4.3.33Related Party Transactions
During 2020, except for the acquisition of the remaining ownership in the SBM Installer, no major related party transactions requiring additional disclosure in the financial statements took place.
For relations with Supervisory Board members, Management Board members and other key personnel reference is made to note 4.3.6 Employee Benefit Expenses.
The Company has transactions with joint ventures and associates which are recognized as follows in the Company’s consolidated financial statements:
Related party transactions
|
Note |
2020 |
2019 |
|
|---|---|---|---|
|
Revenue |
10 |
19 |
|
|
Cost of sales |
(14) |
(13) |
|
|
Loans to joint ventures and associates |
46 |
55 |
|
|
Trade receivables |
62 |
52 |
|
|
Trade payables |
18 |
17 |
|
|
Lease liabilities |
(0) |
97 |
The decrease in lease liabilities in 2020 relates to the acquisition of the remaining 75% ownership in the SBM Installer. Please refer to note 4.3.13 Property, Plant and Equipment for more information.
The Company has provided loans to joint ventures and associates such as shareholder loans and funding loans at rates comparable to the commercial rates of interest.
During the period, the Company entered into trading transactions with joint ventures and associates on terms equivalent to those that prevail in arm’s-length transactions.
Additional information regarding the joint ventures and associates is available in note 4.3.31 Investment in Associates and Joint Ventures.