2020 Financial Statements

2. Notes to the IFRS Consolidated Financial Statements / 2.5 Operational Assets and Liabilities 27. Other Assets and Other Liabilities Other Assets (In € million) 31 December 2020 2019 Cost to fulfil a contract 282 351 Prepaid expenses 76 86 Others 125 85 Total non-current other assets 483 522 Value added tax claims 1,025 1,252 Cost to fulfil a contract 557 626 Prepaid expenses 191 147 Others 443 398 Total current other assets 2,216 2,423 Total 2,699 2,945 Other Liabilities (In € million) 31 December 2020 2019 Others 436 384 Total non-current other liabilities 436 384 Tax liabilities (excluding income tax) 749 614 Others 2,411 6,203 Total current other liabilities 3,160 6,817 Total 3,596 7,201 thereof other liabilities due within one year 3,160 6,817 28. Sales Financing Transactions Sales financing — With a view to facilitating aircraft sales for Airbus and Airbus Helicopters, the Company may enter into either on-balance sheet or off-balance sheet sales financing transactions. On-balance sheet transactions where the Company is lessor are classified as operating leases, finance leases and loans, inventories and to a minor extent, equity investments: (i) operating leases – Aircraft leased out under operating leases are included in property, plant and equipment at cost less accumulated depreciation (see “– Note 21: Property, Plant and Equipment”). Rental income from operating leases is recorded as revenue on a straight-line basis over the term of the lease; (ii) finance leases and loans – When, pursuant to a financing transaction, substantially all the risks and rewards of ownership of the financed aircraft reside with a third party, the transaction is characterised as either a finance lease or a loan. In such instances, revenue from the sale of the aircraft are recorded upon delivery, while financial interest is recorded over time as financial income. The outstanding balance of principal is recorded on the Statement of Financial Position (on-balance sheet) in long-term financial assets, net of any accumulated impairments; (iii) inventories – Second hand aircraft acquired as part of a commercial buyback transaction, returned to Airbus after a payment default or at the end of a lease agreement are classified as inventories held for resale if there is no subsequent lease agreement in force (see “– Note 24: Inventories”). 44 Airbus / Financial Statements 2020