Financial Statements 2021

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

26. Other Assets and Other Liabilities

Other Assets

31 December

2021

2020

(In € million)

Cost to fulfil a contract

301

282

116

76

Prepaid expenses

378

125

Others

Total non-current other assets

795

483

Value added tax claims

1,183

1,025

499

557

Cost to fulfil a contract

392

191

Prepaid expenses

319

443

Others

2,393

2,216

Total current other assets

Total

3,188

2,699

Non-current other assets include €305 million of payments to be made to Airbus by suppliers after aircraft delivery and are recorded as a reduction of cost of goods sold at the time of aircraft delivery. These future payments are discounted to reflect specific contractual terms and repayment profile.

Other Liabilities

31 December

2021

2020

(In € million)

583

436

Others

Total non-current other liabilities

583

436

Tax liabilities (excluding income tax)

771

749

2

2,761

2,411

Others

3,532

3,160

Total current other liabilities

Total

4,115

3,596

thereof other liabilities due within one year

3,532

3,160

27. 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 20: 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 23: Inventories”).

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Airbus / Financial Statements 2021