Ferrovial S.A. – Annual report – 31 December 2021
Industry: construction
4.3. SHORT-TERM TRADE AND OTHER PAYABLES
The detail of “short-term trade and other receivables” at 31 December 2021 and 2020 is as follows:
a) Trade payables
The detail of the trade payables at 31 December 2021 and 2020 is as follows:
The line item “trade payables” increased by EUR 90 million compared to the balance recognized at 31 December 2020. Excluding the foreign exchange effect and scope changes, trade payables increased by EUR 59 million, primarily in the Construction Division. As regards trade payables subject to reverse factoring, that is balances pending payment to suppliers under reverse factoring arrangements (Note 1.3.3.3 on accounting policies) these increased by EUR 9 million compared to the balance at 31 December 2020.
Group management considers that the carrying amount of trade receivables approximates their fair value.
1.3.3.3. Other line items in the balance sheet and income statement (extract)
Trade payables
“Trade payables” include the balances payable to suppliers under reverse factoring arrangements with banks.
These balances are classified as trade payables and the related payments as cash flows from operating activities, since the payments are made to the banks under the same conditions as those agreed with the supplier, the company bound by the obligation to make payment does not agree an extension with the banks beyond the due dates agreed with the supplier, and there are no special guarantees to secure the payments to be made.
Accounts examples 