(29) Other non-financial liabilities
Accounting and measurement policies
Other non-financial liabilities
Accruals for personnel expenses reported in other non-financial liabilities include, in particular, liabilities resulting from vacation entitlements, variable and performance-related compensation components, and social security contributions.
Contract liabilities include payments received by the Group prior to completion of contractual performance.
Other non-financial liabilities comprises the following:
|
|
Dec. 31, 2023 |
|
Dec. 31, 2022 |
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
€ million |
|
Current |
|
Non-current |
|
Total |
|
Current |
|
Non-current |
|
Total |
||||
Accruals for personnel expenses1 |
|
916 |
|
– |
|
916 |
|
1,156 |
|
– |
|
1,156 |
||||
Payroll-related liabilities1 |
|
122 |
|
4 |
|
126 |
|
121 |
|
5 |
|
127 |
||||
Liabilities from non-income-related taxes |
|
163 |
|
1 |
|
164 |
|
200 |
|
1 |
|
202 |
||||
Contract liabilities |
|
249 |
|
3 |
|
252 |
|
282 |
|
3 |
|
285 |
||||
Other accruals |
|
29 |
|
8 |
|
38 |
|
26 |
|
10 |
|
36 |
||||
Other non-financial liabilities1 |
|
1,479 |
|
17 |
|
1,496 |
|
1,786 |
|
19 |
|
1,805 |
||||
|
||||||||||||||||
The reduction in accruals for personnel expenses is due in particular to lower accruals for annual bonus payments for the past fiscal year and for the tranche of the Long-Term Incentive Plan of Merck KGaA, Darmstadt, Germany, that is payable in the months following the reporting date.
The following table shows the development of contract liabilities in the period under review:
|
|
2023 |
|
2022 |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
€ million |
|
Current |
|
Non-current |
|
Total |
|
Current |
|
Non-current |
|
Total |
Jan. 1 |
|
282 |
|
3 |
|
285 |
|
198 |
|
3 |
|
202 |
Additions due to business combinations |
|
– |
|
– |
|
– |
|
1 |
|
– |
|
1 |
Other additions |
|
1,290 |
|
– |
|
1,290 |
|
1,276 |
|
1 |
|
1,277 |
Disposals due to divestments/ |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
Recognition of income/reversal |
|
-1,313 |
|
– |
|
-1,313 |
|
-1,194 |
|
– |
|
-1,195 |
Cumulative catch-up adjustments to revenue |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
Reclassification from non-current to current |
|
– |
|
– |
|
– |
|
1 |
|
-1 |
|
– |
Currency translation |
|
-11 |
|
– |
|
-11 |
|
– |
|
– |
|
– |
Other |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
Dec. 31 |
|
249 |
|
3 |
|
252 |
|
282 |
|
3 |
|
285 |
As of January 1, 2023, contract liabilities amounted to € 285 million (January 1, 2022: € 202 million), of which a total of € 253 million (2022: € 181 million) was recognized through profit or loss in fiscal 2023.