AIRBUS - 2020 Financial Statement

2. Notes to the IFRS Consolidated Financial Statements / 2.4 Airbus Performance

17. Total Financial Result

Interest income derived from the Company’s asset management and lending activities is recognised as interest accrues, using the effective interest rate method.

2020

2019

(In € million)

Interests on European Governments’ refundable advances

(108)

(96)

(163)

(15)

Others

Total interest result (1)

(271)

(111)

Change in fair value measurement of financial instruments

111

68

(28)

(69)

Foreign exchange translations on monetary items

(25)

(46)

Unwinding of discounted provisions

(407)

(117)

Others

Total other financial result

(349)

(164)

Total

(620)

(275)

(1) In 2020, the total interest income amounts to €140 million (2019: €228 million) for financial assets which are not measured at fair value through profit or loss. For financial liabilities which are not measured at fair value through profit or loss € -411 million (2019: € -339 million) are recognised as total interest expenses. Both amounts are calculated by using the effective interest method.

Total financial result deteriorated by € -345 mi l l ion to € -620 million compared to € -275 million in 2019. This is driven by a decrease of € -160 million in interest result and the

remeasurement on the A350 Repayable Launch Investment (“RLI”) (see “– Note 26: Other Financial Assets and Other Financial Liabilities”).

18. Income Taxes

The expense for income taxes is comprised of the following:

2020

2019

(In € million)

Current tax expense

227

(2,903)

(266)

514

Deferred tax expense

(39)

(2,389)

Total

Main income tax rates and main changes impacting the Company:

2020

2021

> 2021

(Rate in %)

Netherlands

25.00

25.00

25.00

France

32.02

28.41

25.83

Germany

30.00

30.00

30.00

Spain

25.00

25.00

25.00

UK

19.00

19.00

19.00

30

Airbus / Financial Statements 2020