(in millions of euros) | 2019 | 2018 |
Interest income from financial assets | 3 | 1 |
Interest income from deposits and bank balances | - | - |
Exchange differences | - | - |
Other interest income | 9 | 5 |
Finance income | 12 | 6 |
Interest expense on financial liabilities measured at amortised cost | -14 | -11 |
Interest expense on lease liabilities | -37 | - |
Exchange differences | -3 | -1 |
Interest expense from discounting of provisions/other employee benefits | -1 | -1 |
Other financial expenses | -8 | -7 |
Finance expense | -63 | -20 |
Net finance result included in the income statement | -51 | -14 |
Accounting policies
Finance income includes the interest income from monies invested, lease income, gains from the sale of available-for-sale financial assets and gains on hedging instruments that are recognised in the income statement. Interest income is recognised in the income statement as it accrues, using the effective interest method. Dividend income is recognised in the income statement when the right to the dividend payment is established.
Finance expenses include the interest expenses on borrowings, lease contracts, interest accrual on provisions and losses on hedging instruments that are recognised in the income statement. All borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognised in the income statement using the effective interest method. No borrowing costs were capitalised in 2018 or 2019.
Financial benefits released from cross-border lease arrangements are deducted from the interest expense. Exchange rate gains and losses are included in the finance income and expense respectively.