Vetoquinol Universal Registration Document 2019

90   Vetoquinol  Universal Registration Document 2019  Financial report 6 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements 6.5.29 Financial liabilities Financial liabilities mainly include borrowings from credit institutions and bank overdrafts. Borrowings are recognized at cost less repayments, net of any transaction costs incurred. Borrowings with a term of less than one year are classified as current liabilities, with the exception of borrowings for which the Group has an unconditional right to defer repayment for at least 12 months after the balance sheet date. In such cases, the borrowings are classified as non-current liabilities. In the case of borrowings corresponding to finance lease restatements, the capital borrowed is equal to the initial value of the assets acquired under finance leases, which are recorded in Property, plant and equipment. Interest expenses are expensed as incurred. Current and non-current financial liabilities break down as follows: €000 Dec 31, 2019 Dec 31, 2018 Borrowings and other financial liabilities 277 196 Non-current financial liabilities 6,300 - Total non-current financial liabilities 6,577 196 Borrowings and other financial liabilities 201 6,424 Current lease liabilities 4,377 - Bank overdrafts 930 54 Total current financial liabilities 5,509 6,478 TOTAL FINANCIAL LIABILITIES 12,086 6,674 The breakdown by maturity of financial liabilities is as follows: €000 Total < 1 year 1-5 years > 5 years At December 31, 2018 Borrowings and other financial liabilities 6,620 6,424 196 - Bank overdrafts 54 54 - - TOTAL FINANCIAL LIABILITIES 6,674 6,478 196 - At December 31, 2019 Borrowings and other financial liabilities 478 201 277 - Lease liabilities 10,677 4,377 5,814 486 Bank overdrafts 930 930 - - TOTAL FINANCIAL LIABILITIES 12,085 5,508 6,091 486 6.5.29.1 Reconciliation between opening and closing balances Opening and closing financial liabilities are reconciled as follows (excluding bank overdrafts), applying a distinction between cash flows and non-cash transactions: €000 Dec 31, 2018 Cash flow Non-cash transactions Dec 31, 2019 Acquisitions Currency gains/ losses IFRS 16 reclassification/ impact Changes in fair value Borrowings and other financial liabilities - non-current 196 (2,393) 2,774 (114) (186) - 277 Borrowings and other financial liabilities - current 6,399 (6,432) 52 (4) 186 - 201 Lease liabilities - 10,677 - 10,677 Hedging instruments 25 - - - - (25) - TOTAL FINANCIAL LIABILITIES 6,620 (8,825) 2,826 (118) 10,677 (25) 11,155