7.4 Financial income and costs
ACCOUNTING POLICIES
Financial income and costs
Interest income and costs are recognised successively over the respective period using the effective interest method in relation to the net amount of the financial instrument at the reporting date, in line with the materiality principle.
Dividends are recognised when the shareholders’ right to receive payments is established.
| (in PLNm) | Year ended December 31, 2022 |
Year ended December 31, 2021 |
|---|---|---|
| NET FINANCIAL INCOME/(COSTS) FROM FINANCIAL INSTRUMENTS | ||
| Dividends | 4 | 3 |
| Interest, including | 147 | (307) |
| Interest income calculated using the effective interest rate method | 458 | 35 |
| Revaluation of financial assets | (4) | (33) |
| Reversal/(recognition) of impairment | (9) | (7) |
| Exchange differences | (26) | (4) |
| Profit/(loss) on disposal of investment | 37 | (6) |
| Settlement of loss of control | (1) | 324 |
| TOTAL NET FINANCIAL INCOME /(COSTS) FROM FINANCIAL INSTRUMENTS | 148 | (30) |
| NET OTHER FINANCIAL INCOME/(COSTS) | ||
| Interest cost on non-financial items | (338) | (219) |
| Interest on statutory receivables | (3) | 2 |
| Reversal of provisions | (2) | (1) |
| Other | 6 | (2) |
| TOTAL NET OTHER FINANCIAL INCOME/(COSTS) | (337) | (220) |
| TOTAL NET FINANCIAL INCOME/(COSTS) | (189) | (250) |
The Group reports interest income mainly on cash held in bank accounts and deposits Interest costs mainly relate to outstanding bonds, credit facilities, loans, settled IRS transactions and leases. The interest cost on lease liabilities reached PLN 41 million in the current report (PLN 40 million in 2020). The interest cost on non-financial items concerns land rehabilitation provisions and employee benefit provisions.
Result on the loss of control is related to Ørsted’s acquisition of a 50% stake in the increased share capital of EWB 2 and EWB 3.