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Net finance costs
 12 Months Ended
Jun. 30, 2020
Text block [abstract]  
Net finance costs
21    Net finance costs
 
 
  
2020
 
 
2019
 
 
2018
 
 
  
US$M
 
 
US$M
 
 
US$M
 
Financial expenses
  
   
 
   
 
   
Interest expense using the effective interest rate method:
  
   
 
   
 
   
Interest on bank loans, overdrafts and all other borrowings
  
 
1,099
 
 
 
1,296
 
 
 
1,168
 
Interest capitalised at 4.14% (2019: 4.96%; 2018: 4.24%)
(1)
  
 
(308
) 
 
 
(248
) 
 
 
(139
) 
Interest on lease liabilities
  
 
90
 
 
 
47
 
 
 
59
 
Discounting on provisions and other liabilities
  
 
452
 
 
 
470
 
 
 
414
 
Other gains and losses:
  
   
 
   
 
   
Fair value change on hedged loans
  
 
721
 
 
 
729
 
 
 
(265
) 
Fair value change on hedging derivatives
  
 
(788
) 
 
 
(809
) 
 
 
329
 
Exchange variations on net debt
  
 
(18
) 
 
 
6
 
 
 
(19
) 
Other
  
 
14
 
 
 
19
 
 
 
20
 
 
  
 
 
 
 
 
 
 
 
 
 
 
Total financial expenses
  
 
1,262
 
 
 
1,510
 
 
 
1,567
 
 
  
 
 
 
 
 
 
 
 
 
 
 
Financial income
  
   
 
   
 
   
Interest income
  
 
(351
) 
 
 
(446
) 
 
 
(322
) 
 
  
 
 
 
 
 
 
 
 
 
 
 
Net finance costs
  
 
911
 
 
 
1,064
 
 
 
1,245
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
(1)
 
Interest has been capitalised at the rate of interest applicable to the specific borrowings financing the assets under construction or, where financed through general borrowings, at a capitalisation rate representing the average interest rate on such borrowings. Tax relief for capitalised interest is approximately US$92 million (2019: US$74 million; 2018: US$42 million).
Recognition and measurement
Interest income is accrued using the effective interest rate method. Finance costs are expensed as incurred, except where they relate to the financing of construction or development of qualifying assets.