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28. Deferred credits

(in millions of euros)

31 December 2019

31 December 2018

Lump sum payments

182

206

Adjustment mechanism for franchise fee

98

109

Deferred credits

280

315

Less: current

-40

-40

Total non-current as at 31 December

240

275

The lump-sum payment for wage increases resulting from making the Railway Pensions Fund independent in 1994 is expected to be released up to 2035, and to be credited to the income statement. The franchise fee adjustment mechanism is included in the implementation agreement for the main rail network franchise (see note 32). The amounts will be released in equal instalments and be credited to the income statement during the term of the franchise up to and including 2024.

Accounting policies

This income concerns amounts received in a single payment under agreements with terms extending to future years. The income is credited to the income statement over the term of the agreements to which the income relates. The income is measured at amortised cost.

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