1. Results of operations
1.4 Finance costs and finance income
 

Finance costs/income are recognised in profit or 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 finance costs incurred in the generation of revenue in the income statement. In all other scenarios, interest is recognised as a finance income or finance expense below operating profit.

2021 
R'000 		 2020 
R'000 
Finance costs   
– Bank    288  667 
– Loans and facilities    116 842  203 378 
– Unwinding of contingent purchase price    –  1 166 
– Related-party loans    546  6 
– Other    5 356  5 431 
– Fair value movement on put option    –  7 654 
– Unwinding of lease liability    8 915  11 686 
131 947  229 988 
Finance income   
– Bank    (51 308) (63 371)
– Loans    (3 284) (4 738)
– Related-party loans    (1 192) (2 153)
– Other    (3 933) (5 205)
– Discounting of receivables    –  (2 708)
(59 717) (78 175)
Net finance costs    72 230  151 813