Strategic report Governance Financial statements Other information SECTION 2: ASSETS AND LIABILITIES NOTES TO THE GROUP FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONTINUED 2.9 Trade and other payables Other payables principally comprise amounts owed to staff as a bonus and rebates due to the Financial liabilities are classified according to the substance of the contractual arrangements regulated funds operated by the Group. Accruals and deferred income principally comprise amounts entered into. outstanding for trade purchases and receipts from clients, where cash is received in advance for Trade payables are measured at amortised cost using the effective interest method. In accordance certain services. with market practice, certain balances with clients, Stock Exchange member firms and other All balances classified as Deferred income in the prior year have been recognised in revenue in the counterparties are included as creditors. current year. Current elements of lease liabilities are included within other payables, being initially calculated in 2.10 Provisions line with IFRS 16. On inception a lease liability is measured as the present value of future lease payments, discounted at the incremental borrowing rate implied within the lease. The future lease payments of the Group are fixed, except for those that relate to leases in a currency other than Provisions are recognised when the Group has a present obligation as a result of a past event, and it GBP, which may vary due to exchange rate movements is probable that the Group will be required to settle that obligation. Provisions are measured at the Directors’ best estimate of the expenditure required to settle the obligation at the end of the . reporting period, and are discounted to present value where the effect is material. Year ended Year ended 30 June 2021 30 June 2020 £m £m £m Financial liabilities Included within non-current liabilities Trade payables 712.5 637.1 At 1 July 2019 0.7 Current lease liabilities 4.8 3.3 Charged during the year 0.1 Accruals 21.1 22.3 At 30 June 2020 0.8 Other payables 28.9 26.3 Chargedduring the year 1.9 767.3 689.0 At 30 June 2021 2.7 Non–financial liabilities Deferred income 0.4 0.4 The provision brought forward relates to property related costs representing the Group’s future Social security and other taxes 6.3 7.3 committed lease payments on non-cancellable leases and other contractual obligations that arise on 774.0 696.7 the surrendering of leases, in relation to the head office in Bristol. These property provisions are not expected to be fully utilised until 2026. Year ended Year ended 30 June 2021 30 June 2020 Provisions recognised in the current year are not expected to be paid within 12 months of the date of £m £m the Statement of Financial Position and are costs in relation to historic transactions that are now Non–current financial liabilities considered more likely than not to be incurred. Other payables – 1.0 In accordance with market practice, certain balances with clients, Stock Exchange member firms and other counterparties totalling £694.6 million (2020: £634.8 million) are included in trade payables, similar to the treatment of trade receivables. As stated in note 2.6, where we have a legal right of offset and the ability and intention to settle net, trade payable balances have been presented net. 157 Hargreaves Lansdown Report and Financial Statements 2021