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ACCOUNTING POLICIES
Finance income and costs
Interest income and costs are recognised as they accrue (using the effective interest rate method) by reference to the net carrying amount of a particular financial instrument as at the reporting date, in accordance with the principle of materiality.
Dividends are recognised when the shareholders’ right to receive the payment is established.
| Year ended December 31, 2019 | Year ended December 31, 2018 | |
|---|---|---|
| restated data | ||
| NET FINANCE INCOME/(COSTS) FROM FINANCIAL INSTRUMENTS | ||
| Dividends | 1 | 2 |
| Interest, including: | (223) | (140) |
| Interest income calculated using the effective interest rate method | 36 | 45 |
| Revaluation | (11) | (10) |
| Reversal/(recognition) of impairment losses | 3 | (3) |
| Foreign exchange differences | (27) | (18) |
| Loss on disposal of investments | – | (1) |
| TOTAL NET FINANCE INCOME/(COSTS) FROM FINANCIAL INSTRUMENTS | (257) | (170) |
| OTHER NET FINANCE INCOME/(COSTS) | ||
| Interest costs on non-financial items | (204) | (189) |
| Interest on statutory receivables | (1) | 2 |
| Reversal of provisions | (2) | 8 |
| Other | (7) | (12) |
| TOTAL NET OTHER FINANCE INCOME/(COSTS) | (214) | (191) |
| TOTAL NET FINANCE INCOME/(COSTS) | (471) | (361) |
Interest costs mainly relate to bonds issued and credit and loans incurred as well as leases. In the current period, interest costs on lease liabilities amounted to PLN 41 million.
Interest costs on non-financial items relate mainly to rehabilitation provisions and employee benefit provisions.
