Prepayments and accrued income include amounts paid in advance to cover costs that will be charged against income in future years and net revenues not yet invoiced. At 31 December 2010, prepayments amounted to €78 million (2009: 62). The balance of prepayments and accrued income that is expected to be recovered after 12 months is nil (2009: 0).
Prepayments and accrued income also include outstanding short-term foreign exchange forward contracts for an amount of €2 million (2009: 9). The fair value of these financial instruments has been calculated at the relevant (forward) market rates at 31 December 2010. The notional principal amount of the outstanding foreign exchange forward contracts is €177 million at 31 December 2010 (2009: 363).