31 December 2023 TENAGA NASIONAL BERHAD Integrated Annual Report 2023 292 Group Company 2023 RM’million 2022 RM’million 2023 RM’million 2022 RM’million (a) Finance income: Interest from subsidiaries 0 0 258.9 248.6 Interest from deposits, staff loans and associates 614.8 279.8 429.3 172.3 Less: Amount capitalised into PPE (70.5) (2.1) 0 0 544.3 277.7 688.2 420.9 Accounting Policy Finance income are interests received from investments or financial instruments. Investment income earned on the temporary investment of specific borrowing pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation. Finance income is calculated by applying the effective interest method to the gross carrying amount of a financial asset except for financial assets that subsequently become credit impaired. For credit impaired financial assets the effective interest rateis applied to the net carrying amount of the financial assets (after deduction of the loss allowances). The accounting policy on fair value changes are as per disclosed in Note 45. General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use. Qualifying assets are assets that necessarily takes substantial period of time to get ready for their intended use. Other borrowing costs are expensed in the period in which they are incurred. Accounting policy on finance charges for lease liabilities and government grants are disclosed in Notes 15 and Note 27, respectively. 36 FOREIGN EXCHANGE LOSS (CONTINUED) Group Company 2023 RM’million 2022 RM’million 2023 RM’million 2022 RM’million Foreign exchange loss comprises: Translation loss - foreign term loans (304.1) (280.5) (304.1) (280.5) Translation gain/(loss) - others 13.5 31.0 160.3 (46.3) T otal foreign exchange translation loss (290.6) (249.5) (143.8) (326.8) Transaction gain/(loss) - foreign