11.1 Accounting policy

The ineffective portion of the change in fair value of interest rate swaps designated as cash flow hedges is included within interest payable on loans and overdrafts. Borrowing costs that are directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of that asset. All other borrowing costs are recognised as an expense in the income statement using the effective interest rate method.

11.2 Total net finance costs

2013
£m
2012
as restated
£m
Interest payable on borrowings
Loans, overdrafts and factoring arrangements13.220.6
Obligations under finance leases0.20.2
Amortisation of capitalised borrowing costs2.61.2
Total interest payable on borrowings16.022.0
Interest on net retirement benefits obligations1.80.1
Unwinding of discounted provisions1.31.4
Finance income(1.8)(1.8)
Total net finance costs17.321.7