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View Full Version : Trade payables means all payables ?


heshan1997
Nov 25, 2016, 12:22 AM
I have to calculate trade payable payment period for a given financial statement. In it they haven't given trade parables directly, instead there is a figure called “other liabilities”.
Other liabilities consist of -



Policyholder Advance Payment
Agency Commission Payable
Government Levies Payable
Reinsurance Creditors
Other Creditors Including Accrued Expenses
Outstanding Claims - Life Insurance.


When taking trade payable into consideration should I get the total of other liabilities or just "Other Creditors Including Accrued Expenses" ?
Please help

paraclete
Nov 27, 2016, 11:10 PM
Well I expect you have a total for liabilities, but this seems to be an insurance company so what constitutes "trade"? The statistic you are trying to calculate is intended to give a measure of the degree the organisation is using trade credit to finance the business and how well they manage cash flows. I think you need to think about materiality and it is likely the big ticket items are

Agency Commission Payable
Government Levies Payable
Reinsurance Creditors