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Finance Income and Expenses
 12 Months Ended
Dec. 31, 2023
Finance Income And Expenses  
Finance Income and Expenses
29.
FINANCE INCOME AND EXPENSES

 

 

 

2023

 

 

2022

 

 

2021

 

FINANCE INCOME

 

 

 

 

 

 

 

 

 

Income from financial investments

 

 

452

 

 

 

468

 

 

 

242

 

Interest on sale of energy

 

 

286

 

 

 

337

 

 

 

460

 

Foreign exchange variations – Itaipu

 

 

7

 

 

 

17

 

 

 

-

 

Foreign exchange variations - loans and debentures

 

 

277

 

 

 

338

 

 

 

-

 

Monetary variations

 

 

163

 

 

 

108

 

 

 

68

 

Monetary variations – CVA

 

 

76

 

 

 

185

 

 

 

64

 

Monetary updating of escrow deposits

 

 

82

 

 

 

82

 

 

 

29

 

PIS/Pasep and Cofins charged on finance income (1)

 

 

(197

)

 

 

(117

)

 

 

(124

)

Gains on financial instruments – Swap

 

 

-

 

 

 

-

 

 

 

 

Prepayment rents

 

 

4

 

 

 

5

 

 

 

-

 

Borrowing costs paid by related parties

 

 

-

 

 

 

-

 

 

 

2

 

Monetary updating on PIS/Pasep and Cofins taxes credits over ICMS (2)

 

 

-

 

 

 

-

 

 

 

20

 

Others

 

 

122

 

 

 

77

 

 

 

83

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,272

 

 

 

1,500

 

 

 

844

 

 

 

 

 

 

 

 

 

 

 

FINANCE EXPENSES

 

 

 

 

 

 

 

 

 

Charges on loans and debentures (Note 21)

 

 

(1,013

)

 

 

(928

)

 

 

(1,147

)

Cost of debt – amortization of transaction cost

 

 

(14

)

 

 

(7

)

 

 

(20

)

Foreign exchange variations - loans and financing

 

 

-

 

 

 

-

 

 

 

(353

)

Premium on repurchase of debt securities (Eurobonds)

 

 

-

 

 

 

(47

)

 

 

(491

)

Foreign exchange variations – Itaipu

 

 

-

 

 

 

-

 

 

 

(27

)

Monetary updating – loans and debentures

 

 

(148

)

 

 

(167

)

 

 

(331

)

Charges and monetary updating on post-employment obligations

 

 

(20

)

 

 

(40

)

 

 

(70

)

Loss on financial instruments – Swap

 

 

(177

)

 

 

(438

)

 

 

(538

)

Monetary updating on PIS/Pasep and Cofins taxes credits over ICMS (2)

 

 

(41

)

 

 

(1,294

)

 

 

-

 

Monetary updating – onerous concessions

 

 

 

 

 

 

 

 

(8

)

Monetary updating – Lease liabilities

 

 

(35

)

 

 

(27

)

 

 

(25

)

Financial expenses (R&D and PEE)

 

 

(38

)

 

 

(38

)

 

 

 

Others

 

 

(165

)

 

 

(80

)

 

 

(86

)

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,651

)

 

 

(3,066

)

 

 

(3,096

)

 

 

 

 

 

 

 

 

 

 

NET FINANCE INCOME (EXPENSES)

 

 

(379

)

 

 

(1,566

)

 

 

(2,252

)

 

 

 

 

 

 

 

 

 

 

 

(1)
PIS/Pasep and Cofins expenses are levied on financial income and interest on own capital.
(2)
The interest of the tax credits related to PIS/Pasep and Cofins, arising from the exclusion of ICMS from its calculation basis, and the liability to be refunded to consumers is presented by net value. With the offsetting of the credits, the liability to be refunded to consumers exceeded the value of the credits to be received, generating a net financial expense.
(3)
This includes inflation correction, in the amount of R$14, on the court escrow deposits received by the Company as ordered in the arbitration proceedings. More details in note 24 – Provision: Dispute on billing of electricity.

Accounting policy

Finance income is mainly comprised of interest income on financial investments and interest of overdue invoices. Interest income is recognized using the effective interest method.

Finance expenses include interest expense on borrowings, and foreign exchange and monetary adjustments on borrowing costs of debt, financings and debentures. They also include the negative change in fair value on other

financial assets and liabilities. Interest expense on the Company’s borrowings that is not capitalized is recognized in the Statement of income using the effective interest method.