(in millions of euros) | 2018 | 2017 |
| | | |
Interest income from financial assets | 1 | 1 |
Interest income from deposits and banks balances | - | - |
Exchange rate differences | - | 3 |
Other interest income | 5 | 12 |
Finance income | 6 | 16 |
| | | |
Interest expense from financial liabilities measured by amortised cost | -11 | -11 |
Interes expenses from interest rate swaps for cash flow hedging | - | - |
Exchange rate differences | -1 | -3 |
Interest expenses from discounting of provisions/ other employee benefits | -1 | -2 |
Other financial expenses | -7 | -5 |
Finance expense | -20 | -21 |
| | | |
Net finance result included in the income statement | -14 | -5 |
In 2017, a one-off gain was realised on a release of the provision for a cross-border lease that ended at the beginning of 2018 (€ 8 million).
Accounting policies
Finance income includes the interest income from monies invested (including from financial assets), leasing income, profits from the sale of financial assets, and gains from the 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 borrowed monies, lease contracts, accrued interest on provisions and losses on hedging instruments that are recognised in the income statement. All financing 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 financing costs were capitalised in 2017 or 2018.
Financial benefits released from cross-border lease agreements are deducted from the interest expense. Exchange-rate gains and losses are included in the finance income and expense respectively.