7.4 Finance income and expenses
| SIGNIFICANT ACCOUNTING PRINCIPLES |
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Finance income and expenses 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 31 December 2023 | Year ended 31 December 2022 | |
| NET FINANCE INCOME/(EXPENSES) FROM FINANCIAL INSTRUMENTS | ||
| Dividends | 1 | 4 |
| Interest, including: | 459 | 147 |
| Interest income calculated using the effective interest rate method | 1.184 | 458 |
| Revaluation of financial assets | (42) | (4) |
| Reversal / (Establishment) of write-downs | (509) | (9) |
| Foreign exchange differences | (46) | (26) |
| Gain/(Loss) on disposal of investments | 20 | 37 |
| Accounting for loss of control | – | (1) |
| TOTAL NET FINANCE EXPENSES RELATING TO FINANCIAL INSTRUMENTS | (117) | 148 |
| OTHER NET FINANCE INCOME/(EXPENSES) | ||
| Interest expense on non-financial items | (474) | (338) |
| Interest on liabilities to state budget | (12) | (3) |
| Reversal of provisions | (2) | (2) |
| Other | (21) | 6 |
| TOTAL OTHER NET FINANCE INCOME/(EXPENSES) | (509) | (337) |
| TOTAL NET FINANCE INCOME/(EXPENSES) | (626) | (189) |
The Group reports interest income mainly on cash held in bank accounts and deposits as well as interest on bonds issued by the company Autostrada Wielkopolska S.A. Interest costs mainly relate to issued bonds, taken credits and loans, settled IRS transactions as well as leases. The costs of interest on lease liabilities in the current period amounted to PLN 66 million (PLN 41 million in 2022). Interest costs on non-financial items relate to provisions for land and provisions for employee benefits. In the item reversal/(creation) of write-downs, the Group presents in the current reporting period mainly the creation of a write-down for accrued interest on Autostrada Wielkopolska S.A. bonds. Revaluation costs result mainly from the valuation of derivatives and embedded derivatives included in electricity sales contracts in the Renewable Power Generation segment.