BAE-annual-report-2014

Financial statements
5. FINANCE COSTS
Interest income and borrowing costs
Interest income and borrowing costs are recognised in the income statement in the period in which they are incurred.
Interest income 28 48
Gain on remeasurement of financial instruments at fair value through profit or loss 99 51
Foreign exchange gains 114 117
Financial income 241 216
Interest expense on bonds and other financial instruments (177) (197)
Facility fees (4) (11)
Net present value adjustments (48) (20)
Net interest expense on retirement benefit obligations (note 21) (147) (186)
Loss on remeasurement of financial instruments at fair value through profit or loss (75) (146)
Foreign exchange losses (208) (40)
Financial expense (659) (600)
Finance costs (418) (384)
2014
£m
2013
£m
Additional analysis
Finance costs:
Group (418) (384)
Share of equity accounted investments (30) (8)
(448) (392)
Analysed as:
Underlying interest (expense)/income:
Group (201) (180)
Share of equity accounted investments (3) 1
(204) (179)
Other:
Group:
Net interest expense on retirement benefit obligations (147) (186)
Fair value and foreign exchange adjustments on financial instruments and investments (70) (18)
Share of equity accounted investments:
Net interest expense on retirement benefit obligations (8) (9)
Fair value and foreign exchange adjustments on financial instruments and investments (19) –
(448) (392)
2014
£m
2013
£m
STRATEGIC REPORT GOVERNANCE
FINANCIAL STATEMENTS
BAE Systems
Annual Report 2014
113