Due to new accounting rules implemented by the Securities and Exchange Commission, Vodafone Group plc said it will likely report a reduction in the carrying value of its 45-percent equity stake in Verizon Wireless. Vodafone noted the new rules require it to distinguish between mobile licenses and goodwill.
“Any resulting reduction in the carrying value of Vodafone’s investment in Verizon Wireless under [U.S. general accepted accounting practices] would not be as a result of a change in Vodafone’s view of the financial prospects of Verizon Wireless,” Vodafone said.
Both Vodafone and Verizon Communications Inc., which controls the remaining 55 percent of Verizon Wireless, have recently commented that they would each like to own a larger stake in the wireless operator.
