Accounting Policy
Trade payables are obligations to pay for goods or services that have been acquired from suppliers in the ordinary course of business. Trade payables are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.
Trade payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method.
Trade and Other Payables can be specified as follows:
in thousands of EUR | Notes | 31 December 2020 | 31 December 2019 |
|---|---|---|---|
Trade payables | 191,306 | 207,979 | |
Accrued expenses | 124,828 | 104,588 | |
Employee related payables | 115,371 | 116,087 | |
Other taxes and social security | 88,591 | 74,765 | |
Payables to related parties | 7,374 | 9,242 | |
Contingent consideration | 1,700 | 1,943 | |
Other payables | 50,996 | 55,024 | |
580,166 | 569,628 |
In 2020, increase in Other taxes and social security mainly relate to deferrals of payroll tax liability in Sweden and Denmark in line with the local government tax ruling, which is being partially settled every month as from August 2020.
In 2019, a contingent consideration of €19,540 (CHF 21,714) was paid in July 2019 in relation to the increase of the Group's shareholding in Visilab S.A. from 70% to 79%.
The carrying value of the items in the above table is assumed to approximate the fair value due to their short-term nature.