Borrowing costs which are directly attributable to the acquisition or construction of qualifying assets are capitalisable. They are defined as the borrowing costs that would have been avoided if the expenditure on the qualifying asset had not been made. All other borrowing costs which are not capitalised are charged to finance costs, using the effective interest rate method.
Finance Income and Costs
Interest income is accounted for on an accruals basis using the effective interest method. Finance costs comprise obligations on finance leases and borrowings and are recognised in the period in which they fall due.
|Interest on cash balances||0.2||0.2|
|— Obligations under finance leases||(9.4)||(8.8)|
|Fair value movement in derivatives||—||(0.2)|
|Fair value movement on provisions||—||(0.1)|
|Net Finance Costs||(9.5)||(9.5)|
The fair value movement in derivative financial instruments arose from fair value adjustments on the Group's cash flow hedges.