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.
For the accounting policy related to contingent consideration assumed in a business combination, refer to note 4.
Trade and Other Payables can be specified as follows:
in thousands of EUR
31 December 2019
31 December 2018
Employee related payables
Other taxes and social security
Payables to related parties
Contingent and deferred consideration
At 1 January 2019 the adjustment on initial application of IFRS 16 related to reclassification of accruals for rent increases is recognized in amount of €3,751.
In 2019, the decrease in contingent consideration mainly relates to the amount of €19,540 (CHF 21,714) paid in July 2019 related 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.