Financial statements
Section B: Notes to the Group financial statements for the year ended 30 June 2024
Section B: Notes to the Group financial statements for the year ended 30 June 2024
B12 Net finance costs
2024
2023
Note
$M $M
Finance income Income from concession financial asset
— 85 85 51 24
16 67 54 — — 84 —
Interest income on financial assets at amortised cost Interest income on bank deposits held at amortised cost
Net remeasurement gains on derivative financial instruments¹ Net remeasurement gains on borrowings designated in fair value hedges² Unwind of discount and remeasurement of financial assets at amortised cost³ Unwind of discount and remeasurement of liabilities—promissory and concession notes Unwind of discount and remeasurement of liabilities—shareholder loan note commitments
B29
130
9 8
B29
1
Total finance income
392
222
Finance costs Interest and finance charges paid/payable
(705)
(706)
Net remeasurement losses on derivative financial instruments¹
—
(56)
Net remeasurement losses on derivative financial instruments designated in fair value hedges² Unwind of discount and remeasurement of liabilities—maintenance provision Unwind of discount and remeasurement of liabilities—construction obligation liability Unwind of discount and remeasurement of liabilities—promissory and concession notes
(37) (29) (14)
—
B17 B18
(24) (27)
—
(1) (6) (9)
Unwind of discount and remeasurement of liabilities—lease liabilities Unwind of discount and remeasurement of liabilities—other liabilities
B28
(6) (5)
Net foreign exchange losses
—
(38)
Total finance costs
(796)
(867)
Net finance costs⁴ (645) 1. Relates to gains and losses on derivative financial instruments in cash flow hedges transferred from other comprehensive income (OCI) and derivatives not designated in accounting hedge relationships. These include net unrealised gains or losses which arise from changes in the fair value of derivative financial instruments to the extent that hedge accounting is not achieved or is ineffective. Fair values increase or decrease because of changes in market rates over which the Group does not have control. The periodic remeasurement of cross-currency interest rate swap contracts to fair value includes an element of foreign currency basis spread. For those cross-currency interest rate swap contracts that designate the entire fair value of the cross- currency interest swap contract as the hedging instrument (including the foreign currency basis spread component), this can result in hedge accounting ineffectiveness in the hedging relationship that is recognised in finance costs. 2. Remeasurement gains of $24 million (2023: $nil) are offset by remeasurement losses of $37 million (2023: $nil) resulting in a net remeasurement loss of $13 million (2023:$nil). 3. Relates to the unwind of discount and remeasurement of shareholder loan notes (SLNs) with STP JV and NWRG (refer to Note B29). 4. In addition to the net finance costs that are included in the profit and loss, $145 million (2023: $92 million) of finance costs have been capitalised and included in the carrying amount of assets under construction (refer to Note B16). (404)
Interest income on financial assets and bank deposits held at amortised cost accounting policy Interest income on financial assets and bank deposits held at amortised cost is recognised using the effective interest method.
142
141
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