Our performance in 2009 - Sappi

122
Notes to the group annual financial statements continued
5. Net finance costs
Gross interest and other finance costs on liabilities carried
2009 2008 2007
at amortised cost 198 181 173
– Interest on bank overdrafts 6 4 8
– Interest on redeemable bonds and other loans 190 174 161
– Interest cost on finance lease obligations 2 3 4
Finance revenue received on assets carried at amortised cost (61) (38) (21)
– Interest on bank accounts (16) (22) (3)
– Discount on early redemption of vendor loan note (41) – –
– Interest revenue on other loans and investments (4) (16) (18)
Interest capitalised to property, plant and equipment – (16) (14)
Net foreign exchange gains (17) (8) (13)
Net fair value loss on financial instruments 25 7 9
– Realised loss on unwind of interest rate swaps 18 – –
– (Gain) loss on non-hedged swaps and loans (2) 2 7
– Amortisation of cost of de-designated hedges – 5 2
– Hedge ineffectiveness
– gain on hedging instrument (derivative) (41) (30) (14)
– loss on hedged item 50 30 14
6. Taxation (benefit) charge
Current taxation:
145 126 134
2009 2008 2007
– Current year 6 23 44
– Prior year over provision (7) (19) (7)
– Other company taxes* 4 2 1
Deferred taxation: (refer to note 11)
– Current year* (44) 89 36
– Prior year under (over) provision 3 – (8)
– Attributable to tax rate changes (3) (9) (19)
(41) 86 47
* Includes Secondary Tax on Companies (STC) (1) 4 7 8
Due to the utilisation of previously unrecognised tax assets, the
deferred taxation expense for the year has been reduced by 22 19 11
In addition to income taxation expense charges to profit and loss, deferred tax relief of US$32 million (2008: US$1 million
charge; 2007: US$18 million charge) has been recognised directly in equity (refer to note 11).