AIRBUS - 2020 Financial Statement

2. Notes to the IFRS Consolidated Financial Statements / 2.5 Operational Assets and Liabilities

27. Other Assets and Other Liabilities

Other Assets

31 December

2019

2020

(In € million)

Cost to fulfil a contract

282

351

76

86

Prepaid expenses

125

85

Others

483

522

Total non-current other assets

1,025

1,252

Value added tax claims

557

626

Cost to fulfil a contract

191

147

Prepaid expenses

Others

443

398

Total current other assets

2,216

2,423

Total

2,699

2,945

Other Liabilities

31 December

2020

2019

(In € million)

436

384

Others

436

384

Total non-current other liabilities

749

614

Tax liabilities (excluding income tax)

2,411

6,203

Others

Total current other liabilities

3,160

6,817

Total

3,596

7,201

thereof other liabilities due within one year

3,160

6,817

28. Sales Financing Transactions

Sales financing — With a view to facilitating aircraft sales for Airbus and Airbus Helicopters, the Company may enter into either on-balance sheet or off-balance sheet sales financing transactions. On-balance sheet transactions where the Company is lessor are classified as operating leases, finance leases and loans, inventories and to a minor extent, equity investments: (i) operating leases – Aircraft leased out under operating leases are included in property, plant and equipment at cost less accumulated depreciation (see “– Note 21: Property, Plant and Equipment”). Rental income from operating leases is recorded as revenue on a straight-line basis over the term of the lease;

(ii) finance leases and loans – When, pursuant to a financing transaction, substantially all the risks and rewards of ownership of the financed aircraft reside with a third party, the transaction is characterised as either a finance lease or a loan. In such instances, revenue from the sale of the aircraft are recorded upon delivery, while financial interest is recorded over time as financial income. The outstanding balance of principal is recorded on the Statement of Financial Position (on-balance sheet) in long-term financial assets, net of any accumulated impairments; (iii) inventories – Second hand aircraft acquired as part of a commercial buyback transaction, returned to Airbus after a payment default or at the end of a lease agreement are classified as inventories held for resale if there is no subsequent lease agreement in force (see “– Note 24: Inventories”).

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Airbus / Financial Statements 2020