Chapters
Annual Report 2020

8. Finance Income and Costs

Accounting Policy

Finance income comprises interest received on outstanding monies and upward adjustments to the fair value of a provision, financial liability or financial asset, gain on derivatives, net foreign exchange gain and interest income on lease receivables.

Finance costs comprise interest due on funds drawn and commercial paper calculated using the effective interest method, interest due on VAT risks, downward adjustments to the fair value of a provision, financial liability or financial asset, losses on derivatives, other interest expenses, commitment fees, the amortization of transaction fees related to borrowings, interest expense on lease liabilities and net foreign exchange losses.

Finance income and costs include:

in thousands of EUR

Notes

2020

2019

Finance costs

- Interest expense on lease liabilities

12

- 24,743

-30,265

- Bank borrowings

- 8,533

-8,258

- Result on derivatives

- 3,798

-2,418

- Commitment and utilization fee

- 4,148

-1,606

- Other

- 5,535

-9,767

- Net foreign exchange loss

- 12,322

-699

Total finance costs

- 59,079

-53,013

Finance income

- Interest income

7,098

1,953

- Interest deposits

1,272

964

- Interest income on lease receivables

12

349

650

- Interest loans to management

-

25

Total finance income

8,719

3,592

Net financial result

- 50,360

-49,421

Finance costs from bank borrowings and interest income include, respectively, costs and income related to balances held in the Group's cash pool.

In 2020, in the line 'interest income' an amount of €6,592 relates to changes in contingent consideration for Charlie Temple acquisition, following the latest business expectations.

In 2019, unwinding of discount on the contingent and deferred considerations amounting to €4,070, was included in Other finance costs.