Notes to the consolidated financial statements

Financial results

The following table contains a breakdown of movements in financial income and expenses:

Breakdown of movements in financial income  

The gains or losses presented in the table above relating to changes in the fair value of derivative financial instruments relate to ineffective derivatives; the efficient portion is recognised together with the result of the hedged item, having the same nature, as explained in Note 11 on derivative financial instruments at fair value.

As regards the fair value gains on derivative financial instruments recognised in 2007, the main impact relates to BAA (in infrastructure projects) in respect of ineffective derivatives amounting to 65 million euro recognised in the income statement, as explained in Note 11.

The main impact on fair value losses on derivative financial instruments in 2007 relates to the recognition of provisions for equity swaps, in the amount of 59 million euro for results of infrastructure projects and 66 million euro for other companies (see Note 3.5 on exposure to market risk).

The following table contains a breakdown by project of the financial results of infrastructure projects. The table indicates the portion of the financial result that is capitalised as an increase in the value of non-current assets of projects under construction:

 the portion of the financial result that is capitalised