Trade payables are obligations to pay for goods or services that have been acquired from suppliers in the ordinary course of business. Trade payables are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.
Trade payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method.
For the accounting policy related to contingent consideration assumed in a business combination, refer to note 4.
Trade and Other Payables can be specified as follows:
in thousands of EUR
31 December 2018
31 December 2017
Employee related payables
Other taxes and social security
Payables to related parties
The contingent consideration mainly relates to the Group's obligation to increase its shareholding in Visilab S.A. in terms of the purchase agreement. Please see note 4 for more details.
The carrying value of the items in the above table is assumed to approximate the fair value due to their short-term nature.