content_image/209817.jpg content_image/209818.jpg
## Financial income and expenses 

Financial items, net, decreased by DKK 239m, primarily due to the issue of bonds late in 2012 with a lower coupon than that of bonds maturing during 2013. The coupon was also lower than the interest rates on swaps maturing in 2013. 

Interest expenses primarily relate to interest on borrowings measured at amortised cost and include DKK -37m which is the ineffective portion of interest rate swaps. The ineffective- ness was recognised in fair value adjustments in 2012 and realised in 2013. Borrowing costs on specific or general borrowings which are directly attributable to the development or construction of a qualifying asset are included in the cost of that asset. Interest, losses and write-downs relating to on-trade loans, which are measured at amortised cost, are included as income and expenses in other operating ac- tivities (cf. section 1.3.4), as such loans are seen as a prepaid discount to the customer. 

## 4.1 ACCOUNTING POLICIES 

Financial income and expenses comprise interest income and expenses, payables and transactions denominated in foreign currencies, amortisation of financial assets (other than loans to customers in the on-trade, which are included in other operating activities, net) and liabilities, including defined ben- efit retirement plans, and surcharges and refunds under the on-account tax scheme etc. Realised and unrealised gains and losses on derivative financial instruments which are not designated as hedging arrangements and the ineffective portion of those designated as hedging arrangements are also included. 

Borrowing costs on specific or general borrowings which are directly attributable to the development or construction of a qualifying asset are included in the cost of that asset. 

Of the net change in fair value of cash flow hedges transferred to the income statement, DKK 58m (2012: DKK 266m) is included in cost of sales and DKK 246m (2012: DKK 356m) is included in financial items. 

## FINANCIAL ITEMS RECOGNISED IN THE INCOME STATEMENT 

<img src='content_image/209817.jpg'>

Interest income relates to interest from cash and cash equivalents measured at amortised cost. 

## FINANCIAL ITEMS RECOGNISED IN OTHER COMPREHENSIVE INCOME 

<img src='content_image/209818.jpg'>

