SECTION 4: WORKING CAPITAL
This section contains the Notes on current trade and other receivables (see Note 4.2), current trade and other payables (see Note 4.3) and inventories (see Note 4.1). The net balance of these items is called working capital.
(Millions of euros) |
2015 |
Exchange rate effect |
Changes in the scope of consolidation |
Other |
2016 |
Inventories |
387 |
-5 |
26 |
108 |
516 |
Current trade and other receivables |
2,320 |
-84 |
414 |
178 |
2.828 |
Current trade and other payables |
-3,346 |
88 |
-380 |
-255 |
-3,893 |
TOTAL |
-639 |
-1 |
60 |
31 |
-549 |
The increase in “Current Trade and Other Receivables” and “Current Trade and Other Payables” is due mainly to the inclusion of Broadspectrum (changes to the scope of consolidation), excluding the changes in the scope of consolidation and the exchange rate effect. The net change in working capital is EUR 31 million (see detail in Note 5.3).
The items detailed above include those arising from the recognition of Construction and Services revenue. It should be noted that, since there are differences between the billings made and the revenue recognised in the year as a result of the method used to recognise revenue from the majority of the contracts performed by these divisions (see Note 1.3.3.4), it is important to analyse the disclosures relating to contracts of this nature.