of equity. Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the closing rate. Exchange differences arising on these items are recognised in OCI. On consolidation, exchange differences arising from the translation of the net investment in foreign operations are taken to shareholders’ equity. On the disposal of a foreign operation (that is, a disposal of the Group’s entire interest in a foreign operation, or a disposal involving loss of control over a subsidiary that includes a foreign operation, a disposal involving loss of joint control over a joint venture that includes a foreign operation, or a disposal involving loss of significant influence over an associate that includes a foreign operation), thecumulative amount of the exchange differences relating to that foreign operation recognised in OCI, and accumulated in the separate component of equity, are reclassified from equity to statement of profit or loss, as part of the gain or loss on disposal. 36 FOREIGN EXCHANGE LOSS NOTES TO THE FINANCIAL STATEMENTS 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