The breakdown of this item in the consolidated balance sheet at 31 December is as follows (thousands of euros):
The heading “Commercial Creditors and Other Accounts Payable” covers the accounts payable derived from commercial activity typical of the Group. This heading includes 37,460 thousand euros (27,989 thousand euros at 31 December 2020) coming from creditors for confirming transactions.
The “Advance payments from customers” item mainly includes customer deposits arising from the Group’s hotel businesses.
INFORMATION ON DEFERRED PAYMENTS TO SUPPLIERS. THIRD ADDITIONAL PROVISION. “DUTY TO
REPORT” OF ACT 11/2013 OF 26 JULY
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 consolidated balance sheet.
The average period for payment to suppliers has been calculated using the weighted average of the two ratios explained below:
– Ratio of paid transactions: average payment period of transactions paid in each year 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
The maximum period for payment to suppliers of the Company has been higher than the legal period stablished of 60 days due to the impact of COVID-19 pandemic on hotel demand. This situation is remediable as long as several measures are taken focused on temporary resizing of existing resources, such as renegotiation of rent contracts and other different actions focused on minimizing COVID-19 impacts, which jointly with the progressive recovery of hotel activity will contribute to meet the stablished legal ratio.