Finance costs comprises interest expenses on borrowings and other obligations to third parties, fair value losses on financial assets at fair value through profit or loss,unwinding the discount on provisions, impairmentlosses recognised on financial assets (other than tradereceivables), losses on hedging instruments that are recognised in the income statement and reclassificationsof amounts previously recognised in other comprehensiveincome. Interest expenses are recognised in theconsolidated income statement as they accrue by means ofthe effective interest method.