(12,340.5) (9,595.5) - Finance cost paid (2,860.4) (2,657.2) (1,386.6) (1,212.2) Non-cash changes: - Finance cost (Note 37(b)) 2,947.4 2,692.5 1,369.2 1,247.8 - Translation loss - foreign term loans (Note 36) 304.1 280.5 304.1 280.5 - Changes in fair value 3.3 (22.2) 0 0 - Effect of changes in foreign currencies 365.6 (173.1) 0 0 - Acquisition of subsidiaries (Note 48) 701.4 649.2 0 0 - Conversion to NCI equity (Note 7(b)) 0 (626.8) 0 0 As at the end of the financial year 61,770.2 63,882.2 29,678.1 36,231.9 27 GOVERNMENT DEVELOPMENT GRANTS Accounting Policy Grants from the government are recognised at their fair values where there is a reasonable assurance that the grants will be received and the Group will comply with all its corresponding terms and conditions. Government grantsrelating to costs are deferred and recognised in the statement of profit or loss over the period necessary to match them with the costs they are intended to compensate. Government grants relating to construction of PPE are included in non-current liabilities as deferred income and are credited to the statement of profit or loss on the straight line method over the expected lives of the related assets. A subsidiary of the Group obtained Government loans where the interest rate is below the market rate of interest. The differential between the initial carrying value of the loan based on market rate and the Government rate is recognised as a deferred income and is credited to the statement of profit or loss over the period necessary to match the interest costs. NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 TENAGA NASIONAL BERHAD Integrated Annual Report 2023 276 27 GOVERNMENT DEVELOPMENT GRANTS (CONTINUED) Reconciliation of government development grants from financing activities during the financial year is as follows: Group 2023 RM’million 2022 RM’million As at the beginning of the financial year 875.4 948.4 Received during the financial year: - Cash 13.3 3.3 - Assets 124.9 31.2 Released to statement of profit or loss: - Other