Chapters
Annual Report 2019

29. Trade and Other Payables

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.

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

Notes

31 December 2019

31 December 2018

Trade payables

207,979

181,234

Accrued expenses

104,588

97,351

Employee related payables

116,087

100,886

Other taxes and social security

74,765

65,687

Payables to related parties

33.1

9,242

8,526

Contingent and deferred consideration

1,943

19,676

Other payables

55,024

69,618

569,628

542,978

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.