IBERSOL Annual Report 2018

ANNUAL REPORT 2018 27. NET FINANCING COST Net financing cost in the years ending on 31st December 2018 and 2017 are broken down as follows: 2017 2017 Interest paid 4.054.505 5.962.742 Interest earned (1) -1.772.469 -1.318.456 Currency exchange differences -72.399 -66.524 Other financial costs and income 779.549 819.849 2.989.186 5.397.611 (1) essentially interest on treasury bonds and term deposits. The detail of other financial costs and income, is presented as follows: 2018 2017 Financial instruments - cash flow hedge (Note 20) -57.884 120.519 Commercial paper programmes charges 650.753 698.732 Discount value (Note 12) 51.106 - Impairment reversal TB's (IFRS9) -111.569 - Other commissions 138.276 78.819 Other financial cost and gains 108.867 -78.221 779.549 819.849 28. INCOME TAX Income tax recognised in the years 2018 and 2017 are broken down as follows: dec/20178 dec/2017 Current taxes 2.720.113 2.124.336 Income tax provisions (Note 19) - 1.182.596 Insufficiency (excess) of income tax -73.338 -2.707.163 Deferred taxes (Note 18) 1.423.534 2.101.820 4.070.309 2.701.589 The group’s income tax prior to taxes is not the same as the theoretical amount that would result from applying the mean weighted income tax rate to the consolidated profit, as follows: 283