Annual Report 2014 | Suomeksi |

10 Other income and other expenses

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Accounting policies + -
Other income
Revenue from activities outside normal operations is reported in other income. This includes recurring items such as rental income and non‑recurring items such as insurance compensation.
Emission allowances
The Group accounts for emission allowances based on currently valid IFRS standards where purchased emission allowances are accounted for as intangible assets at cost, whereas emission allowances received free of charge are accounted for at nominal value. A provision is recognised to cover the obligation to return emission allowances. To the extent that Group already holds allowances to meet the obligation the provision is measured at the carrying amount of those allowances. Any shortfall of allowances held over the obligation is valued at the current market value of allowances. The cost of the provision is recognised in the income statement within materials and services. Gains/losses from sales of emission rights are reported in other income.
Research and development costs
Research and development costs are recognised as expense as incurred and included in other expenses in the income statement. If development costs will generate future income, they are capitalised as intangible assets and depreciated over the period of the income streams.
10.1 Other income
EUR million 2014 2013
Rental income 10 14
Insurance compensation 8 3
Other items 57 76
Total 75 93
In 2013 Fortum received EUR 40 million in compensation for CSA penalties from E4, the general contractor of the Nyagan power plant, which is included in other items in the table above.
No gains booked for sale of emission rights in 2014 nor 2013. Costs for made emissions which are not covered by emission rights received for free were EUR 8 million (2013: 9). The costs are included in Materials and services.
10.2 Other expenses
EUR million 2014 2013
Operation and maintenance costs 131 167
Property taxes 159 170
IT and telecommunication costs 64 68
Other items 242 243
Total 596 648
The major components recorded in other expenses are the external operation and maintenance costs of power and heat plants and of transmission lines. Property taxes include property taxes relating to directly owned hydropower production EUR 132 million (2013: 138).
Principal auditors fees
EUR million 2014 2013
Audit fees 1.4 1.4
Audit related assignments 0.1 0.2
Tax assignments 0.2 0.0
Total 1.8 1.6
Deloitte is the appointed auditor until the next Annual General Meeting, to be held in 2015. Audit fees include fees for the audit of the consolidated financial statements, review of the interim reports as well as the fees for the audit of Fortum Oyj and its subsidiaries. Audit related assignments include fees for assurance of sustainability reporting and other assurance and associated services related to the audit. Tax assignments include fees for tax advice services.

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