Part 2: Accounting and financial reporting issues
Our review process
We considered the following accounting and financial reporting issues, judgements and estimates in the context of the financial statements and management override of controls and fraud, discussed them with our external auditor, and found the response to each appropriate and acceptable.
Significant issue | Progress and actions taken during the year | Cross-reference |
|---|---|---|
Going concern and long-term viability statement | We advised the Board on the form and basis of conclusion for the long-term viability statement and going concern assessment, reviewing these in depth alongside the Group’s strategy and business model. Our review covered:
Considering potential mitigating actions, we were satisfied with the conclusion and disclosure of the Group’s long-term viability and going concern. | |
Review of tax/legal/regulatory matters | We reviewed the key developments in material tax, legal and regulatory matters during the period including management’s assessment of tax, legal and regulatory matters and the classification of exposures as probable, possible or remote. We were satisfied with management’s conclusions, the related disclosures in the financial statements and the identification of relevant matters as a key source of estimation uncertainty where appropriate. | |
Goodwill impairment | We received and discussed a management paper on impairment and challenged the appropriateness of the key assumptions and judgements adopted for the annual impairment testing exercise in December 2025. We considered the level of operating cash flow forecasts and resulting headroom and reviewed the sensitivities performed by management on key assumptions such as the discount rate, growth rates and the headroom if a five-year plan were adopted with appropriate long-term growth rates. For more on Airtel Africa’s goodwill impairment assessment, see note 16 of the financial statements. | |
Lack of exchangeability | The committee reviewed and discussed management’s assessment and judgement applied in relation to the adoption of the amendments to IAS 21, The Effects of Changes in Foreign Exchange Rates, including the evaluation of exchangeability in the Group’s operating markets. The committee challenged the assumptions, considered the economic and regulatory factors underpinning management’s conclusion, and was satisfied that the judgements made, and the related disclosures, were appropriate based on the facts and circumstances at the reporting date. The committee also noted management’s commitment to ongoing monitoring and reassessment as conditions evolve. |