2.22 Borrowings
Borrowings are obligations to pay cash and are recognised when the Group becomes a party to the contractual provisions of the instrument.
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the Consolidated Statement of Income over the period of the borrowings using the effective interest method.
Direct issue costs are charged to the Consolidated Statement of Income on an accruals basis using the effective interest method.
