from suppliers. Other payables generally arise from transactions outside the usual operating activities of the Group and the Company. Trade and other payables are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities. Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost, which is the fair value of the consideration to be paid in the future for the goods and services received. NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 FINANCIAL STATEMENTS Sec 5 257 23 PAYABLES (CONTINUED) Group Company Note 2023 RM’million 2022 RM’million 2023 RM’million 2022 RM’million Trade payables (a) 8,888.4 7,753.7 5,615.0 4,452.6 Payroll liabilities 1,662.21,620.2 1,397.5 1,366.0 Provisions (b) 342.1 298.5 169.1 101.8 Financial guarantee contracts 312.1 310.6 316.4 312.2 Insurance contract liabilities 136.2 0 0 0 Accruals 754.6 712.7 522.1 224.9 Other payables 735.1 814.0 317.8 283.7 12,830.7 11,509.7 8,337.9 6,741.2 (a) Included in trade payables of the Group and the Company are obligations amounting to RM1,970.2 million (2022: RM550.5 million) and RM1,970.2 million (2022: RM507.0 million) respectively, relating to the Electricity Industry Fund under the IBR mechanism. Credit terms of trade payables of the Group and of the Company vary from 30 to 60 days (2022: 30 to 60 days) depending on the terms of the contracts. Accounting Policy (continued) Provisions Provisions are recognised when the Group and the Company have a present legal or constructive obligations as a result of past events, it is probable that an outflow of resources will be required to settle the obligations and reliable estimates of the amounts can be made. Where the Group and the Company expect a provision to be reimbursed by another party, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. Provisions are not recognised