TABLE OF CONTENTS The balance sheet produced by a company shows a snapshot of assets and liabilities at a point in time. There might be a temptation to believe that the current liabilities were simply trade creditors (known as 'trade payables' under international accounting rules), but the reality is very different, as shown in Box 17.1.
Current liabilities
| Financial liabilities | |||
| Borrowings | 20 | (90.6) | (0.1) |
| Derivative financial instruments | 18 | (22.1) |
|
| Trade and other payables | 21 | (524.6) | (552.5) |
| Current tax liabilities | 22 | (12.8) | (8.8) |
| Provisions | 23 | (12.2) | (6.3) |
| (607.3) | (567.7) |
Let us dig a little deeper as some of the items in this section, such as provisions, are subjects upon which our understanding of the true financial position of a business might stand or fall.
21. Trade and Other Payables
| 28 January 2006 m | 29 January 2005 m | |
|---|---|---|
| Current: | ||
| Trade creditors | 251.3 | 257.1 |
| Amounts owed to joint ventures | 0.3 | 1.8 |
| Other tax and social security | 91.2 | 91.2 |
| Other creditors | 69.3 | 89.0 |
| Accruals | 112.5 | 113.4 |
| 524.6 | 552.5 | |
| Non-current: | ||
| Accruals | 61.8 | 50.8 |
| 61.8 | 50.8 |
Observations
For most businesses trade creditors will be the dominant figure in...
