The Group’s policy is to agree terms of transactions, including payment terms, with suppliers and, provided that suppliers perform in accordance with the agreed terms, it is the Group’s normal practice that payment is made accordingly. Details of the average credit period taken on trade payables are provided in note 20 to the financial statements.

The average credit period taken on trade payables, calculated by reference to the amounts owed at the period end as a proportion of the amounts invoiced by suppliers in the period, adjusted to take account of the timing of acquisitions, was 21 days (2008: 48 days). The Directors consider that the carrying amount of trade and other payables approximates to their fair value.

Discussion points

1 What do we learn about the group’s policy of paying suppliers?
2 How significant is the amount of trade payables in the current liabilities?

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Note 20 Trade and other payables Current Trade payables Other taxes and social security costs Other payables Accruals and deferred income Forward currency contracts (see note 22) Non-current Other payables 2009 m 77 18 13 159 267 2008 m 520 117 111 335 4 1,087 1