PL
EN| Year ended December 31, 2016 | Year ended December 31, 2015 | |
| FINANCIAL INCOME FROM FINANCIAL INSTRUMENTS | ||
| Dividends | 2 | 1 |
| Interest | 55 | 103 |
| Revaluation of financial instruments, including: | 117 | 33 |
| Reversal of impairment allowances | 90 | 2 |
| Other derivatives | 27 | 20 |
| CO2 emission rights | - | 11 |
| Gain on disposal of investments | - | 15 |
| Foreign exchange gains | 14 | - |
| FINANCIAL INCOME ON FINANCIAL INSTRUMENTS | 188 | 152 |
| OTHER FINANCIAL INCOME | ||
| Interest on statutory receivables | 1 | 1 |
| Reversal of provisions | 1 | 1 |
| Other | 1 | 2 |
| OTHER FINANCIAL INCOME | 3 | 4 |
| TOTAL FINANCIAL INCOME | 191 | 156 |
The Group recognizes interest income primarily on cash.
The increase of Revaluation of financial instruments is mainly due to partly reversed impairment allowance of bonds issued by Autostrada Wielkopolska S.A. in the total amount of PLN 89 million.
Revaluation of other derivatives the Group includes an ineffective portion of CCIRS hedging transactions valuation designated as hedging instruments in the cash-flow hedge accounting and total valuation of other derivatives.
| Year ended December 31, 2016 | Year ended December 31, 2015 | |
| FINANCIAL EXPENSES FROM FINANCIAL INSTRUMENTS | ||
| Interest | 131 | 123 |
| Revaluation of financial instruments | 10 | - |
| CO2 emission rights | 5 | - |
| Other derivatives | 5 | - |
| Impairment loss | 2 | 5 |
| Foreign exchange losses | 33 | 30 |
| FINANCIAL EXPENSES FROM FINANCIAL INSTRUMENTS | 176 | 158 |
| OTHER FINANCIAL EXPENSES | ||
| Interest expenses, including unwinding of the discount | 180 | 156 |
| Interest on statutory liabilities | 1 | 1 |
| Provisions created | 25 | 5 |
| Other | 2 | 3 |
| OTHER FINANCIAL EXPENSES | 208 | 165 |
| TOTAL FINANCIAL EXPENSES | 384 | 323 |
Interest expense relates mainly to issued bonds, loans and borrowings. Interest expense (unwinding of the discount) on non-financial items relates mainly to rehabilitation provision and provisions for employee benefits.
7.4.1. Valuation of transaction related to trading in CO2 emission rights
As described in note 7.4 of these financial statements, income and expenses recognized under the heading “revaluation of the financial instruments” comprise result on transactions related to the CO2 emission rights (so-called trading portfolio). The following table illustrated the effects of particular items related to the CO2 emission rights on the financial income and expenses.
| Year ended December 31, 2016 | Year ended December 31, 2015 | |
| Income | ||
| Valuation of commodity forward | 41 | 4 |
| Profit on sale of CO2 emission rights outside of PGE Group | 1 | 52 |
| Profit on realization of currency forward | - | 4 |
| INCOME RELATED TO TRADING IN CO2 EMISSION RIGHTS, TOTAL | 42 | 60 |
| Expenses | ||
| Valuation of currency forward | (1) | (7) |
| Revaluation of trading portfolio | (46) | (42) |
| EXPENSES RELATED TO TRADING IN CO2 EMISSION RIGHTS, TOTAL | (47) | (49) |
| Financial income / (Expenses) related to trading in CO2 emission rights | (5) | 11 |