Below is the information required by Additional Provision Three of Law 15/2010 of 5 July and modified according to the Resolution of 29 January 2016, of the Institute of Accounting and Auditing, on the information to be incorporated in the record of annual financial statements relating to the average period for payment to suppliers in commercial transactions of Spanish companies.
The above information on payments to suppliers of Spanish companies refer to those which by their nature are trade creditors due to debts with suppliers of goods and services. The table includes, therefore, the “Commercial Creditors and Other Accounts Payable” item in current liabilities of the attached consolidated balance sheet at 31 December 2019 and 2018.
The average period for payment to suppliers has been calculated, as stated in the Resolution of 29 January 2016, of the Institute of Accounting and Auditing, using the weighted average of the two ratios explained below:
– Ratio of paid transactions: average payment period of transactions paid in 2019 weighted by the amount of each transaction.
– Ratio of transactions pending payment: average period between the invoice date and the end of the year weighted by the amount of each transaction.