Accounting policy

Borrowing costs

Borrowing costs which are directly attributable to the acquisition or construction of qualifying assets are capitalised. 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.

4.3.1 Finance income and costs

53 weeks
2 December
52 weeks
27 November
Interest on cash balances and short-term investment 0.4 1.2
Finance income 0.4 1.2
Borrowing costs
— Obligations under finance leases (3.1) (4.1)
— Borrowings (4.9) (1.0)
Capitalised borrowing costs 4.1 0.6
Fair value movement on derivative financial instruments (0.1) (0.2)
Finance costs (4.0) (4.7)
Net finance costs (3.6) (3.5)