30. Financial income and expenses

Financial income and expenses include the following items:

Excel

(€ in thousands)

2014

2013

Interest income

1,161

1,114

Interest expense

–4,306

–4,059

INTEREST RESULT

–3,145

–2,945

Other financial result

124

714

Foreign exchange result

–3,844

–2,333

OTHER FINANCIAL RESULT

–3,720

–1,619

The interest expense relates mainly to interest paid on borrowings and amortised transaction costs (see note 27. Borrowings).

The foreign exchange result includes results related to hedging contracts and balance sheet item revaluations. Hedging contracts are entered into to protect the group from adverse exchange rate fluctuations that may result from USD and GBP exposures.

Accounting policy

Interest income and expense are recognised using the effective interest method.