70.2K

Verified Solution

Link Copied!

How to determine the total debt for calculating net debt when there is no clear name indicated as short term debt/long term debt in the balance sheet?

Balance Sheet information

- Other financial liabilities consist of derivative contracts used to hedge operating risks (e.g. purchase of commodities).

- Other intangible assets comprise mainly computer software and brands.

- "Trade and other payables" (current and non-current) comprises the following four items:

a. Trade payables

b. Social security costs and other taxes

c. Accruals and deferred income d.Other payables

- Provisions consist of the following items:

a. Property provisions established in relation to store closures (e.g. for rent payable)

b. Estimated cost of insurance claims incurred but not yet settled

c. Restructuring costs (e.g. the plan to transform Argos into a digital retail leader)

- "Other financial assets" comprise the following items:

a. Securities listed on active markets for an amount of 9.8m at 1 March 2014 and of 24.4m at 2 March 2013;

b. Forward foreign exchange contracts, for the remaining amount.

- "Other financial liabilities" consist of forward foreign exchange contracts - Post-employment benefits liabilities relate to pension plans provided by Home Retail Group to its employees.

(52.6) LIABILITIES Non-current liabilities Trade and other payables Provisions Deferred tax liabilities Post-employment benefits (47.4) (190.0) (12.9) (76.6) (326.9) (179.5) (26.6) (85.1) (343.8) Total non-current liabilities 23 Current liabilities Trade and other payables Provisions Other financial liabilities Current tax liabilities 24 (1,115.3) (46.1) (36.5) (5.8) (1,203.7) (1,530.6) (1,116.1) (38.3) (2.8) (11.7) (1,168.9) (1,512.7) Total current liabilities Total liabilities

Answer & Explanation Solved by verified expert

See Answer