1. RESULTS OF OPERATIONS
1.4 Finance costs and finance income
 

Finance costs/income are recognised in profit and loss using the effective interest rate method as the instruments to which this relates are measured at amortised cost.

Where the core business of a Group subsidiary is providing finance to its customers, the interest earned from these customers is recognised as revenue and the related interest incurred is recognised in changes in inventories of finished goods in the income statement. In all other scenarios, interest is recognised as a finance income or finance expense below operating profit.

  2019 
R’000 		   2018 
R’000 		  
Finance costs        
– Bank   842      170    
– Loans and facilities  208 612     162 647    
– Unwinding of contingent purchase price  189     591    
– Related-party loans (refer to note 8) 149     —    
– Other  21 340     3 205    
– Discounting of payables  14 825     140 023    
   245 957     306 636    
Finance income             
– Bank   (31 300)     (33 006)   
– Loans  (7 585)    (23 331)   
– Related-party loans (refer to note 8) (45 528)    (123 940)   
– Other  (12 396)    (11 549)   
– Discounting of receivables  (2 896)    (3 472)   
   (99 705)    (195 298)   
Net finance costs  146 252     111 338