Integrated report 2020
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Integrated report 2020
Interest income and expenses are recognised successively, on an accrual basis, taking into consideration the effective interest rate method with respect to the net book value of a given financial instrument as at the reporting date, in compliance with the materiality principle.
Dividends are recognised at the time when shareholders’ rights to receive them are established.
|
Year ended December 31, 2020 |
Year ended December 31, 2019 |
|
| NET FINANCE INCOME/(EXPENSES) FROM FINANCIAL INSTRUMENTS | ||
| Dividends | 2 | 1 |
| Interest, including: | (269) | (223) |
| Interest income calculated using the effective interest rate method | 32 | 36 |
| Revaluation of financial assets | 12 | (11) |
| Reversal of write-downs | 1 | 3 |
| Foreign exchange differences | (33) | (27) |
| Loss on disposal of investments | (13) | – |
| TOTAL NET FINANCE EXPENSES RELATING TO FINANCIAL INSTRUMENTS | (300) | (257) |
| OTHER NET FINANCE INCOME/(EXPENSES) | ||
| Interest expense on non-financial items | (229) | (204) |
| Interest on liabilities to state budget | (1) | (1) |
| Reversal of provisions | (1) | (2) |
| Other | (11) | (7) |
| TOTAL OTHER NET FINANCE INCOME/(EXPENSES) | (242) | (214) |
| TOTAL NET FINANCE INCOME/(EXPENSES) | (542) | (471) |
Interest costs mainly relate to issued bonds, taken credits and loans, as well as leases. The costs of interest on lease liabilities in the current period amounted to PLN 42 million (PLN 41 million in 2019).
Interest expense on non-financial items relates to provisions for land rehabilitation and provisions for employee benefits.