27. Net financing result
|
(in millions of euros) |
2024 |
2023 |
|
Interest income from financial assets |
12 |
14 |
|
Exchange rate differences |
6 |
3 |
|
Other financial income |
42 |
84 |
|
Finance income |
60 |
101 |
|
Interest expense on financial liabilities measured at amortised cost |
-12 |
-32 |
|
Interest expense on lease liabilities |
-2 |
-6 |
|
Exchange rate differences |
-8 |
-6 |
|
Interest expense from discounting of provisions/other employee benefits |
-3 |
-3 |
|
Other financial expenses |
-5 |
-11 |
|
Finance expense |
-30 |
-58 |
|
Net financing result included in the income statement |
30 |
43 |
The Group started to allocate construction period interest to assets under construction with effect from 2024. A sum of €47 million was capitalised in 2024.
Other financial income includes €14 million (2023: €66 million) due to the release of provisioned liabilities and guarantees in relation to insolvency proceedings in Germany (see note 30).
Accounting policy
Finance income includes the interest income from monies invested, lease income, gains from the sale of available-for-sale financial assets and gains on hedging instruments that are recognised in the income statement. Interest income is recognised in the income statement as it accrues, using the effective interest method. Dividend income is recognised in the income statement when the right to the dividend payment is established.
Finance expenses include the interest expenses on borrowings, lease contracts, interest accrual on provisions and losses on hedging instruments that are recognised in the income statement. All borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognised in the income statement using the effective interest method.
Exchange rate gains and losses are included in the finance income and expense respectively.