on disposal of property, plant and equipment | 10 | 70 | 43 |
Own costs capitalised attributable to the construction or acquisition of property, plant and equipment | (273) | (245) | (244) |
The total remuneration of the Group’s auditor, Deloitte LLP, and its affiliates for services provided to the Group is analysed below:
2009 £m |
2008 £m |
2007 £m |
|
---|---|---|---|
Audit fees: | |||
Parent company | 1 | 1 | 1 |
Subsidiary undertakings | 5 | 5 | 4 |
6 | 6 | 5 | |
Fees for statutory and regulatory filings(1) | 2 | 1 | 2 |
Audit and audit-related fees | 8 | 7 | 7 |
Other fees: | |||
Taxation | 1 | 1 | 1 |
Other(2) | – | 1 | 2 |
1 | 2 | 3 | |
Total fees | 9 | 9 | 10 |
Notes:
- (1)
- Amounts for 2009, 2008 and 2007 include mainly audit fees in relation to Section 404 of the US Sarbanes-Oxley Act of 2002.
- (2)
- The amount for 2007 includes 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.
In addition to the above, the Group’s joint ventures and associated undertakings paid fees totalling £3 million (2008: £2 million, 2007: £2 million) and £6 million (2008: £3 million, 2007: £4 million), respectively, to Deloitte LLP and its affiliates during the year. Deloitte 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”.