ORANGE | CIK:0001038143 | 3

  • Filed: 4/24/2018
  • Entity registrant name: ORANGE (CIK: 0001038143)
  • Generator: Merrill
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/1038143/000110465918025968/0001104659-18-025968-index.htm
  • XBRL Instance: http://www.sec.gov/Archives/edgar/data/1038143/000110465918025968/oran-20171231.xml
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    • ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory

    5.6

    Trade payables

     

    (in millions of euros)
    2017
    2016
    2015

    Trade payables in the opening balance
    6,211
    6,227
    5,775

    Business related variations
    410
    80
    86

    Changes in the scope of consolidation

    (9)
    134
    272

    Translation adjustment

    (56)
    (116)
    29

    Reclassifications and other items
    (34)
    (114)
    65

    Reclassification to assets held for sale

    -

    -

    -

    Trade payables in the closing balance

    6,522
    6,211
    6,227

    o/w trade payables from telecoms activities
    6,440
    6,165
    6,227

    o/w trade payables from Orange Bank
    82
    46

    -

     

     

     

     

    Supplier payment terms are mutually agreed between the suppliers and Orange in accordance with the rules in force. Certain key suppliers and Orange have agreed to a flexible payment schedule which, for certain invoices, can be extended up to six months.

    Trade payables and fixed asset payables that were subject to a payment extension, and had an impact on the change in working capital requirements at the end of the period, amounting to approximately 300 million euros at December 31, 2017, approximately 320 million euros at the end of 2016 and approximately 370 million euros at the end of 2015.

    Accounting policies

    Trade payables resulting from trade transactions and settled in the normal operating cycle are classified as current items. They include those that have been financed by the supplier (with or without notification of transfer to financial institutions) under direct or reverse factoring, and those for which the supplier proposed an extended payment period to Orange and for which Orange confirmed the payment arrangement under the agreed terms. Orange considers these financial liabilities to carry the characteristics of trade payables, in particular due to the ongoing trade relationship, the payment schedules ultimately consistent with the operational cycle of a telecommunications operator in particular for the purchase of primary infrastructures, the supplier’s autonomy in the anticipated relationship and a financial cost borne by Orange that corresponds to the compensation of the supplier for the extended payment schedule agreed.

    For payables without specified interest rates, they are measured at nominal value if the interest component is negligible. For interest bearing payables, the measurement is at amortized cost.