Financial statements

NOTE 14



CURRENT PAYABLES

Details of this liability heading in the balance sheet are as follows:

BREAKDOWN OF PAYABLES (Euros) NOTES 31/12/17 31/12/16
CURRENT PAYABLES 5.459.563 3.268.428
Other non-current debt 620.945 630.454
Deposits received from suppliers 187.624 195.233
Deposits received from customers 433.321 435.221
Social Security payable 539.660 521.773
Social security contributions pending payment 539.660 521.773
Tax payable (Note 16) 4.298.958 2.116.201
Personal income tax withholdings pending payment 27.480 32.676
Non-resident income tax pending payment 179.298 191.822
Corporate income tax pending payment 3.073.124 1.645.259
Monthly VAT settlement 283.708 246.445
Tax and other payables (payments in kind) 735.349 0
TRADE AND OTHER PAYABLES 51.650.216 71.958.736
Trade payables 8,229.809 9.065.612
Operators 39.976.929 45.231.596
Sundry payables 1.459.130 122.324
Customer advances 155.527 51.525
Salary payments pending 1.828.821 17.487.679
TOTAL PAYABLE 57.109.779 75.227.163

The amount recorded under Tax and other payables includes a provision of 735,349 euros allocated at 31 December 2017 by the company in respect of an adjustment for payments in kind that were not correctly declared between 2013 and 2017. The part corresponding to payments in kind generated in 2017 is recorded as a staff expense in the year, while the amount generated in 2013, 2014, 2015 and 2016 has been taken to unrestricted reserves.

The items recorded under trade and other payables include the following:

  • Operators:
    The items recorded under this heading including trade payables to telecommunications operators, including annual discounts for Roaming In payable to mobile phone operators.
  • Salary payments pending:
    The breakdown of this heading is as follows:
(Amounts in euros) 31/12/17 31/12/16
Forecast performance bonus and accrued holiday pay 736.739 722.205
Mutual fund 729.620 676.621
Current provision for personnel expenses 362.463 376.869
Pension commitments to current employees 0 15.686.979
Others 0 25.005
Total 1.828.821 17.487.679

On 20 November 2014, the Board of Directors approved new “Regulations on the staff pension plan” with the aim of changing the current defined benefit system to a defined contributions model. At 31 December 2014 all staff had signed up to the new system. At that date the Company recognised an initial and irrevocable contribution to participants corresponding to the amount of 14,641,168 euros taken to provisions in accordance with the second actuarial study of pensions risks carried out at 31 December 2014.

In 2015, 2016 and in January 2017, the participants’ contributions to the pension fund amounted to between 1% and 3% of their eligible salaries. In line with current regulations, the Company contributed an equal amount.

The Company has outsourced the management and custody of these funds with effect from 7 February 2017. From February 2017 participants contributions have been withheld from their salaries and transferred, together with the Company’s contribution, to the two companies that manage the current employees’ Pension Plans.

The movements in the pension fund of current employees during 2017 were as follows:

Item Pension plan amount
Opening balance (contributions prior to 01/01/2017) 15.686.979
Contributions in 2017 (employee + employer) 42.835
Return obtained 31.926
Externalització (7/02/2017) (-)15.761.740
Total fund 0