C. Our Funding (cont'd) C6. Net Interest Expense Accounting policies Finance income is recognised in profit or loss as it accrues, using the effective interest rate method. It includes interest income from non-current receivables. Finance costs include interest expense on borrowings and lease liabilities, unwinding of discounts on provision, amortisation of capitalised transaction costs, transaction costs written off and termination of interest rate swaps. Finance costs are expensed in profit or loss using the effective interest method, except to the extent that they are capitalised as being directly attributable to the acquisition, construction or production of a qualifying asset. In calculating the interest income and expense, the effective interest rate is applied to the gross carrying amount of the asset (when the asset is not credit-impaired) or to the amortised cost of the liability. However, for financial assets that have become credit-impaired subsequent to initial recognition, interest income is calculated by applying the effective interest rate to the impaired financial asset. If the asset is no longer credit-impaired, then the calculation of interest income reverts to gross basis. (S$ million) Finance income Finance income from financial assets measured at amortised cost associates and joint ventures bank and others Finance costs Interest paid and payable to, measured at amortised cost banks and others Amortisation of capitalised transaction costs Unwind of discount on restoration costs Significant financing component from contracts with customers Interest rate swaps: changes in fair value through profit or loss ineffective portion of changes in fair value Interest expense on amortisation of lease liability Note H2 D1.1 Group 2021 6 20 26 374 12 1 4 18 л 00 5 9 423 2020 6 29 35 454 11 1 3 17 4 9 499
C. Our Funding (cont'd) C6. Net Interest Expense Accounting policies Finance income is recognised in profit or loss as it accrues, using the effective interest rate method. It includes interest income from non-current receivables. Finance costs include interest expense on borrowings and lease liabilities, unwinding of discounts on provision, amortisation of capitalised transaction costs, transaction costs written off and termination of interest rate swaps. Finance costs are expensed in profit or loss using the effective interest method, except to the extent that they are capitalised as being directly attributable to the acquisition, construction or production of a qualifying asset. In calculating the interest income and expense, the effective interest rate is applied to the gross carrying amount of the asset (when the asset is not credit-impaired) or to the amortised cost of the liability. However, for financial assets that have become credit-impaired subsequent to initial recognition, interest income is calculated by applying the effective interest rate to the impaired financial asset. If the asset is no longer credit-impaired, then the calculation of interest income reverts to gross basis. (S$ million) Finance income Finance income from financial assets measured at amortised cost associates and joint ventures bank and others Finance costs Interest paid and payable to, measured at amortised cost banks and others Amortisation of capitalised transaction costs Unwind of discount on restoration costs Significant financing component from contracts with customers Interest rate swaps: changes in fair value through profit or loss ineffective portion of changes in fair value Interest expense on amortisation of lease liability Note H2 D1.1 Group 2021 6 20 26 374 12 1 4 18 л 00 5 9 423 2020 6 29 35 454 11 1 3 17 4 9 499
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 15QTD
Related questions
Question
(e) What was the amount of restoration cost recognised in profit or loss during the current reporting period?
Transcribed Image Text:C. Our Funding (cont'd)
C6. Net Interest Expense
Accounting policies
Finance income is recognised in profit or loss as it accrues, using the effective interest rate method. It includes interest
income from non-current receivables.
Finance costs include interest expense on borrowings and lease liabilities, unwinding of discounts on provision,
amortisation of capitalised transaction costs, transaction costs written off and termination of interest rate swaps.
Finance costs are expensed in profit or loss using the effective interest method, except to the extent that they are
capitalised as being directly attributable to the acquisition, construction or production of a qualifying asset.
In calculating the interest income and expense, the effective interest rate is applied to the gross carrying amount of
the asset (when the asset is not credit-impaired) or to the amortised cost of the liability. However, for financial assets
that have become credit-impaired subsequent to initial recognition, interest income is calculated by applying the
effective interest rate to the impaired financial asset. If the asset is no longer credit-impaired, then the calculation of
interest income reverts to gross basis.
(S$ million)
Finance income
Finance income from financial assets measured at amortised cost
-
associates and joint ventures
bank and others
Finance costs
Interest paid and payable to, measured at amortised cost
banks and others
Amortisation of capitalised transaction costs
Unwind of discount on restoration costs
Significant financing component from contracts with customers
Interest rate swaps:
changes in fair value through profit or loss
ineffective portion of changes in fair value
Interest expense on amortisation of lease liability
Note
H2
D1.1
Group
2021
6
20
26
374
12
1
4
18
5
。
9
423
2020
6
29
35
454
11
1
3
17
4
9
499
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