Notes 11-15
12. Net finance expenses
Recognised in the income statement
| In millions of EUR |
2008 |
2007 |
| Interest income on unimpaired loans and held-to-maturity investments |
7 |
5 |
| Interest income on available-for-sale investments |
1 |
1 |
| Interest income on cash and cash equivalents |
83 |
58 |
| Interest income |
91 |
64 |
| |
| Interest expenses |
(469) |
(155) |
| |
| Dividend income on available-for-sale investments |
9 |
16 |
| Net loss on disposal of available-for-sale investments |
(1) |
– |
| Net loss on disposal of investments held for trading |
(1) |
– |
| Net change in fair value of derivatives |
(55) |
8 |
| Net foreign exchange loss |
(45) |
(27) |
| Impairment losses on held-to-maturity investments |
(1) |
– |
| Unwinding discount on provisions |
(11) |
(1) |
| Other net financial expenses |
(2) |
– |
| Other net finance expenses |
(107) |
(4) |
| |
| Net finance expenses |
(485) |
(95) |
Recognised directly in equity
| In millions of EUR |
2008 |
2007 |
| Foreign currency translation differences for foreign operations |
(645) |
(90) |
| Effective portion of changes in fair value of cash flow hedges |
(108) |
51 |
| Effective portion of cash flow hedges transferred to the income statement |
(59) |
(36) |
| Net change in fair value of available-for-sale investments |
(12) |
2 |
| Net change in fair value available-for-sale investments transferred to the income statement |
1 |
– |
| |
(823) |
(73) |
| Recognised in: |
| Fair value reserve |
(11) |
2 |
| Hedging reserve |
(167) |
15 |
| Translation reserve |
(645) |
(90) |
| |
(823) |
(73) |
The increase in the impact of foreign currency translation differences for foreign operations in equity is mainly due to the impact of the devaluation of the British Pound on the net assets and goodwill measured in British Pounds of €423 million. Remaining impact is related to devaluation of the Russian Rouble, Chilean Peso, partly off-set by the appreciation of the US Dollar.