Annual Report 2010 in PDF - BBA Aviation

13. Trade and other payables
Amounts due within one year
Trade payables
Other taxation and social security
Other payables
Accruals and deferred income
Derivative financial instruments 17
Note
2010
£m
104.6
5.2
37.9
89.7
16.7
2009
£m
99.9
4.8
32.7
89.7
3.6
254.1 230.7
Amounts due after one year
Trade and other payables
8.7 6.6
Derivative financial instruments 17 54.1 54.2
62.8 60.8
Total trade and other payables 316.9 291.5
The directors consider that the carrying amount of trade and other payables approximates to their fair value.
The average age of trade creditors was 40 days (2009: 42 days).
14. Obligations under f nance leases
Minimum lease
payments
2010 2009
£m £m
Present value of
minimum lease
payments
2010 2009
£m £m
Amounts payable under finance leases
Within one year 1.2 1.2 0.9 0.9
In the second to fifth years inclusive 3.1 4.2 2.8 3.6
After five years – – – –
4.3 5.4 3.7 4.5
Less: future finance charges
(0.6) (0.9) N/A N/A
Present value of lease obligations
3.7 4.5 3.7 4.5
Less: Amount due for settlement within 12 months (shown under current liabilities) (0.9)
2.8
It is the Group’s policy to lease certain of its fxtures and equipment under fnance leases. The average lease term is fve years for equipment and
20 years for FBO leasehold improvements. For the year ended 31 December 2010, the average efective borrowing rate for continuing operations
was 9.7% (2009: 8.2%). Interest rates are fxed at the contract date or vary based on prevailing interest rates.
All of the Group’s fnance lease obligations are denominated in US Dollars.
The fair value of the Group’s lease obligations approximates their carrying amount.
The Group’s obligations under fnance leases are secured by the lessors’ charges over the leased assets.
(0.9)
3.6
Consolidated Financial Statements — 105