DSM Integrated Annual Report 2020

21 Current liabilities

 

 

2020

 

2019

 

 

 

 

 

Trade payables

 

 

 

 

Received in advance

 

11

 

7

Trade accounts payable

 

1,200

 

1,330

Notes and cheques due

 

2

 

1

Owing to associates and joint ventures

 

5

 

7

Total Trade payables

 

1,218

 

1,345

 

 

 

 

 

Income tax payable

 

53

 

42

 

 

 

 

 

Other current liabilities

 

 

 

 

Other taxes and social security contributions

 

49

 

46

Interest

 

22

 

19

Pensions

 

2

 

-

Investment creditors

 

98

 

115

Employee-related liabilities

 

266

 

268

Payables associates and joint ventures relating to cash facility

 

2

 

5

Acquisition / divestment related liabilities

 

77

 

25

Total Other current liabilities

 

516

 

478

 

 

 

 

 

Total current liabilities

 

1,787

 

1,865

Included in trade accounts payable are amounts due to suppliers which could be part of a supply chain finance arrangement between the supplier and a third-party bank. DSM suppliers have the option to enter into such supply chain finance arrangements with third party banks, which provides them with the option of earlier payment based on terms linked to DSM’s investment grade credit rating. If a supplier chooses to participate in such an arrangement, this does not impact the classification of the trade payable for DSM as these supply chain finance arrangements are concluded between the banks and the suppliers and do not alter the payment conditions between the supplier and DSM. Therefore, these amounts remain classified as trade payables.