Note 10- Finance income and costs
Recognized in the statement of income:
| 2010 | 2009 | 2008 | |
| Interest income on bank deposits | 196,418 | 224,160 | 359,408 |
| Late payment interest income | 42,064 | 49,037 | 43,479 |
| Interest income on contracted receivables | 12,345 | 31,178 | - |
| Premium income on option contracts | 12,147 | 10,549 | 14,655 |
| Interest income on available-for-sale financial assets | 1,121 | 6,308 | 8,328 |
| Net gain on disposal of available-for-sale financial assets transferred from equity | 1,318 | 2,084 | 6,494 |
| Discount interest income | 886 | 1,052 | 5,053 |
| Other interest income | 10,831 | 5,182 | 4,682 |
| Finance income | 277,130 | 329,550 | 442,099 |
| (258) | (97,016) | (30,501) | |
| Litigation late payment interest expense | |||
| Interest expense on financial liabilities measured at amortized cost | (66,086) | (76,763) | (51,448) |
| Option premium expense | (4,988) | (1,150) | (4,970) |
| Net foreign exchange loss | (13,778) | (576) | (44,452) |
| Other | (17,552) | (12,009) | (5,398) |
| Finance cost | (102,662) | (187,514) | (136,769) |
| Net finance income | 174,468 | 142,036 | 305,330 |
Late payment interest income is interest received from subscribers who pay monthly invoices after the due date specified on the invoices.
Interest income on contracted receivables is recognized over the amount related to the handset campaigns throughout the contract period. Litigation late payment interest expense is recognized in relation to legal disputes. Litigation late payment interest expense comprises accrued interest amounting to $10,235 calculated over SC T and VA T from roaming services that had to be collected from subscribers as a result of tax settlement and accrued interest amounting to $8,428 calculated over SC T on the discounts applied to distributors for prepaid scratch card sales between January 2005 and January 2007 which is calculated based on the previous settlement gains. Besides, accrued interests calculated over SC T on the discounts applied to distributors for prepaid scratch card sales in 2003 and 2004 was $28,400 as of 31 December 2009. However, after settlement, it has been calculated as $5,671 and the difference is reflected to "litigation late payment interest expense"
Borrowings costs capitalized on fixed assets are $11,127, $1,602 and $11,375 for the year ended 31 December 2010, 2009 and 2008, respectively. Interest capitalization ratio is 17.6%, 5.6% and 26.1% for the year ended 31 December 2010, 2009 and 2008 respectively.
